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Royal Caribbean Cruises Ltd (RCL)

Fair Value
Consumer CyclicalTravel ServicesUnited States

Fundamental

67

Price

$265.86

Market Cap

$64.88B

Part 1 · What the company is worth

Overview

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of December 31, 2025, it operated 69 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$18.68B

Trailing 12 months (through 6/30/2026)

Net Income

$4.40B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$1.24B

Total Equity

$10.04B

Total Liabilities

$31.37B

Current Ratio

0.21

Interest Coverage

4.96

Debt/EBITDA

3.55

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$229.95

Current Price

$265.86

Margin of Safety

-15.6%

Fair Value Range

$149.47 - $310.43

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$348.28
Discounted cash flow (DCF):$91.58
Earnings multiple (P/E):$194.04
Graham growth formula:$263.57
Earnings power value (EPV):$98.57
Justified P/B:$132.37
Dividend discount (Gordon):$28.48
P/FFO, funds from operations:$358.11
Mid-cycle earnings:$115.89
Revenue multiple:$119.49
Analyst Consensus:Buy (25B / 11H / 0S)
Last Earnings Surprise:+4.62%

Valuation Metrics

P/E Ratio

16.43

ROE

42.5%

P/B Ratio

6.95

P/FCF

52.49

Gross Margin

49.1%

ROIC

12.2%

Profitability Radar

Value Creation (Economic Moat)

ROIC

12.2%

WACC

12.0%

ROIC − WACC

+0.2 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 10.92%
  • Price CAGR 12.23%
  • ROIC 12.2%
  • Gross Margin 49.1%
  • Debt/Equity ratio
  • Operating Margin 27.3%
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 43.8%
  • Revenue Growth 5Y 52.0%
  • Analyst Consensus 69% Buy
  • Earnings Surprise avg 4.0%
  • Earnings Quality (OCF/NI) 1.54
  • Net Margin Trend 23.5% vs 21.0%
  • Piotroski F-Score 7/9

Failed (7)

  • P/FCF 52.49
  • P/B Ratio 6.95
  • Positive Free Cash Flow
  • Current Ratio
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Share Dilution 4.0%

Unavailable (3)

  • Dividend Payout NaN%
  • CapEx intensity
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

1.54

High quality: earnings backed by cash

Share Dilution

4.0%

Issuing new shares, diluting ownership

Institutional Holdings

No institutional filings reported for this company.

Governance

Executive Team

NameTitleAge
Mr. Jason T. LibertyCEO & Chairman-
Mr. Naftali HoltzExecutive VP & CFO47
Mr. Harri U. KulovaaraExecutive Vice President of Newbuilding72
Mr. Michael W. BayleyPresident & CEO of Royal Caribbean66
Ms. Laura J. Hodges BethgePresident of Celebrity Cruises50
Mr. Henry L. PujolSenior VP & Chief Accounting Officer57
Ms. Martha Cecilia PoulterSenior VP & Chief Information Officer58
Ms. Dana RitzcovanExecutive Vice President and Chief People & Administrative Officer-
Mr. Blake VanierVice President of Investor Relations-
Mr. Robert Alexander Lake Jr.Senior VP, Chief Legal Officer & Secretary53

Audit Risk

6

Board Risk

7

Compensation Risk

7

Shareholder Rights Risk

9

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-11

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-28

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-23

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for RCL, sourced from Markets Gazette.

  • 8d agoNEUTRAL
    Royal Caribbean Teams with Sandals, Morgan Stanley Addresses Deals Leak

    Royal Caribbean Cruises Ltd. is mentioned in a news segment discussing corporate transactions, alongside a partnership with Sandals and a deal leak addressed by Morgan Stanley. The program features insights from M&A experts at JPMorgan and Weil, Gotshal & Manges. While the specific details of the Royal Caribbean partnership or the Morgan Stanley deal leak are not elaborated upon, the context suggests a focus on significant corporate activity. Investors should monitor for further disclosures regarding these transactions, as they could impact the company's strategic positioning and financial performance.

