Royal Caribbean (RCL) AI Stock Analysis

• Market Cap: $72.77B
• Dividend Yield: 1.12%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.55
• Revenue Growth: 13.66%
• EPS Growth: 49.86%
• Country: US
• Employees: 105,950
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Travel Services
• EPS (TTM): 2.71
• Shares Outstanding: 271,560,360
• 10 Day Avg. Volume: 2,040,467
• 30 Day Avg. Volume: 1,791,145
• PEG Ratio: 0.09
• Price to Book (P/B): 4.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.66
• Enterprise Value/Market Cap: 0.44
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 1.37
• 1Y Price Target: $274.56
• Price Target Upside: 6.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 75 Outperform
• Price Target: $281.00 ▲(8.88%Upside)

Royal Caribbean's overall stock score reflects a strong financial recovery and solid earnings performance, driven by significant revenue growth and strategic initiatives. Mixed technical indicators and moderate valuation temper the outlook. However, positive earnings guidance and enhanced financial flexibility improve the company's prospects, with careful management of leverage and macroeconomic uncertainties being essential considerations.

Positive Factors

Demand

Demand for cruising has not decelerated at all, suggesting strong interest in Royal Caribbean's offerings.

Financial Performance

RCL reported solid 1Q25 EPS of $2.71 that beat forecasts driven largely by expense timing and modest net yield upside.

Management

Royal Caribbean's management team is considered one of the best in the cruise industry, reinforcing confidence in future performance.

Negative Factors

Consumer Health

Concerns about consumer health and potential changes in corporate tax structures are impacting RCL shares.

Royal Caribbean Business Overview & Revenue Model

Company Description

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands, which comprise a range of itineraries that call on approximately 1,000 destinations. As of February 25, 2022, it operated 61 ships. The company was founded in 1968 and is headquartered in Miami, Florida.

How the Company Makes Money

Royal Caribbean Group generates revenue primarily through the sale of cruise tickets and onboard services. The company's revenue model includes two main streams: passenger ticket revenues and onboard revenues. Passenger ticket revenues stem from the sale of cruise tickets, which vary depending on the itinerary, cruise length, and type of accommodation. Onboard revenues are derived from various services and amenities offered on the ships, including dining, beverages, shore excursions, spa services, and retail sales. The company also benefits from strategic partnerships with travel agents and industry stakeholders, which help drive bookings and enhance guest experiences. Seasonal demand, economic conditions, and geopolitical factors can significantly impact Royal Caribbean's financial performance.

Royal Caribbean Financial Statement Overview

Summary

Royal Caribbean shows a strong financial recovery, with notable improvements in profitability and cash flow metrics. Despite a high debt level, the company effectively manages its operations with strong revenue and profit growth.

Income Statement

Royal Caribbean's income statement shows a strong recovery with a notable improvement in profitability metrics. The TTM gross profit margin stands at 48.23%, indicating robust cost management. Net profit margin has increased to 19.38% in TTM, reflecting enhanced operational efficiency. Revenue growth rate is impressive at 20.57% from 2023 to 2024, demonstrating strong demand recovery post-pandemic. EBIT and EBITDA margins are also strong at 25.67% and 37.43% respectively, highlighting effective cost control and operational leverage.

Balance Sheet

The balance sheet shows improvement in equity with a debt-to-equity ratio of 2.53, reflecting a significant decrease in leverage compared to previous years. Return on equity has improved to 40.79% in TTM, indicating efficient use of shareholder funds. However, the equity ratio remains low at 21.26%, suggesting a relatively high level of liabilities compared to assets, which could pose risks if not managed properly.

