Royal Caribbean International is a major global cruise line headquartered in Miami and originally founded in 1968. Today it's the world's largest cruise line by revenue.
Royal Caribbean Cruises (RCL) shares have dropped recently as a result of the coronavirus outbreak, which has affected the tourism and cruise industries. This could mean the current Royal Caribbean Cruises (RCL) share price is a potential buying opportunity for higher-risk investors who think the company is now undervalued.
How to buy shares in Royal Caribbean Cruises
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Royal Caribbean Cruises. Find the share by name or ticker symbol: RCL. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Royal Caribbean Cruises reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$61.24, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Royal Caribbean Cruises, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Royal Caribbean Cruises. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Royal Caribbean Cruises key stats
- Compare share trading platforms
- Is Royal Caribbean Cruises stock a buy or sell?
- Royal Caribbean Cruises performance over time
- Can I short Royal Caribbean Cruises shares?
- Is Royal Caribbean Cruises suitable for ethical investing?
- Are Royal Caribbean Cruises shares over-valued?
- Royal Caribbean Cruises's financials
- How volatile are Royal Caribbean Cruises shares?
- Does Royal Caribbean Cruises pay a dividend?
- Have Royal Caribbean Cruises shares ever split?
- Other common questions
How has coronavirus impacted Royal Caribbean Cruises's share price?
Since the stock market crash in March caused by coronavirus, Royal Caribbean Cruises's share price has had significant negative movement.
Its last market close was US$61.24, which is 42.29% down on its pre-crash value of US$106.11 and 218.13% up on the lowest point reached during the March crash when the shares fell as low as US$19.25.
If you had bought US$1,000 worth of Royal Caribbean Cruises shares at the start of February 2020, those shares would have been worth US$242.15 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$526.05.
Royal Caribbean Cruises share priceUse our graph to track the performance of RCL stocks over time.
Royal Caribbean Cruises shares at a glance
|Latest market close||USD$61.24|
|52-week range||USD$19.25 - USD$135.315|
|50-day moving average||USD$63.1097|
|200-day moving average||USD$49.6416|
|Dividend yield||USD$3.12 (4.54%)|
|Earnings per share (TTM)||USD$0.879|
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Is it a good time to buy Royal Caribbean Cruises stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Royal Caribbean Cruises price performance over time
|1 week (2020-09-14)||-13.67%|
|1 month (2020-08-24)||-4.95%|
|3 months (2020-06-24)||26.95%|
|6 months (2020-03-24)||77.66%|
|1 year (2019-09-20)||-45.16%|
|2 years (2018-09-21)||-53.42%|
|3 years (2017-09-21)||-47.29%|
|5 years (2015-09-21)||-37.00%|
Is Royal Caribbean Cruises under- or over-valued?
Valuing Royal Caribbean Cruises stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Royal Caribbean Cruises's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Royal Caribbean Cruises's P/E ratio
Royal Caribbean Cruises's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 57x. In other words, Royal Caribbean Cruises shares trade at around 57x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Royal Caribbean Cruises's PEG ratio
Royal Caribbean Cruises's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.3105. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Royal Caribbean Cruises's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Royal Caribbean Cruises's EBITDA
Royal Caribbean Cruises's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$1.2 billion (£0.0 million).
The EBITDA is a measure of a Royal Caribbean Cruises's overall financial performance and is widely used to measure a its profitability.
Royal Caribbean Cruises financials
|Revenue TTM||US$7.9 billion|
|Gross profit TTM||US$5.1 billion|
|Return on assets TTM||-0.23%|
|Return on equity TTM||-17.54%|
|Market capitalisation||US$14.1 billion|
TTM: trailing 12 months
Shorting Royal Caribbean Cruises shares
There are currently 19.7 million Royal Caribbean Cruises shares held short by investors – that's known as Royal Caribbean Cruises's "short interest". This figure is 8.6% down from 21.5 million last month.
There are a few different ways that this level of interest in shorting Royal Caribbean Cruises shares can be evaluated.
