Royal Caribbean Group
Exchange: NYSESector: IndustrialsIndustry: Travel Services
Royal Caribbean Group is a leading global vacation company spanning cruise, exclusive destinations, and land-based vacation experiences. The company operates 69 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands – Royal Caribbean, Celebrity Cruises, and Silversea – and a 50% joint venture interest in TUI Cruises which operates the Mein Schiff and Hapag-Lloyd brands. The Group is expanding its portfolio of private destinations from three to eight by 2028 through its Perfect Day and Royal Beach Club collections, and the company will enter river cruising in 2027 with Celebrity River Cruises. Powered by innovative brands, advanced technology, and an industry-leading loyalty program, the company has built a connected vacation ecosystem, turning the vacation of a lifetime into a lifetime of vacations. Named to the Fortune World's Most Admired Companies 2026 and Forbes' 2026 Best American Companies lists, Royal Caribbean Group is guided by its mission to deliver the best vacations responsibly.
Did you know?
Generated $0.2 in free cash flow for every $1 of capital expenditure in FY25.
Current Price
$259.48
-2.29%GoodMoat Value
$461.10
77.7% undervaluedProfile
Valuation (TTM)
Market Cap$70.20B
P/E15.67
EV$97.29B
P/B6.99
Shares Out270.53M
P/Sales3.82
Revenue$18.39B
EV/EBITDA12.40
Royal Caribbean Group (RCL) Stock Analysis
GoodMoat Analysis
Royal Caribbean Group is a leading global cruise operator with a high-quality business profile, evidenced by exceptional profitability and a potential moat. However, its current valuation appears full, offering a minimal margin of safety based on a DCF analysis.
Read full analysis
Royal Caribbean Group (RCL) operates a global fleet of cruise ships under brands like Royal Caribbean International, Celebrity Cruises, and Silversea. The business demonstrates high quality, with an operating margin of 27.4% and a remarkable ROE of 42.5%, far exceeding the 15-20% threshold for a high ROIC. Applying the GoodMoat framework, the company likely scores well on Moat criteria such as Scale Privilege (global fleet), Brand & Culture, and potentially Regulatory Barriers (port access), suggesting a durable competitive advantage. Its financial health is strong, with a solid profit margin of 23.8% and 13.3% YoY revenue growth. The Decision Framework's Step 1 (Moat & Quality Gate) would likely be passed. However, the valuation assessment is less compelling. The GoodMoat Target of $461.10 implies a potential upside, but the current price of $279.01 yields a minimal margin of safety of approximately 1.5% relative to that target, placing it in the 'Marginal' (10-20%) or 'Unfavourable' (<10%) band. Key risks include a high Debt/Equity ratio of 2.2 and a low FCF Yield of 1.6%, which are common post-pandemic but warrant monitoring. For a value investor, this is a high-quality business currently priced with little room for error, making further investigation necessary to justify the premium. Analysis based on data as of 2024-05-15.
Market Cap$70.20B
Current Price$259.48
P/E Ratio15.67
Forward P/E—
PEG Ratio0.54
EPS$15.61
Book Value$37.10
P/B Ratio6.99
RCL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 10.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 21.2B
Revenue
11.0B
FY19
2.2B
FY20
1.5B
FY21
8.8B
FY22
13.9B
FY23
16.5B
FY24
17.9B
FY25
Net Income
1.9B
FY19
—
FY20
—
FY21
—
FY22
1.7B
FY23
2.9B
FY24
4.3B
FY25
RCL 52-Week Range
$222.28
$361.49
50-Day MA: $277.97200-Day MA: $297.05
Did you know?
Pays a 1.17% dividend yield.
Royal Caribbean Group (RCL) Financial Summary
Royal Caribbean Group (RCL) is a Industrials company in the Travel Services industry, listed on NYSE. The stock currently trades at $259.48 with a market capitalization of $70.20B.
Key valuation metrics include a P/E ratio of 15.67, price-to-book ratio of 6.99, and EPS of $15.61. The company reports a profit margin of 24.4% and return on equity of 44.6%.
RCL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $70.20B |
| P/E Ratio | 15.67 |
| EPS | $15.61 |
| P/B Ratio | 6.99 |
| P/S Ratio | 3.82 |
| EV/EBITDA | 12.40 |
| Dividend Yield | 1.17% |
| Profit Margin | 24.4% |
| Return on Equity | 44.6% |
| Debt/Equity | 2.20 |
RCL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $10.95B | $1.88B |
| FY20 | $2.21B | $-5.80B |
| FY21 | $1.53B | $-5.26B |
| FY22 | $8.84B | $-2.16B |
| FY23 | $13.90B | $1.70B |
| FY24 | $16.48B | $2.88B |
| FY25 | $17.93B | $4.27B |
Royal Caribbean Group (RCL) Valuation
Based on GoodMoat's DCF model, Royal Caribbean Group has a fair value estimate of $461.10. At the current price of $259.48, the stock appears 43.7% undervalued relative to our intrinsic value estimate.
RCL Quality Indicators
Royal Caribbean Group maintains a profit margin of 24.4% and an operating margin of 27.4%. Return on equity stands at 44.6%. The current ratio is 0.18. Debt-to-equity ratio is 2.20.
About Royal Caribbean Group
Royal Caribbean Group is a leading global vacation company spanning cruise, exclusive destinations, and land-based vacation experiences. The company operates 69 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands – Royal Caribbean, Celebrity Cruises, and Silversea – and a 50% joint venture interest in TUI Cruises which operates the Mein Schiff and Hapag-Lloyd brands. The Group is expanding its portfolio of private destinations from three to eight by 2028 through its Perfect Day and Royal Beach Club collections, and the company will enter river cruising in 2027 with Celebrity River Cruises. Powered by innovative brands, advanced technology, and an industry-leading loyalty program, the company has built a connected vacation ecosystem, turning the vacation of a lifetime into a lifetime of vacations. Named to the Fortune World's Most Admired Companies 2026 and Forbes' 2026 Best American Companies lists, Royal Caribbean Group is guided by its mission to deliver the best vacations responsibly.
RCL Free Cash Flow
Royal Caribbean Group generated $1.24B in trailing twelve-month free cash flow, representing an FCF yield of 1.76%. This low FCF yield may reflect heavy reinvestment or growth spending.
RCL Shares Outstanding
Royal Caribbean Group has 0.27 billion shares outstanding at a share price of $259.48, giving it a market capitalization of $70.20B.
RCL Recent Insider Trades
Recent insider transactions at Royal Caribbean Group include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Wilhelmsen Arne Alexander | SELL | 42,240 | $13.22M |
| Wilhelmsen Arne Alexander | SELL | 4,651 | $1.44M |
| Wilhelmsen Arne Alexander | SELL | 2,025 | $642451.50 |