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Royal Caribbean Group - Stock Quote RCL

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Morningstar's Royal Caribbean Group Stock Analysis

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Is it the right time to buy or sell?

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5-Star Price

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Economic Moat

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Capital Allocation

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Cruise Line Stocks Pricing In Higher Probability of Economic Duress; Shares Attractive

Jaime M. Katz, CFA Senior Equity Analyst

Analyst Note

| Jaime M. Katz, CFA |

Amid continued concerns about inflation and the global geopolitical environment, the stock prices of the no-moat cruise majors we cover have struggled to stabilize in 2022, with the shares of Carnival falling 29%, Royal Caribbean down 20%, and Norwegian Cruise Line sliding 22% year to date through May 13. We contend that the market is underestimating pent-up consumer demand for travel, with COVID-19-related restrictions receding around the globe. More important, with most (or all) of these operators’ ships deployed, we don’t see liquidity concerns as paramount any longer, as cash burn slows and profitability approaches.

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Royal Caribbean Group's Company Profile

Business Description

Royal Caribbean is the world's second-largest cruise company, operating 63 ships across five global and partner brands in the cruise vacation industry, with 11 more ships on order. Brands the company operates include Royal Caribbean International, Celebrity Cruises, and Silversea. The company also has a 50% investment in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises, allowing it to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. The company completed the divestiture of its Azamara brand in the first quarter of 2021.

Contact
1050 Caribbean Way
Miami, FL, 33132
T +1 305 539-6000
Sector Consumer Cyclical
Industry Travel Services
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 85,000

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