Royal Caribbean Cruises Stock Analysis, Valuation (NYSE:RCL)
View the Royal Caribbean Cruises stock analysis video on Amigobulls. Our RCL analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Royal Caribbean Cruises Ltd Stock Rating 3.4/5
Amigobulls RCL stock analysis uses latest quarter 2018 Q2 financial data like Royal Caribbean Cruises revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Royal Caribbean Cruises valuation analysis. Royal Caribbean Cruises stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy RCL stock?
- Royal Caribbean Cruises had a healthy average operating margin of 19.76 over the last 4 quarters.
- Net margins came in at average 18.5% for Royal Caribbean Cruises over the last twelve months.
- The company has an operating cash flow which is 4.2264 times the net income. We see this as a positive signal.
- RCL stock is trading at an earnings multiple of 14.1 which is better than the sector average of 21.
- Royal Caribbean Cruises has an attractive ROIC (Return on Invested Capital) of 9.3
- Royal Caribbean Cruises has a good Return On Equity (ROE) of 16.1.
Should you sell RCL stock?
- Long term revenue growth of 2.5 over the past 5 years has been disappointing.
- RCL stock is trading at a PS multiple of 2.7, which is a negative when compared to the Consumer Discretionary sector average multiple of 1.6.
- Royal Caribbean Cruises has a negative FCF (Free Cash Flow) margin of -39.3.
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Amigobulls Royal Caribbean Cruises stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of RCL stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
While doing a study of the company financials, Royal Caribbean Cruises revenue growth and profit or net income are two main metrics which help in identifying whether RCL stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about RCL stock.