Royal Caribbean Cruises Stock Buy Hold or Sell Recommendation
| RCL Stock | USD 127.97 1.37 1.08% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Royal Caribbean Cruises is 'Sell'. Macroaxis provides Royal Caribbean buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RCL positions. The advice algorithm takes into account all of Royal Caribbean's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Royal Caribbean's buy or sell advice are summarized below:
Real Value 125.1 | Target Price 123.07 | Hype Value 126.47 | Market Value 127.97 | Naive Value 122.86 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Royal Caribbean Cruises given historical horizon and risk tolerance towards Royal Caribbean. When Macroaxis issues a 'buy' or 'sell' recommendation for Royal Caribbean Cruises, the advice is generated through an automated system that utilizes algorithms and statistical models.
Royal |
Execute Royal Caribbean Buy or Sell Advice
The Royal recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Royal Caribbean Cruises. Macroaxis does not own or have any residual interests in Royal Caribbean Cruises or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Royal Caribbean's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Royal Caribbean Trading Alerts and Improvement Suggestions
| The company has 22.13 B in debt with debt to equity (D/E) ratio of 7.47, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Royal Caribbean Cruises has a current ratio of 0.28, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Royal Caribbean until it has trouble settling it off, either with new capital or with free cash flow. So, Royal Caribbean's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Royal Caribbean Cruises sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Royal to invest in growth at high rates of return. When we think about Royal Caribbean's use of debt, we should always consider it together with cash and equity. | |
| Royal Caribbean has a strong financial position based on the latest SEC filings | |
| Over 81.0% of Royal Caribbean shares are owned by institutional investors | |
| Latest headline from benzinga.com: Royal Caribbean Gr Unusual Options Activity For April 16 |
Royal Caribbean Returns Distribution Density
The distribution of Royal Caribbean's historical returns is an attempt to chart the uncertainty of Royal Caribbean's future price movements. The chart of the probability distribution of Royal Caribbean daily returns describes the distribution of returns around its average expected value. We use Royal Caribbean Cruises price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Royal Caribbean returns is essential to provide solid investment advice for Royal Caribbean.
| Mean Return | 0.06 | Value At Risk | -3.31 | Potential Upside | 3.08 | Standard Deviation | 1.92 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Royal Caribbean historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Royal Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Royal Caribbean is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Royal Caribbean Cruises backward and forwards among themselves. Royal Caribbean's institutional investor refers to the entity that pools money to purchase Royal Caribbean's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital World Investors | 2023-12-31 | 2.6 M | Citadel Advisors Llc | 2023-09-30 | 2.6 M | Norges Bank | 2023-12-31 | 2.5 M | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 2.3 M | Northern Trust Corp | 2023-12-31 | 2.3 M | Amvescap Plc. | 2023-12-31 | 2.2 M | Nuveen Asset Management, Llc | 2023-12-31 | 1.7 M | T. Rowe Price Associates, Inc. | 2023-12-31 | 1.6 M | Renaissance Technologies Corp | 2023-12-31 | 1.5 M | Capital Research Global Investors | 2023-12-31 | 29.8 M | Capital Research & Mgmt Co - Division 3 | 2023-12-31 | 29.3 M |
Royal Caribbean Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (8.5M) | 27.1M | (34.5M) | (73.8M) | (24M) | (22.8M) | |
| Change In Cash | (44.1M) | 3.4B | (982.7M) | (766.8M) | (1.4B) | (1.4B) | |
| Free Cash Flow | 691.7M | (5.7B) | (4.1B) | (2.2B) | 580M | 609M | |
| Depreciation | 1.2B | 1.3B | 1.3B | 1.4B | 1.5B | 1.5B | |
| Other Non Cash Items | 34.5M | 2.1B | 587.5M | 243.3M | 18M | 17.1M | |
| Capital Expenditures | 3.0B | 2.0B | 2.2B | 2.7B | 3.9B | 4.1B | |
| Net Income | 1.9B | (5.8B) | (5.3B) | (2.2B) | 1.7B | 1.8B | |
| End Period Cash Flow | 243.7M | 3.7B | 2.7B | 1.9B | 497M | 501.6M | |
| Investments | (53.9M) | (225.0M) | (2.1B) | (3.0B) | (1.5B) | (1.4B) | |
| Change Receivables | (9.9M) | 121.1M | (181.7M) | (234.3M) | (210.9M) | (200.4M) | |
| Net Borrowings | 42.4M | 8.3B | 1.8B | 1.8B | 2.0B | 1.1B | |
| Change To Netincome | (124.0M) | 358.6M | 359.6M | 151.6M | 174.4M | 124.1M |
Royal Caribbean Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Royal Caribbean or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Royal Caribbean's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Royal stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.01 | |
β | Beta against NYSE Composite | 1.27 | |
σ | Overall volatility | 1.93 | |
Ir | Information ratio | -0.0007 |
Royal Caribbean Volatility Alert
Royal Caribbean Cruises has relatively low volatility with skewness of 0.4 and kurtosis of 1.64. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Royal Caribbean's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Royal Caribbean's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Royal Caribbean Implied Volatility
Royal Caribbean's implied volatility exposes the market's sentiment of Royal Caribbean Cruises stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Royal Caribbean's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Royal Caribbean stock will not fluctuate a lot when Royal Caribbean's options are near their expiration.
