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Carnival PLC CCL

Morningstar Rating
GBX 1,078.00 −19.00 (1.73%)
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Company Report

Rerating Carnival's Moat to Narrow as Brand Continues to Resonate With Consumers

Carnival remains the largest company in the cruise industry, with nine global brands and 92 ships at the end of fiscal 2023. The global cruise market has historically been underpenetrated, offering cruise companies a long-term demand opportunity. Additionally, the repositioning and deployment of ships to faster-growing and underrepresented regions like Asia-Pacific had helped balance the supply in high-capacity regions like the Caribbean and Mediterranean prior to the pandemic, a factor which the firm can again utilize to help optimize forward pricing. With an European demand profile that has recently returned to normalized levels, we belove there is plenty of support for improving economic performance at Carnival.

Price vs Fair Value

CCL is trading at a 50% discount.
Price
GBX 1,078.00
Fair Value
GBX 1,558.00
Uncertainty
High
1-Star Price
GBX 8,692.00
5-Star Price
GBX 7,347.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

As Carnival continues to optimize occupancy, passenger counts and yields could rise at a faster pace than we currently anticipate.

Bears

The media accessing negative experience commentary regarding cruise incidents could weigh on Carnival's brand image and pricing leverage, making new cruisers hesitant to try cruising. A decrease in new cruisers leads to fewer repeat cruisers.

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News

Trading Information

Previous Close Price
GBX 1,097.00
Day Range
GBX 1,073.501,098.50
52-Week Range
GBX 612.001,388.00
Bid/Ask
GBX 921.00 / GBX 1,400.00
Market Cap
GBX 1.36 Tril
Volume/Avg
558,439 / 744,678

Key Statistics

Price/Earnings (Normalized)
Price/Sales
0.79
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Carnival is the largest global cruise company, with 92 ships in service at the end of fiscal 2023. Its portfolio of brands includes Carnival Cruise Lines, Holland America, Princess Cruises, and Seabourn in North America; P&O Cruises and Cunard Line in the United Kingdom; Aida in Germany; Costa Cruises in Southern Europe; and P&O Cruises in Australia. Carnival also owns Holland America Princess Alaska Tours in Alaska and the Canadian Yukon. Carnival's brands attracted nearly 13 million guests in 2019, prior to COVID-19, a level it has reached again in 2023.
Sector
Consumer Cyclical
Industry
Leisure
Stock Style Box
Large Core
Total Number of Employees
106,000

Competitors

Valuation

Metric
CCL
WH
RCL
Price/Earnings (Normalized)
20.4927.00
Price/Book Value
2.547.586.33
Price/Sales
0.794.792.37
Price/Cash Flow
6.1618.769.98
Price/Earnings
CCL
WH
RCL

Financial Strength

Metric
CCL
WH
RCL
Quick Ratio
0.260.670.10
Current Ratio
0.460.810.19
Interest Coverage
0.864.632.19
Quick Ratio
CCL
WH
RCL

Profitability

Metric
CCL
WH
RCL
Return on Assets (Normalized)
< 0.01%8.05%5.45%
Return on Equity (Normalized)
0.02%37.47%50.11%
Return on Invested Capital (Normalized)
3.63%13.44%10.28%
Return on Assets
CCL
WH
RCL
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