Royal Caribbean Group (RCL)
Consumer Discretionary · $63.0B market cap · SEC CIK 0000884887
fundamentals score out of 100
Next reports on Oct 26, 2026, before the open, with analysts expecting $6.38 in earnings per share.
The case for RCL
- Earns 44% back on shareholder equity.
- 24% of revenue drops through to net profit.
- Revenue growing 8.7% year over year.
- Reasonably priced at 14.3× earnings.
- A PEG of 0.64: a P/E of 14.3× is low for EPS growing 22%.
- Has compounded revenue at 52.0% a year over five years.
The case against
- Down 23.8% over the past year.
- Swings harder than the market (beta 1.93).
- Growth is slowing: revenue up 8.7% this year against 52.0% a year over five.
- Only 29% of FY2025's $4.3B profit arrived as free cash.
- Current liabilities exceed current assets (ratio 0.21).
- Near the bottom of its 52-week range, 34% below the high. Falling prices usually have a reason; find it first.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 50 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 83 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 71 |
| Momentumhow the price has behaved lately | 13 |
| Stabilityhow violently it moves, what it owes and what it pays you | 31 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 14.3× |
|---|---|
| Price / book | 8.32× |
| Price / sales | 3.4× |
| Revenue growth (YoY) | +8.7% |
| EPS growth (YoY) | +22.4% |
| Gross margin | 50% |
| Operating margin | 27% |
| Net margin | 24% |
| Return on equity | 44% |
| Debt / equity | 2.23× |
| Current ratio | 0.21 |
| Dividend yield | 1.83% |
| Beta | 1.93 |
| 52-week range | $232.10 – $356.39 |
| Position in that range | 2% of the way up |
| 3-month return | -19.9% |
| 1-year return | -23.8% |
Five years of financials, as filed
Pulled from Royal Caribbean Group's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $17.9B | $16.5B | $13.9B | $8.8B | $1.5B |
| Operating income | $4.9B | $4.1B | $2.9B | -$766M | -$3.9B |
| Net income | $4.3B | $2.9B | $1.7B | -$2.2B | -$5.3B |
| Operating cash flow | $6.5B | $5.3B | $4.5B | $481M | -$1.9B |
| Capital expenditure | $5.2B | $3.3B | $3.9B | $2.7B | $2.2B |
| Total assets | $41.6B | $37.1B | $35.1B | $33.8B | $32.3B |
| Total liabilities | $31.4B | $29.3B | $30.2B | $30.9B | $27.2B |
| Shareholder equity | $10.0B | $7.6B | $4.7B | $2.9B | $5.1B |
| Cash | $825M | $388M | $497M | $1.9B | $2.7B |
| Free cash flow | $1.2B | $2.0B | $580M | -$2.2B | -$4.1B |
| Operating margin | 27.4% | 24.9% | 20.7% | -8.7% | -252.6% |
| Net margin | 23.8% | 17.5% | 12.2% | -24.4% | -343.4% |
| Diluted shares | 274M | 279M | 283M | 255M | 252M |
Share count is up 8.7% over 4 years. Mild issuance.
What Royal Caribbean Group says it does
Information regarding our cruise ships under construction, estimated expenditures and financing may be found within the Future Capital Commitments and Funding Needs and Sources sections of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Our principal executive office and principal shoreside operations are located in leased office buildings at the Port of Miami, Florida. We also lease a number of other offices in the U.S. and throughout Europe, Asia, Mexico, South America, Caribbean and Australia to administer our brand operations globally. We believe that our facilities are adequate for our current needs and that we are capable of obtaining additional facilities as necessary. We also operate three exclusive private destinations which we utilize as ports-of-call on certain itineraries: (i) an island we own in the Bahamas that we call Perfect Day at CocoCay; (ii) Labadee, a secluded…
Risk factors RCL lists in its 10-K
- We are exposed to cyber security attacks and data breaches and the risks and costs associated with protecting our systems and maintaining data integrity and security"
- Travel advisor relationships, consumer outreach, and e-commerce
- Guest Services and Loyalty Programs
- Year Ship Entered/Will Enter Service
- Selected Operational and Financial Metrics
- Management’s Discussion and Analysis of Financial Condition and Results of Operations
- Passengers Carried, Passenger Cruise Days, Available Passenger Cruise Days
- Onboard Activities and Other Revenues
- Financial Statements and Supplementary Data,
- U.S. Shoreside Representation by Ethnicity
- % of Total U.S. Shoreside Population
- U.S. Federal and State Regulations
- Consumer Financial Responsibility Regulations
- A change in our tax status under United Kingdom tonnage tax, the U.S. Internal Revenue Code, or other jurisdictions, may have adverse effects on our results of operations