Royal Caribbean Group (RCL)

Consumer Discretionary · $90.9B market cap · SEC CIK 0000884887

Next reports on Jan 27, 2027, after the close, with analysts expecting $3.59 in earnings per share.

52-week range $222.22 to $356.39. 5% below its 52-week high and 53% above its low.

The case for RCL

• Cheap for its growth: 20.0× earnings, where 25%+ a year of growth would justify about 46×.
• Earns 44% back on shareholder equity.
• 24% of revenue drops through to net profit.
• Revenue growing 9.7% year over year.
• Has compounded revenue at 52.0% a year over five years.
• Pays a modest 1.5% dividend.

The case against

• Growth is slowing: revenue up 9.7% 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 0.22).
• Swings harder than the market (beta 1.87).
• Free cash flow is only 1.4% of its market value, a thin cash return for the price.
• Long-term debt of $18.2B against $825M of cash.

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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.

The financials

The financials, five years deep

Pulled from Royal Caribbean Group's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Royal Caribbean Group says it does

We are a vacation industry leader, owning and operating three global cruise vacation brands: Royal Caribbean, Celebrity Cruises and Silversea (collectively, our "Global Brands"). We also own a 50% joint venture interest in TUI Cruises GmbH ("TUIC"), which operates the German brands TUI Cruises and Hapag-Lloyd Cruises (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. Together, our Global Brands and our Partner Brands have a combined fleet of 69 ships in the cruise vacation industry with an aggregate capacity of approximately 179,720 berths as of December 31, 2025. Our ships offer a selection of worldwide itineraries that call on more than 1,000 destinations on all seven continents. We also own a growing portfolio of private land-based destinations, including our Perfect Day and Royal Beach Club collections. Our competitive edge is grounded in our focus on…

Risk factors RCL lists in its 10-K

• Our operating costs could increase due to market forces and economic or geopolitical factors beyond our control
• Terrorist attacks, war, and other similar events could have a material adverse impact on our business and results of operations
• Disease outbreaks or an increase in concern about the risk of illness could adversely impact our business and results of operations, and may cause significant disruptions, create new risks, and exacerbate existing risks
• Significant weather, climate events and/or natural disasters could adversely impact our business and results of operations
• Our sustainability activities, including initiatives to sustain our planet, energize communities and accelerate innovation, could result in reputational risks, increased costs and other risks
• Our reliance on shipyards, their subcontractors and our suppliers to implement our newbuild and ship upgrade programs and to repair and maintain our ships exposes us to risks which could adversely impact our business
• An increase in capacity worldwide or excess capacity in a particular market could adversely impact our cruise sales and/or pricing
• We may lose business to competitors throughout the vacation market
• If we are unable to appropriately manage our cost and capital allocation strategies with our goal of satisfying guest expectations, it may adversely impact our business success
• Our expansion into new markets and investments in new ventures and land-based destination projects may not be successful
• Our reliance on travel advisors to sell and market our cruises exposes us to certain risks which could adversely impact our business
• Business activities that involve our co-investments with third parties may subject us to additional risks
• Past or potential acquisitions that we may decide to pursue in the future carry inherent risks which could adversely impact our financial performance and condition
• Disruptions in our shoreside or shipboard operations or our information systems may adversely affect our results of operations
• Provisions of our Articles of Incorporation, By-Laws and Liberian law could inhibit a change of control and may prevent efforts by our shareholders to change our management
• We may not be able to obtain sufficient financing or capital for our needs or may not be able to do so on terms that are acceptable or consistent with our expectations
• Our liquidity could be adversely impacted if we are unable to satisfy the covenants required by our credit facilities
• There can be no assurance that we will declare or pay dividends in the future or that we will repurchase shares pursuant to our share repurchase program consistent with historical amounts or at all
• Changes in U.S. or other countries’ foreign travel policy have affected, and may continue to affect our results of operations
• Factors associated with climate change, including an increasing global regulatory focus, could adversely affect our business
• Labor, health and safety, financial responsibility, maritime and other regulations and measures could affect operations and increase operating costs
• A change in our tax status under the United Kingdom tonnage tax, the U.S. Internal Revenue Code, or other jurisdictions, may have adverse effects on our results of operations
• We are not a U.S. corporation and, as a result, our shareholders may be subject to the uncertainties of a foreign legal system in protecting their interests
• Conducting business globally results in increased regulatory, financial, and other risks
• Fluctuations in foreign currency exchange rates, fuel prices and interest rates could affect our financial results
• Impairment of our goodwill, intangible assets, long-lived assets, equity investments and notes receivable could adversely affect our financial condition and operating results
• The loss of key personnel, our inability to recruit or retain qualified personnel, or disruptions among our shipboard personnel could adversely affect our results of operations
• If we are unable to keep pace with developments, design, and implementation in technology
• , our operations or competitive position could become impaired. Our use of emerging technologies, including artificial intelligence, may present business, compliance and reputational risks
• We are exposed to cybersecurity attacks and data breaches and the risks and costs associated with protecting our systems and maintaining data integrity and security
• Litigation, enforcement actions, fines or penalties could adversely impact our financial condition or results of operations and/or damage our reputation

Filings

Other Consumer Discretionary companies