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RCL

S&P 500
Favorable · 66/100

Royal Caribbean Group

Consumer Discretionary
Hotels, Resorts & Cruise Lines

$309.36

1.0%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 16.7% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$83.81B

P/E

18.76x

Forward P/E (est.)

13.61x

ROE

45.8%

Revenue Growth

9.8%

EPS Growth

37.9%

Profit Margin

24.4%

FCF Yield

2.8%

Debt / Equity

2.13x

ROIC

24.0%

Interest Coverage

3.5x

Current Ratio

0.2x

Dividend Yield

1.6%

Implied Growth (rev. DCF)

7.4%

Rating Score

66/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what RCL's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. RCL trades near $309.36, above its 50-day average ($274.73) and 200-day average ($290.34). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 61 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. RCL's is $14.51 (~4.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month RCL found buyers near $244.86 (support) and sellers near $319.45 (resistance); its 52-week range is $232.10–$366.50. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.3× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Royal Caribbean Group (RCL) is a large-cap company in the Hotels, Resorts & Cruise Lines industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $83.81B.

In its latest reported year it generated about $17.93B in revenue and $4.27B in net profit.

Our model rates RCL Favorable (66/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

85.0%

Revenue moved from $1.53B in 2021 to $17.93B in 2025, a 85.0% compound annual growth rate. The most recent year grew a steady 9.8% year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

50.5%

Operating Margin

27.4%

Net Margin

23.8%

ROE

45.8%

Royal Caribbean Group keeps about 24.4% of each sales dollar as net profit, with a 50.5% gross margin and 27.4% operating margin. Return on equity is 45.8% and return on invested capital about 24.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research

Total Debt

$6.20B

Net Debt

$5.69B

Net Debt / EBITDA

1.16x

Debt / Equity

2.13x

Leverage: debt-to-equity is 2.1x, and operating profit covers interest about 3.5x, with a current ratio of 0.2x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $6.20B of total debt against $512.00M of cash.

Cash Flow Analysis
Research

Operating CF

$6.46B

Free Cash Flow

$1.24B

FCF Margin

6.9%

In the latest year Royal Caribbean Group produced about $6.46B of operating cash flow and $1.24B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.8% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

18.76x

P/S

4.69x

P/B

7.57x

EV / EBITDA

13.52x

RCL trades at 18.8x trailing earnings (about 13.6x on estimated forward earnings), 4.7x sales, and 7.6x book value. Reverse-engineering today's price implies the market expects roughly 7.4% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
18.8xFair
Forward P/E
13.6xCheap
P/S ratio
4.7xExpensive
Revenue growth
9.8%Strong
EPS growth
37.9%Strong
Gross margin
50.5%Strong
Net margin
24.4%Strong
ROE
45.8%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How RCL stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.

In the Consumer Discretionary sector (48 S&P 500 companies), RCL ranks #7 of 48 by our overall rating. It trades at a discount versus the sector on earnings (18.8x P/E vs. 23.7x median) with a higher return on equity (45.8% vs. 39.2%) and faster revenue growth (9.8% vs. 6.2%).

P/E vs sector

18.8x

median 23.7x

ROE vs sector

45.8%

median 39.2%

Growth vs sector

9.8%

median 6.2%

Sector rank

#7

of 48 by rating

CompanyP/ERev Gr.Rating
RCLThis stock18.8x9.8%Favorable· 66
ABNB33.6x12.6%Favorable· 66
HLT51.5x8.7%Weak· 39
MAR40.3x4.7%Weak· 38
BKNG21.6x14.9%Favorable· 68
CCL13.5x6.1%Neutral· 54
EXPE19.4x10.0%Favorable· 59
NCLH16.5x6.5%Neutral· 45
Consumer Discretionary median23.7x6.2%54/100

Valuation vs. quality map

sector medianABNBHLTMARBKNGCCLEXPENCLHRCLP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 48 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$284.33$491.11

vs. $309.36 today · expected CAGR -2%10%

Metric20262027202820292030
Revenue$19.73B$21.70B$23.87B$26.26B$28.88B
Net income$4.73B$5.21B$5.73B$6.30B$6.93B
EPS$17.65$19.42$21.36$23.50$25.85
Share price (low)$194.20$213.62$234.98$258.48$284.33
Share price (high)$335.43$368.98$405.88$446.46$491.11
CAGR (low–high)-37% / 8%-17% / 9%-9% / 9%-4% / 10%-2% / 10%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for RCL:

  • High net margins (24.4%) point to pricing power or efficiency.
  • Strong return on equity (45.8%) shows capital is put to work well.
  • Our model's overall read is Favorable (66/100).
Bear Case

The case against RCL:

  • Elevated leverage (debt/equity 2.1x) adds financial risk.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Balance-sheet risk — debt/equity of 2.1x magnifies the impact of higher rates or weaker earnings.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Royal Caribbean Group is a large-cap consumer discretionary business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 18.8x earnings, which our model scores Favorable (66/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.