Stock of the Day

Royal Caribbean Cruises (RCL)

$274.16

+$2.76 (+1.0%)

Market Cap: $74.34B

About Royal Caribbean Cruises

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 February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

Royal Caribbean Cruises Bull Case

Here are some ways that investors could benefit from investing in Royal Caribbean Cruises Ltd.:

• The current stock price is around $256, reflecting a positive trend in the company's market performance.
• Royal Caribbean Cruises Ltd. reported a significant increase in earnings per share, surpassing analysts' expectations, indicating strong financial health.
• The company has a robust market capitalization of approximately $69.55 billion, showcasing its stability and growth potential in the cruise industry.
• Recent institutional investments, including a notable increase in holdings by Brown Brothers Harriman & Co., suggest growing confidence among major investors.
• The company has initiated a share repurchase plan, which often signals that the board believes the stock is undervalued, potentially benefiting existing shareholders.

Royal Caribbean Cruises Bear Case

Investors should be bearish about investing in Royal Caribbean Cruises Ltd. for these reasons:

• The company has a high debt-to-equity ratio of 2.39, indicating that it relies heavily on debt financing, which can be risky in volatile markets.
• Despite recent gains, the stock has experienced fluctuations, with a one-year high of $277.08 and a low of $130.08, suggesting potential volatility.
• Insider transactions, including significant stock sales by directors, may raise concerns about the company's future prospects and insider confidence.
• The quick ratio of 0.15 and current ratio of 0.17 indicate potential liquidity issues, which could affect the company's ability to meet short-term obligations.
• While the company has a dividend yield of 1.17%, the payout ratio of 24.92% suggests limited room for dividend growth, which may not attract income-focused investors.

Recent News

• ROYAL CARIBBEAN GROUP ANNOUNCES BOARD LEADERSHIP TRANSITION PLANS (prnewswire.com)
• Norwegian and Other Cruise Stocks Stage a Recovery. Why There's Smoother Sailing Ahead. (barrons.com)
• INTRODUCING THE STAR OF STAR OF THE SEAS: ROYAL CARIBBEAN NAMES DIANA ROSS GODMOTHER (prnewswire.com)
• Royal Caribbean confirms its working on new, smaller ship class (yahoo.com)
• Royal Caribbean Cruises: Best In Class (seekingalpha.com)
• Travel and Vacation Providers Stocks Q1 Recap: Benchmarking Royal Caribbean (NYSE:RCL) (msn.com)