Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Royal Caribbean Cruises Ltd

RCL · NYSE · Industrial

Fundamental quality

ATTRACTIVE

83

out of 100

Royal Caribbean Cruises Ltd fits the profile of a quality compounder: it pairs high return on capital (ROE 45.7%) with wide margins (net margin 24.4%) and a business that keeps growing (49.8% a year). On fundamental quality it scores 83 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its financial strength (net debt 2.99× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Royal Caribbean is the megaship cruise line: floating cities with water parks and ice rinks that redefine what a cruise is. It emerged from pandemic near-death with record demand and an ever-younger clientele.

What will shape its future

  • Demand for experiences: a cruise now costs less than the equivalent resort, and that fills ships.
  • The mountain of pandemic debt, filed down with every good quarter.
  • Fuel and geopolitics, the classics no cruise line controls.

Breakdown by area

I.Growth
95

EPS growth: 52.9% · Revenue growth: 49.8%

II.Profitability
95

Net margin: 24.4% · ROE: 45.7% · ROIC: 16.5%

III.Financial health
59

Net debt/EBITDA: 2.99x · FCF: 7.5%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 95%
ROEbeats 91%
Growthbeats 94%
Cash generationbeats 39%
Less debtbeats 28%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Royal Caribbean Cruises Ltd strengths

  • Revenue growing strongly (49.8% annualized).
  • Growing earnings per share (52.9% annualized).
  • Reasonable return on capital: its ROE (45.7%) is inflated by buybacks, but ROIC —which strips that out— is 16.5%.
  • High net margin (24.4%), high even for its sector: the business is clearly profitable.

Royal Caribbean Cruises Ltd risks and weaknesses

  • Its net debt has grown over the period.
  • Erratic free cash flow, with several years in the red.

Royal Caribbean Cruises Ltd historical evolution

YearRevenueNet incomeFree cash flowNet debt
20202,209-5,797-5,69715,645
20211,532-5,260-4,10818,389
20228,840-2,156-2,22921,456
202313,9001,69758020,955
202416,4842,8771,99719,688
202517,9354,2681,23620,520

Between 2020 and 2025, revenue went from $2,209M to $17,935M (+712%) and net income went from -$5,797M to $4,268M (+174%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+11.3%
  • Net income+28.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$3.5

per share, yearly

19.3% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Royal Caribbean Cruises Ltd cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Royal Caribbean Cruises Ltd a good company to invest in?

In terms of business quality, Royal Caribbean Cruises Ltd scores 83 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Royal Caribbean Cruises Ltd a profitable company?

Very. Royal Caribbean Cruises Ltd shows a net margin of 24.4% and an ROE of 45.7%, typical of a highly profitable business.

Does Royal Caribbean Cruises Ltd have a lot of debt?

A moderate level: its net debt is 2.99 times its EBITDA.

Is Royal Caribbean Cruises Ltd growing?

Its revenue has grown 49.8% annualized in recent years and its earnings per share 52.9%.

Does Royal Caribbean Cruises Ltd generate cash?

Yes. It converts about 7.5% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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