  • 8d agoPOSITIVE
    Royal Caribbean Buys Stake in Sandals Resorts

    Royal Caribbean Cruises has announced a strategic move to acquire a 50% stake in Sandals Resorts International for approximately $3 billion. This significant investment positions Royal Caribbean to expand its footprint within the all-inclusive resort sector, potentially enhancing its integrated travel offerings. The deal is expected to leverage synergies between the cruise line's extensive customer base and Sandals' established resort brand, aiming to create a more comprehensive vacation experience. Investors will be watching for the integration progress and its impact on future earnings and market share.

  • 7/28/2026POSITIVE
    Royal Caribbean Upbeat on European Sailings Amid Iran War

    Royal Caribbean Cruises Ltd. reported robust demand for its European itineraries, signaling resilience despite geopolitical tensions in the Middle East. The company indicated that ongoing conflicts have not significantly impacted bookings for its lucrative Mediterranean sailings. This positive outlook suggests that consumer confidence for leisure travel remains strong, particularly for established cruise lines. Investors may view this as a sign of the company's ability to navigate external risks and maintain its revenue streams, potentially leading to upward price adjustments for the stock.

  • 7/28/2026NEGATIVE
    Royal Caribbean (RCL) Lowers Yield Forecast as Middle East Turmoil Hits Bookings

    Royal Caribbean Cruises Ltd. has revised its yield forecast downwards, citing a "modest" impact on bookings stemming from ongoing geopolitical turmoil. This adjustment signals potential headwinds for the cruise line operator as international instability affects consumer travel decisions. Investors will be monitoring future booking trends and management's strategies to mitigate these external pressures. The company's ability to navigate these challenges will be crucial for its near-term financial performance and stock valuation.

  • 6/18/2026POSITIVE
    Here's How Much $1000 Invested In Royal Caribbean Group 5 Years Ago Would Be Worth Today

    An investment of $1000 in Royal Caribbean Group (RCL) five years ago would have grown to approximately $3,140 today, representing a substantial 214% return. This performance significantly outpaced the broader market, highlighting the cruise line's strong recovery and growth trajectory post-pandemic. The company has benefited from robust consumer demand for travel and effective capacity management. For investors, this demonstrates the potential for significant capital appreciation in well-managed companies within the leisure and travel sector, even after periods of significant disruption.

  • 6/11/2026POSITIVE
    Here's How Much $100 Invested In Royal Caribbean Group 5 Years Ago Would Be Worth Today

    An investment of $100 in Royal Caribbean Group five years ago would have yielded a substantial return, growing to approximately $385 today. This represents a compound annual growth rate of roughly 31.5%. The cruise line operator has seen significant recovery and growth post-pandemic, driven by strong consumer demand for travel and effective capacity management. Investors who held RCL stock during this period have benefited from the company's robust financial performance and strategic initiatives aimed at enhancing shareholder value.

  • 5/18/2026NEGATIVE
    Royal Caribbean Slides After Mexico Reviews Water Park Plan

    Royal Caribbean Cruises Ltd. (RCL) experienced a share price decline following an announcement by Mexican President Claudia Sheinbaum. The President has initiated a review of the cruise line operator's proposed water park project located in the Quintana Roo state. This regulatory scrutiny introduces uncertainty and potential delays or modifications to the project, which could impact future revenue streams and operational expansion plans for the company. Investors are likely to react cautiously to this news, awaiting further clarity on the review's outcome.

  • 5/13/2026POSITIVE
    $1000 Invested In Royal Caribbean Group 15 Years Ago Would Be Worth This Much Today

    An investment of $1000 in Royal Caribbean Group (RCL) 15 years ago would have yielded a substantial return, illustrating the company's strong performance and growth trajectory over the past decade and a half. This historical performance indicates robust operational execution, effective management strategies, and favorable market conditions within the cruise industry. For current and potential investors, this data point underscores Royal Caribbean's capacity for significant shareholder value creation and its resilience in a dynamic travel sector.

  • 4/30/2026POSITIVE
    Royal Caribbean CEO Sees Robust Demand Despite Risks

    Royal Caribbean CEO Jason Liberty expressed optimism regarding the cruise operator's future, citing robust demand that remains unaffected by current geopolitical risks. This positive outlook follows a strong earnings report and an upward revision to the company's full-year forecast. Liberty's comments suggest that consumer appetite for travel and leisure experiences is resilient, providing a solid foundation for continued growth. Investors may view this as a signal of sustained revenue generation and profitability, potentially leading to increased confidence in the stock.

via Markets Gazette