Morningstar

Royal Caribbean Group RCL

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Stock XNYS Rating as of
$268.73 −13.53 (4.79%)
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As of Delayed Price Pre-Open: $271.51 +2.77

Company Report

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Geopolitical Risk Leads to Near-Term Pressure, but Long-Term Fundamentals Intact at Royal Caribbean

Jaime M Katz

Consumer interest in cruise travel has maintained momentum for Royal Caribbean in 2026, exhibiting solid demand and pricing trends. Since the full redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth supersede prepandemic levels. Royal Caribbean is expected to report record pricing again in 2026 given consumer interest in new hardware and destinations which support premium prices. On the cost side, expenses (excluding fuel) should be well managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

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Price vs Fair Value

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RCL is trading at a 249% premium.
Price
$282.26
Fair Value
$392.00
Uncertainty
High
1-Star Price
$124.53
5-Star Price
$598.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

If consumer preference for experiences over things persists, yields could rise faster than we currently expect as demand rises.

Bears

Weakness in consumer spending spurred by an economic downturn could affect discretionary spending and cause pricing to soften intermittently.

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News

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Trading Information

Previous Close Price
$282.26
Day Range
$266.01–278.13
52-Week Range
$232.10–366.50
Bid/Ask
$269.00 / $275.63
Shares Outstanding
268.19M
Market Cap
$72.07B
Volume/Avg
779 / 3M

Key Statistics

Price/Earnings (Normalized)
17.07
Price/Sales
4.19
Dividend Yield (Trailing)
1.77%
Dividend Yield (Forward)
1.77%
Total Yield
4.09%

Company Profile

Royal Caribbean is the world's second-largest cruise company by revenues, operating 69 ships across five global and partner brands in the cruise vacation industry. Brands the company operates include Royal Caribbean International, Celebrity Cruises, and Silversea. The company also has a 50% investment in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. The selection of brands in the portfolio allows Royal to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. The company completed the divestiture of its Azamara brand in 2021, plans to launch its new Celebrity River Cruise brand in 2027, and is set to operate eight private destination locations by 2028.
Sector
Consumer Cyclical
Industry
Travel Services
Stock Style Box
Mid Growth
Total Number of Employees
108,000
Website
https://www.royalcaribbeangroup.com

Competitors

Valuation

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Metric
RCL
WH
NCLH
Price/Earnings (Normalized)
 17.0717.208.57
Price/Book Value
 7.7213.503.59
Price/Sales
 4.194.270.92
Price/Cash Flow
 11.8418.884.26
Price/Earnings
RCL
WH
NCLH

Financial Strength

Metric
RCL
WH
NCLH
Quick Ratio
 0.090.780.07
Current Ratio
 0.200.980.21
Interest Coverage
 5.492.741.64
Quick Ratio
RCL
WH
NCLH

Profitability

Metric
RCL
WH
NCLH
Return on Assets (Normalized)
 11.31%8.42%4.89%
Return on Equity (Normalized)
 47.97%67.81%55.55%
Return on Invested Capital (Normalized)
 16.74%14.77%12.08%
Return on Assets
RCL
WH
NCLH

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