Royal Caribbean (RCL) AI Stock Analysis

• Market Cap: $77.69B
• Dividend Yield: 1.09%
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.54
• Revenue Growth: 8.61%
• EPS Growth: 49.58%
• Country: US
• Employees: 105,950
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 5.75
• Shares Outstanding: 272,712,980
• 10 Day Avg. Volume: 2,742,020
• 30 Day Avg. Volume: 2,327,171
• PEG Ratio: 0.32
• Price to Book (P/B): 7.96
• Price to Sales (P/S): 3.65
• P/FCF Ratio: 30.15
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 6.27
• Enterprise Value/Gross Profit: 12.80
• Enterprise Value/Ebitda: 16.20
• 1Y Price Target: $327.47
• Price Target Upside: 11.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 15.64
• Revenue Forecast (FY): $17.94B

• Rating: 67 Neutral
• Price Target: $267.00 ▼(-9.06% Downside)

Royal Caribbean's overall stock score reflects strong financial performance and positive earnings guidance, tempered by technical weaknesses and high leverage. The company's strategic investments and demand growth are promising, but cash flow management and competitive pressures remain challenges.

Positive Factors

Revenue Growth

The significant revenue growth highlights the company's successful recovery and ability to capture market demand, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management indicates effective operational efficiency and liquidity, providing a stable foundation for future investments and debt management.

Capacity and Demand Growth

The growth in capacity and demand underscores the company's ability to scale operations and meet increasing consumer interest, driving sustained revenue growth.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting flexibility in capital allocation and increasing vulnerability to economic downturns.

Cost Increases

Rising costs can pressure margins and profitability, necessitating careful cost management to maintain financial health and competitive pricing.

Geopolitical and Economic Uncertainty

Geopolitical and economic uncertainties can impact consumer confidence and travel demand, posing risks to revenue stability and growth projections.

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 generates revenue primarily through ticket sales from cruise bookings, which constitute a significant portion of its earnings. In addition to cruise fares, the company also earns substantial income from onboard spending, including dining, beverages, shore excursions, spa services, and retail purchases made by passengers during their voyages. The company's revenue model is enhanced by its ability to upsell various experiences and packages, such as specialty dining and premium beverage packages. Furthermore, Royal Caribbean benefits from strategic partnerships with travel agencies, online travel platforms, and tourism boards, which help to drive customer bookings. Seasonal promotions and loyalty programs also contribute to maintaining a consistent flow of customers, thereby ensuring steady revenue streams throughout the year.

Royal Caribbean Financial Statement Overview

Summary

Royal Caribbean shows strong recovery in profitability and revenue growth, with impressive gross and net profit margins. However, high leverage and cash flow management issues present risks that need addressing for sustainable financial health.

Income Statement

Royal Caribbean has shown impressive recovery and growth in its income statement metrics. The TTM data reveals a strong gross profit margin of 49% and a net profit margin of 23.35%, indicating robust profitability. Revenue growth is positive, reflecting a recovery trajectory post-pandemic. The EBIT and EBITDA margins are healthy, demonstrating efficient operational management.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.08, which is a potential risk factor, though it has improved from previous years. Return on equity is strong at 46.81%, indicating effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure but with room for improvement in reducing leverage.

Cash Flow

Cash flow metrics indicate challenges, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is moderate, suggesting decent cash generation relative to net income. However, the free cash flow to net income ratio is lower, highlighting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.44B	16.48B	13.90B	8.84B	1.53B	2.21B
Gross Profit	8.54B	7.83B	6.13B	2.22B	-1.21B	-556.30M
EBITDA	6.75B	6.09B	4.56B	615.00M	-2.67B	-3.65B
Net Income	4.07B	2.88B	1.70B	-2.16B	-5.26B	-5.80B
Balance Sheet
Total Assets	40.11B	37.07B	35.13B	33.78B	32.26B	32.47B
Cash, Cash Equivalents and Short-Term Investments	641.00M	388.00M	497.00M	1.94B	2.70B	3.68B
Total Debt	20.98B	20.82B	22.13B	23.99B	21.69B	20.00B
Total Liabilities	29.82B	29.34B	30.23B	30.91B	27.17B	23.70B
Stockholders Equity	10.09B	7.56B	4.72B	2.87B	5.09B	8.76B
Cash Flow
Free Cash Flow	2.04B	2.00B	580.00M	-2.23B	-4.11B	-5.70B
Operating Cash Flow	6.31B	5.26B	4.48B	481.00M	-1.88B	-3.73B
Investing Cash Flow	-4.17B	-3.45B	-3.92B	-2.99B	-2.15B	-2.18B
Financing Cash Flow	-2.12B	-1.92B	-1.99B	1.74B	3.04B	9.35B

Royal Caribbean Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 293.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 293.59 is above the 20-day moving average (MA) of 267.26, above the 50-day MA of 277.57, and above the 200-day MA of 277.99, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 83.88 is Negative, 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
EXPE	80 Outperform	$34.65B	27.06	104.40%	0.56%	7.29%	36.51%
ABNB	71 Outperform	$82.35B	31.70	30.78%	―	10.56%	47.16%
RCL	67 Neutral	$77.69B	19.24	47.46%	1.09%	8.61%	49.58%
VIK	66 Neutral	$30.88B	32.51	9999.00%	―	20.04%	―
NCLH	64 Neutral	$9.81B	16.48	39.87%	―	3.59%	19.09%
BKNG	63 Neutral	$172.16B	34.71	―	0.72%	12.96%	3.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Royal Caribbean Corporate Events

Royal Caribbean Completes $1.5 Billion Senior Notes Offering

On October 1, 2025, Royal Caribbean Cruises Ltd. successfully completed a $1.5 billion offering of 5.375% Senior Notes due 2036. The proceeds, approximately $1.484 billion after expenses, will be used to finance the delivery of Celebrity Xcel and to manage existing debts, which may impact the company’s financial strategy and stakeholder interests.