Royal Caribbean Cruises Ltd (RCL)
Fair ValueFundamental
67
Price
$265.85
Market Cap
$64.88B
Part 1 · What the company is worth
Overview
Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of December 31, 2025, it operated 69 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$18.68B
Trailing 12 months (through 6/30/2026)
Net Income
$4.40B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$1.24B
Total Equity
$10.04B
Total Liabilities
$31.37B
Current Ratio
0.21
Interest Coverage
4.96
Debt/EBITDA
3.55
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$229.95
Current Price
$265.85
Margin of Safety
-15.6%
Fair Value Range
$149.47 - $310.43
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
16.43
ROE
42.5%
P/B Ratio
6.95
P/FCF
52.49
Gross Margin
49.1%
ROIC
12.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
12.2%
WACC
12.0%
ROIC − WACC
+0.2 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- EPS CAGR 10.92%
- Price CAGR 12.23%
- ROIC 12.2%
- Gross Margin 49.1%
- Debt/Equity ratio
- Operating Margin 27.3%
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 43.8%
- Revenue Growth 5Y 52.0%
- Analyst Consensus 69% Buy
- Earnings Surprise avg 4.0%
- Earnings Quality (OCF/NI) 1.54
- Net Margin Trend 23.5% vs 21.0%
- Piotroski F-Score 7/9
Failed (7)
- P/FCF 52.49
- P/B Ratio 6.95
- Positive Free Cash Flow
- Current Ratio
- Price below Graham Number
- DCF valuation (Overvalued)
- Share Dilution 4.0%
Unavailable (3)
- Dividend Payout NaN%
- CapEx intensity
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
No institutional filings reported for this company.
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Jason T. Liberty | CEO & Chairman | - |
| Mr. Naftali Holtz | Executive VP & CFO | 47 |
| Mr. Harri U. Kulovaara | Executive Vice President of Newbuilding | 72 |
| Mr. Michael W. Bayley | President & CEO of Royal Caribbean | 66 |
| Ms. Laura J. Hodges Bethge | President of Celebrity Cruises | 50 |
| Mr. Henry L. Pujol | Senior VP & Chief Accounting Officer | 57 |
| Ms. Martha Cecilia Poulter | Senior VP & Chief Information Officer | 58 |
| Ms. Dana Ritzcovan | Executive Vice President and Chief People & Administrative Officer | - |
| Mr. Blake Vanier | Vice President of Investor Relations | - |
| Mr. Robert Alexander Lake Jr. | Senior VP, Chief Legal Officer & Secretary | 53 |
Audit Risk
6
Board Risk
7
Compensation Risk
7
Shareholder Rights Risk
9
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-11
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-28
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-23
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for RCL, sourced from Markets Gazette.
- 8d agoNEUTRALRoyal Caribbean Teams with Sandals, Morgan Stanley Addresses Deals Leak
Royal Caribbean Cruises Ltd. is mentioned in a news segment discussing corporate transactions, alongside a partnership with Sandals and a deal leak addressed by Morgan Stanley. The program features insights from M&A experts at JPMorgan and Weil, Gotshal & Manges. While the specific details of the Royal Caribbean partnership or the Morgan Stanley deal leak are not elaborated upon, the context suggests a focus on significant corporate activity. Investors should monitor for further disclosures regarding these transactions, as they could impact the company's strategic positioning and financial performance.
- 8d agoPOSITIVERoyal Caribbean Buys Stake in Sandals Resorts
Royal Caribbean Cruises has announced a strategic move to acquire a 50% stake in Sandals Resorts International for approximately $3 billion. This significant investment positions Royal Caribbean to expand its footprint within the all-inclusive resort sector, potentially enhancing its integrated travel offerings. The deal is expected to leverage synergies between the cruise line's extensive customer base and Sandals' established resort brand, aiming to create a more comprehensive vacation experience. Investors will be watching for the integration progress and its impact on future earnings and market share.
