Based on the Royal Caribbean Stock Forecast from 9 analysts, the average analyst RCL stock price target is USD 59.13 over the next 12 months. Royal Caribbean Cruises Ltd’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of RCL stock forecast is Neutral, which is based on 5 positive signals and 5 negative signals. At the last closing, Royal Caribbean Cruises Ltd’s stock price was USD 37.90. RCL stock price has changed by -6.52% over the past week, -3.10% over the past month and -58.95% over the last year.
About Royal Caribbean Cruises Ltd. (RCL:NYE):
Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands, which comprise a range of itineraries that call on approximately 1,000 destinations. As of February 25, 2022, it operated 61 ships. The company was founded in 1968 and is headquartered in Miami, Florida.
What we like:
High market capitalization:
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior risk adjusted returns:
RCL stock price has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.
High dividend returns:
RCL stock price has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis, for investors seeking high income yields.
Underpriced compared to book value:
RCL stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Superior capital utilization:
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
What we don’t like:
RCL stock forecast shows that the total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Overpriced compared to earnings:
RCL stock price is trading high compared to its peers on a price to earning basis and is above the sector median.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.
RCL stock forecast shows that the company had negative total cash flow in the most recent four quarters.
Negative free cash flow:
RCL stock forecast shows that the company had negative total free cash flow in the most recent four quarters.