Cash Flow

Cash flow metrics indicate solid performance with a strong free cash flow growth rate of 5.66% in TTM. The operating cash flow to net income ratio is 1.71, suggesting healthy cash generation relative to net income. Free cash flow to net income ratio stands at 0.65, showing positive cash flow after capital expenditures. This reflects effective cash management and supports ongoing investments and debt reduction.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.76B	16.48B	13.90B	8.84B	1.53B	2.21B
	Gross Profit
8.08B	7.83B	6.13B	2.22B	-1.21B	-556.30M
	EBIT
4.30B	4.11B	2.88B	-766.00M	-3.87B	-4.60B
	EBITDA
6.30B	6.09B	4.56B	615.00M	-2.67B	-3.65B
	Net Income Common Stockholders
3.25B	2.88B	1.70B	-2.16B	-5.26B	-5.80B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
386.00M	388.00M	497.00M	1.94B	2.70B	3.68B
	Total Assets
37.45B	37.07B	35.13B	33.78B	32.26B	32.47B
	Total Debt
20.12B	20.82B	22.13B	23.99B	21.69B	20.00B
	Net Debt
19.73B	20.43B	21.63B	22.06B	18.99B	16.31B
	Total Liabilities
29.31B	29.34B	30.23B	30.91B	27.17B	23.70B
	Stockholders Equity
7.96B	7.56B	4.72B	2.87B	5.09B	8.76B
Cash Flow		Free Cash Flow
2.11B	2.00B	580.00M	-2.23B	-4.11B	-5.70B
	Operating Cash Flow
5.56B	5.26B	4.48B	481.00M	-1.88B	-3.73B
	Investing Cash Flow
-3.59B	-3.45B	-3.92B	-2.99B	-2.15B	-2.18B
	Financing Cash Flow
-2.02B	-1.92B	-1.99B	1.74B	3.04B	9.35B

Royal Caribbean Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCL, the sentiment is Positive. The current price of 258.08 is below the 20-day moving average (MA) of 258.08, above the 50-day MA of 229.84, and above the 200-day MA of 220.23, indicating a neutral trend. The MACD of 9.71 indicates Positive momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 37.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RCL.

Royal Caribbean Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCL	75 Outperform	$72.77B	22.50	49.55%	1.12%	13.66%	49.86%
MMYT	75 Outperform	$11.02B	116.97	8.33%	―	28.51%	367.34%
EXPE	74 Outperform	$22.03B	20.42	119.16%	0.93%	5.57%	61.19%
TCOM	71 Outperform	$40.48B	17.53	12.49%	0.46%	16.23%	56.05%
VIK	66 Neutral	$21.15B	37.80	34.73%	―	14.86%	―
NCLH	63 Neutral	$8.53B	11.41	95.87%	―	5.57%	141.01%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%

Royal Caribbean Corporate Events

Royal Caribbean Announces Leadership Transition for Board

On June 6, 2025, Royal Caribbean Group announced a leadership transition for its Board of Directors. Richard Fain, who has been the Chair since 1988, will step down in Q4 2025, with Jason Liberty, the current President and CEO, succeeding him as Chairman and CEO. John Brock will take on the role of Independent Lead Director, bringing his extensive experience to support the company’s growth and governance. This transition marks a significant shift in leadership aimed at continuing the company’s trajectory of delivering exceptional vacation experiences and long-term value for shareholders.

The most recent analyst rating on (RCL) stock is a Buy with a $204.00 price target. To see the full list of analyst forecasts on Royal Caribbean stock, see the RCL Stock Forecast page.

Royal Caribbean Elects Board at Annual Meeting

At the Annual Meeting on May 28, 2025, Royal Caribbean‘s shareholders elected thirteen nominees to the Board of Directors, each receiving a majority of affirmative votes. Additionally, the compensation for the company’s named executive officers was approved on an advisory basis, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (RCL) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on Royal Caribbean stock, see the RCL Stock Forecast page.

Royal Caribbean Expands Credit Facilities by $2.28 Billion

On May 14, 2025, Royal Caribbean Cruises Ltd. announced amendments to its unsecured revolving credit facilities, increasing commitments by $2.28 billion and extending the maturity of one facility to October 2030. This move enhances the company’s financial flexibility and supports its strategic growth initiatives, reflecting strong support from lending partners and a robust credit profile.

The most recent analyst rating on (RCL) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on Royal Caribbean stock, see the RCL Stock Forecast page.