Royal Caribbean (RCL) AI Stock Analysis

• Market Cap: $69.15B
• Dividend Yield: 1.19%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.65
• 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: 3,171,192
• 30 Day Avg. Volume: 2,117,358
• 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: 1.58
• Enterprise Value/Revenue: 6.27
• Enterprise Value/Gross Profit: 12.80
• Enterprise Value/Ebitda: 16.20
• 1Y Price Target: $348.77
• Price Target Upside: 36.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 15.65
• Revenue Forecast (FY): $17.96B

• Rating: 68 Neutral
• Price Target: $319.00 ▲(24.60% Upside)

Royal Caribbean's strong financial recovery and positive earnings guidance are significant strengths, but high leverage and cash flow management issues pose risks. The technical indicators suggest a bearish trend, while the valuation is reasonable. Overall, the stock presents a balanced risk-reward profile.

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 makes money primarily through ticket sales for cruise vacations, which represent a significant portion of its revenue. The company also generates income from onboard spending by passengers, which includes purchases such as specialty dining, shore excursions, spa services, and retail shopping. Additionally, Royal Caribbean earns revenue from beverage packages, Wi-Fi access, and other ancillary services offered during the cruise experience. The company has established partnerships with various travel agencies and online travel platforms to enhance its distribution channels, and it may also engage in promotional partnerships with brands that align with its target markets. Seasonal promotions and loyalty programs further enhance customer retention and drive repeat business, contributing to the company's overall financial success.

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: Negative
• Last Price: 256.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCL, the sentiment is Negative. The current price of 256.01 is below the 20-day moving average (MA) of 293.35, below the 50-day MA of 315.54, and below the 200-day MA of 276.03, indicating a bearish trend. The MACD of -16.08 indicates Positive momentum. The RSI at 26.39 is Positive, neither overbought nor oversold. The STOCH value of 4.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCL.

Royal Caribbean Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	76 Outperform	$31.95B	24.68	104.40%	0.46%	7.29%	36.51%
TCOM	73 Outperform	$47.07B	19.36	12.94%	0.40%	17.73%	27.95%
RCL	68 Neutral	$69.15B	17.12	47.46%	1.19%	8.61%	49.58%
VIK	67 Neutral	$25.89B	31.36	―	―	17.72%	―
MMYT	65 Neutral	$10.18B	117.35	16.66%	―	14.55%	-68.46%
NCLH	64 Neutral	$8.30B	14.53	39.87%	―	3.59%	19.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Royal Caribbean Corporate Events

Royal Caribbean Cruises: Strong Earnings Amid Challenges

Royal Caribbean Cruises’ recent earnings call painted a picture of robust financial health, underscored by significant growth in earnings per share and strategic expansion of exclusive destinations. While the company faced challenges such as adverse weather impacts and increased competition in the Caribbean, the overall sentiment was positive, with the benefits slightly outweighing the hurdles.

Royal Caribbean Reports Strong Q3 Earnings and Raises Guidance

Royal Caribbean Group, a leader in the vacation industry, operates a global fleet of 68 ships across five brands, providing cruise and land-based vacation experiences worldwide. The company recently reported strong third-quarter earnings, with an EPS of $5.74 and an adjusted EPS of $5.75, surpassing expectations due to increased demand and lower costs. As a result, Royal Caribbean has raised its full-year adjusted EPS guidance to between $15.58 and $15.63, indicating a 32% year-over-year growth. This performance is attributed to high guest satisfaction and strong bookings, despite minor disruptions from adverse weather and a temporary closure in Haiti.

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.

The most recent analyst rating on (RCL) stock is a Buy with a $366.00 price target. To see the full list of analyst forecasts on Royal Caribbean stock, see the RCL Stock Forecast page.

Royal Caribbean Group Reports Strong Q2 Results

Royal Caribbean Group, a leader in the vacation industry, operates a global fleet of 68 ships across five brands, offering cruise experiences to all seven continents. The company is known for its innovative approach to leisure travel, providing a mix of cruise and land-based vacation experiences.

Royal Caribbean Cruises Reports Strong Earnings Growth

The recent earnings call for Royal Caribbean Cruises painted a picture of robust financial health and strategic growth. The sentiment was overwhelmingly positive, with the company reporting substantial revenue and earnings growth. This success was attributed to high demand, the introduction of new offerings, and increased customer engagement, despite some challenges related to timing and cost increases. Overall, the outlook remains optimistic, with strategic investments setting the stage for future growth.