- 7/28/2026NEGATIVERoyal Caribbean (RCL) Lowers Yield Forecast as Middle East Turmoil Hits Bookings
Royal Caribbean Cruises Ltd. has revised its yield forecast downwards, citing a "modest" impact on bookings stemming from ongoing geopolitical turmoil. This adjustment signals potential headwinds for the cruise line operator as international instability affects consumer travel decisions. Investors will be monitoring future booking trends and management's strategies to mitigate these external pressures. The company's ability to navigate these challenges will be crucial for its near-term financial performance and stock valuation.
- 7/28/2026POSITIVERoyal Caribbean Upbeat on European Sailings Amid Iran War
Royal Caribbean Cruises Ltd. reported robust demand for its European itineraries, signaling resilience despite geopolitical tensions in the Middle East. The company indicated that ongoing conflicts have not significantly impacted bookings for its lucrative Mediterranean sailings. This positive outlook suggests that consumer confidence for leisure travel remains strong, particularly for established cruise lines. Investors may view this as a sign of the company's ability to navigate external risks and maintain its revenue streams, potentially leading to upward price adjustments for the stock.
- 6/18/2026POSITIVEHere's How Much $1000 Invested In Royal Caribbean Group 5 Years Ago Would Be Worth Today
An investment of $1000 in Royal Caribbean Group (RCL) five years ago would have grown to approximately $3,140 today, representing a substantial 214% return. This performance significantly outpaced the broader market, highlighting the cruise line's strong recovery and growth trajectory post-pandemic. The company has benefited from robust consumer demand for travel and effective capacity management. For investors, this demonstrates the potential for significant capital appreciation in well-managed companies within the leisure and travel sector, even after periods of significant disruption.
- 6/11/2026POSITIVEHere's How Much $100 Invested In Royal Caribbean Group 5 Years Ago Would Be Worth Today
An investment of $100 in Royal Caribbean Group five years ago would have yielded a substantial return, growing to approximately $385 today. This represents a compound annual growth rate of roughly 31.5%. The cruise line operator has seen significant recovery and growth post-pandemic, driven by strong consumer demand for travel and effective capacity management. Investors who held RCL stock during this period have benefited from the company's robust financial performance and strategic initiatives aimed at enhancing shareholder value.
- 5/18/2026NEGATIVERoyal Caribbean Slides After Mexico Reviews Water Park Plan
Royal Caribbean Cruises Ltd. (RCL) experienced a share price decline following an announcement by Mexican President Claudia Sheinbaum. The President has initiated a review of the cruise line operator's proposed water park project located in the Quintana Roo state. This regulatory scrutiny introduces uncertainty and potential delays or modifications to the project, which could impact future revenue streams and operational expansion plans for the company. Investors are likely to react cautiously to this news, awaiting further clarity on the review's outcome.
- 5/13/2026POSITIVE$1000 Invested In Royal Caribbean Group 15 Years Ago Would Be Worth This Much Today
An investment of $1000 in Royal Caribbean Group (RCL) 15 years ago would have yielded a substantial return, illustrating the company's strong performance and growth trajectory over the past decade and a half. This historical performance indicates robust operational execution, effective management strategies, and favorable market conditions within the cruise industry. For current and potential investors, this data point underscores Royal Caribbean's capacity for significant shareholder value creation and its resilience in a dynamic travel sector.
- 4/30/2026POSITIVERoyal Caribbean CEO Sees Robust Demand Despite Risks
Royal Caribbean CEO Jason Liberty expressed optimism regarding the cruise operator's future, citing robust demand that remains unaffected by current geopolitical risks. This positive outlook follows a strong earnings report and an upward revision to the company's full-year forecast. Liberty's comments suggest that consumer appetite for travel and leisure experiences is resilient, providing a solid foundation for continued growth. Investors may view this as a signal of sustained revenue generation and profitability, potentially leading to increased confidence in the stock.
via Markets Gazette