Professional
Added to YB: 2024-02-14
Pitch date: 2024-02-12
RCL [bullish]
Royal Caribbean Cruises Ltd.
+145.55%
current return
Author Info
Company Info
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.
Market Cap
$72.6B
Pitch Price
$113.57
Price Target
139.88 (-50%)
Dividend
1.50%
EV/EBITDA
13.52
P/E
17.93
EV/Sales
5.35
Sector
Hotels, Restaurants and Leisure
Category
growth
Royal Caribbean Cruises: Why the Cruise Sector Deserves a Narrative Change
$RCL follows growth algo like CMG & RMS: moderate capacity growth, robust pricing, minimal cost/pax increases drive margins & financials. Post-Covid recovery: 8.5% '24 capacity growth, 5.25-7.25% pricing despite extraordinary costs. Long-term compounding strong: 5.1% price CAGR '14-'19, 4.2% till '23. Low penetration = significant expansion in supply-constrained mkt. Deleveraging underway. 20%+ 5Y EPS CAGR expected. <15x PE vs similar growth sectors = 20%+ upside on EPS & narrative shift.
Read full article (8 min)