Royal Caribbean Fundamentals Vs Peers
Comparing Royal Caribbean's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Royal Caribbean's direct or indirect competition across all of the common fundamentals between Royal Caribbean and the related equities. This way, we can detect undervalued stocks with similar characteristics as Royal Caribbean or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Royal Caribbean's fundamental indicators could also be used in its relative valuation, which is a method of valuing Royal Caribbean by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Royal Caribbean to competition |
| Fundamentals | Royal Caribbean | Peer Average |
| Return On Equity | 0.44 | -0.31 |
| Return On Asset | 0.0525 | -0.14 |
| Profit Margin | 0.12 % | (1.27) % |
| Operating Margin | 0.17 % | (5.51) % |
| Current Valuation | 54.45 B | 16.62 B |
| Shares Outstanding | 256.65 M | 571.82 M |
| Shares Owned By Insiders | 7.95 % | 10.09 % |
| Shares Owned By Institutions | 80.93 % | 39.21 % |
| Number Of Shares Shorted | 15.36 M | 4.71 M |
| Price To Earning | 65.20 X | 28.72 X |
| Price To Book | 6.94 X | 9.51 X |
| Price To Sales | 2.36 X | 11.42 X |
| Revenue | 13.9 B | 9.43 B |
| Gross Profit | 2.38 B | 27.38 B |
| EBITDA | 4.34 B | 3.9 B |
| Net Income | 1.7 B | 570.98 M |
| Cash And Equivalents | 1.94 B | 2.7 B |
| Cash Per Share | 6.14 X | 5.01 X |
| Total Debt | 22.13 B | 5.32 B |
| Debt To Equity | 7.47 % | 48.70 % |
| Current Ratio | 0.29 X | 2.16 X |
| Book Value Per Share | 18.42 X | 1.93 K |
| Cash Flow From Operations | 4.48 B | 971.22 M |
| Short Ratio | 6.35 X | 4.00 X |
| Earnings Per Share | 6.28 X | 3.12 X |
| Price To Earnings To Growth | 0.59 X | 4.89 X |
| Target Price | 148.0 | |
| Number Of Employees | 98.1 K | 18.84 K |
| Beta | 2.53 | -0.15 |
| Market Capitalization | 32.64 B | 19.03 B |
| Total Asset | 35.13 B | 29.47 B |
| Retained Earnings | (10 M) | 9.33 B |
| Working Capital | (7.61 B) | 1.48 B |
Note: Royal Caribbean exotic insider transaction detected [view details]
Royal Caribbean Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Royal . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Royal Caribbean Buy or Sell Advice
When is the right time to buy or sell Royal Caribbean Cruises? Buying financial instruments such as Royal Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 21.7B | 24.0B | 22.1B | 23.2B | Total Assets | 32.3B | 33.8B | 35.1B | 36.9B |
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Check out Royal Caribbean Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Royal Caribbean Cruises information on this page should be used as a complementary analysis to other Royal Caribbean's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Complementary Tools for Royal Stock analysis
When running Royal Caribbean's price analysis, check to measure Royal Caribbean's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Royal Caribbean is operating at the current time. Most of Royal Caribbean's value examination focuses on studying past and present price action to predict the probability of Royal Caribbean's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Royal Caribbean's price. Additionally, you may evaluate how the addition of Royal Caribbean to your portfolios can decrease your overall portfolio volatility.
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Is Royal Caribbean's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Royal Caribbean. If investors know Royal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Royal Caribbean listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 27.254 | Earnings Share 6.28 | Revenue Per Share 54.297 | Quarterly Revenue Growth 0.28 | Return On Assets 0.0525 |
The market value of Royal Caribbean Cruises is measured differently than its book value, which is the value of Royal that is recorded on the company's balance sheet. Investors also form their own opinion of Royal Caribbean's value that differs from its market value or its book value, called intrinsic value, which is Royal Caribbean's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Royal Caribbean's market value can be influenced by many factors that don't directly affect Royal Caribbean's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Royal Caribbean's value and its price as these two are different measures arrived at by different means. Investors typically determine if Royal Caribbean is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Royal Caribbean's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.