Royal Caribbean Cruises's "short interest ratio" (SIR)
Royal Caribbean Cruises's "short interest ratio" (SIR) is the quantity of Royal Caribbean Cruises shares currently shorted divided by the average quantity of Royal Caribbean Cruises shares traded daily (recently around 9.8 million). Royal Caribbean Cruises's SIR currently stands at 2.01. In other words for every 100,000 Royal Caribbean Cruises shares traded daily on the market, roughly 2010 shares are currently held short.
However Royal Caribbean Cruises's short interest can also be evaluated against the total number of Royal Caribbean Cruises shares, or, against the total number of tradable Royal Caribbean Cruises shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Royal Caribbean Cruises's short interest could be expressed as 0.09% of the outstanding shares (for every 100,000 Royal Caribbean Cruises shares in existence, roughly 90 shares are currently held short) or 0.1118% of the tradable shares (for every 100,000 tradable Royal Caribbean Cruises shares, roughly 112 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Royal Caribbean Cruises.
Find out more about how you can short Royal Caribbean Cruises stock.
Royal Caribbean Cruises's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Royal Caribbean Cruises.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Royal Caribbean Cruises's total ESG risk score
Total ESG risk: 19.95
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Royal Caribbean Cruises's overall score of 19.95 (as at 07/31/2020) is pretty good – landing it in it in the 29th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Royal Caribbean Cruises is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Royal Caribbean Cruises's environmental score
Environmental score: 7/100
Royal Caribbean Cruises's social score
Social score: 8.31/100
Royal Caribbean Cruises's governance score
Governance score: 2.63/100
Royal Caribbean Cruises's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Royal Caribbean Cruises scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Royal Caribbean Cruises hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||19.95|
|Total ESG percentile||28.52|
|Level of controversy||3|
Royal Caribbean Cruises share dividends
Dividend payout ratio: 357.65% of net profits
Recently Royal Caribbean Cruises has paid out, on average, around 357.65% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.54% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Royal Caribbean Cruises shareholders could enjoy a 4.54% return on their shares, in the form of dividend payments. In Royal Caribbean Cruises's case, that would currently equate to about $3.12 per share.
Royal Caribbean Cruises's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Royal Caribbean Cruises's most recent dividend payout was on 5 April 2020. The latest dividend was paid out to all shareholders who bought their shares by 4 March 2020 (the "ex-dividend date").
Have Royal Caribbean Cruises's shares ever split?
Royal Caribbean Cruises's shares were split on a 2:1 basis on 2 August 1998. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Royal Caribbean Cruises shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Royal Caribbean Cruises shares which in turn could have impacted Royal Caribbean Cruises's share price.
Royal Caribbean Cruises share price volatility
Over the last 12 months, Royal Caribbean Cruises's shares have ranged in value from as little as US$19.25 up to US$135.315. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Royal Caribbean Cruises's is 2.6828. This would suggest that Royal Caribbean Cruises's shares are significantly more volatile than the average for this exchange and represent a higher risk.
Royal Caribbean Cruises overview
Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, and Silversea Cruises brands. The Royal Caribbean International brand provides itineraries to destinations worldwide, including Alaska, Asia, Australia, Bahamas, Bermuda, Canada, the Caribbean, Europe, the Panama Canal, and New Zealand with cruise lengths that range from 2 to 19 nights. The Celebrity Cruises brand offers itineraries to destinations, such as Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, India, New Zealand, the Panama Canal, and South America with cruise lengths ranging from 2 to 19 nights. The Azamara Club Cruises brand offers cruise itineraries to destinations, including Asia, Australia/New Zealand, Northern and Western Europe, the Mediterranean, Cuba, and South America with cruise lengths ranging from 3 to 26 nights. The Silversea Cruises brand provides itineraries to destinations, including the Galapagos Islands, Antarctica, and the Arctic with cruise lengths ranging from 6 to 25 nights. As of December 31, 2019, the company operated 61 ships and had 17 ships on order. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.
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