NYSE: RCL · Hotels, Resorts & Cruise Lines
Royal Caribbean Group
Royal Caribbean Group, based in Miami, owns three global cruise brands—Royal Caribbean (the world’s largest cruise vacation brand), Celebrity Cruises and Silversea—and a 50% stake in TUI Cruises (TUI Cruises and Hapag-Lloyd Cruises). With its partner brands it operated 69 ships with about 179,720 berths at end-2025. After pandemic losses in 2020–2022, revenue reached $17,935 million in 2025 and net income $4,268 million (EPS $15.61); passenger tickets are about 70% of revenue and North America itineraries $11,542 million. It reinstated dividends in 2024. On September 23, 2026 it agreed to buy 50% of Sandals and Beaches Resorts for about $3.0 billion in cash.
Last updated
Analysis last edited: November 1, 2026 · Financial data fetched: November 1, 2026 09:55 (SEC EDGAR) · Source 10-K filed: February 11, 2026
Built on10-K FY2025 · filed 2026-02-1110-Q (quarter ended 2026-09-30) · filed 2026-10-27Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 52.0%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 27.4%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +6.0 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 3.1x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.51x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 2 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 19.2x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.26
Higher than 99% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 77% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 59% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 73% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 49% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$322.55close on 2026-11-04
Market cap$87.22B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 19.2x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 8.7x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 16.3x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 1.4%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.1%
At FY2025 year-end: 17.9x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 7.5x
Book value at FY2025 year-end
At FY2025 year-end: 14.5x
EBITDA for FY2025
At FY2025 year-end: 1.6%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$5.14B → $5.59B (vs. a year earlier)↑ +8.8%$5.14B → $5.59B (vs. a year earlier)
- Operating margin33.1% → 33.5% (vs. a year earlier)↑ +0.3 pts33.1% → 33.5% (vs. a year earlier)
- Net income$1.58B → $1.73B (vs. a year earlier)↑ +9.7%$1.58B → $1.73B (vs. a year earlier)
- Diluted EPS$5.74 → $6.45 (vs. a year earlier)↑ +12.4%$5.74 → $6.45 (vs. a year earlier)
- Cash$875M → $851M (vs. previous quarter-end)↓ −2.7%$875M → $851M (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 27, 2026.
Management outlook • Issued
Now expects full-year Adjusted EPS of $17.85–$17.95. Source sentence
The company now expects full year Adjusted EPS to be in the range of $17.85 to $17.95.
Key changes
Q3 revenue $5.6B, up 9%. Source sentence
Total revenue was $5.6 billion, a 9% increase year over year.
Net Yields up 0.9%. Source sentence
Net Yields increased 0.9% as-reported and 0.6% in Constant Currency, driven by better-than-expected close-in demand in Europe and the Caribbean.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- ROYAL CARIBBEAN CRUISES LTD
- Headquarters
- MIAMI, FL
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: RCL
- Industry
- Hotels, Resorts & Cruise Lines
- CIK
- 884887
Workforce (as of FY2025 year-end)
Employees
108,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 28–32 days after quarter end (Jan 29, 2026; Jan 28, 2025; Feb 1, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 25–32 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 27, 2026 (+27 days) | Oct 27, 2026 10-Q (+27 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 28, 2026 (+28 days) | Jul 28, 2026 10-Q (+28 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | Apr 30, 2026 10-Q (+30 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 29, 2026 (+29 days) | Feb 11, 2026 10-K (+42 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 28, 2025 (+28 days) | Oct 28, 2025 10-Q (+28 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 29, 2025 (+29 days) | Jul 29, 2025 10-Q (+29 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 29, 2025 (+29 days) | Apr 29, 2025 10-Q (+29 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 28, 2025 (+28 days) | Feb 14, 2025 10-K (+45 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 29, 2024 (+29 days) | Oct 29, 2024 10-Q (+29 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 25, 2024 (+25 days) | Jul 25, 2024 10-Q (+25 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 25, 2024 (+25 days) | Apr 25, 2024 10-Q (+25 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 1, 2024 (+32 days) | Feb 21, 2024 10-K (+52 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Global Brands
Royal Caribbean
The world’s largest cruise vacation brand.
Global Brands
Celebrity Cruises
Premium cruise brand.
Global Brands
Silversea
Ultra-luxury and expedition cruises.
Destinations
Perfect Day and Royal Beach Club
Private land-based destinations.
From the Form 10-K, FY2025.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Cruise brand
Cruise vacations
U.S. share
—
Not disclosedWorldwide share
World’s largest brand
Company-disclosed“Royal Caribbean is the world’s largest cruise vacation brand” (no percentage stated).
07
Recent strategic focusSite analysis
Recent developments.
Q3 2026 results
Q3 revenue $5,591M (vs $5,139M); net income attributable to RCL $1,728M (vs $1,575M); diluted EPS $6.45 (vs $5.74).
Source: Form 10-Q (quarter ended 2026-09-30)
Sandals investment
Agreed to buy 50% of Sandals and Beaches Resorts for about $3.0B in cash.
Source: Form 8-K (2026-09-23) — Item 8.01
Funding
Issued $2.5B of senior notes in February 2026 and $1.25B in August 2026.
Source: Form 8-K (2026-08-20) — Item 1.01
Capex ÷ D&A (FY2025)
3.04x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$5,229M ÷ $1,718M = 3.04x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Where the money goes, over time
Unit: $M. Capex went from $1.97B in FY2020 to $5.23B in FY2025
- Capex
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$17.94B
As reported in the 10-K
Revenue CAGR (5 years)
+52.0%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($17,935M ÷ $2,209M) ^ (1÷5) − 1 = 52.0%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
27.4%▲favorable
+235.7pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$4,910M ÷ $17,935M × 100 = 27.4%
ROE (FY2025)
48.5%▲favorable
6-year average: -9.4%
As reported in the 10-K
P/B (FY2025 end)
7.51x
formulafiscal year-end closing price ÷ book value per share
e.g.$278.92 ÷ $37.12 = 7.51x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
14.5x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($75,426M + $21,345M − $825M) ÷ ($4,910M + $1,718M) = 14.5x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +52.0% a year over 5 years (strong growth)
From $2.21B in FY2020 to $17.94B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: -208.3% → 27.4%
How much operating profit is left per $100 of revenue. It moved +235.7 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 24.1% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▼
Free cash flow was positive in 3 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▼
ROE averaged -9.4% over 6 years (latest: 48.5%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- TUI Cruises
- Sandals and Beaches Resorts
07 · what it does
Key activities
- Royal Caribbean, Celebrity Cruises and Silversea brands
- 50% TUI Cruises joint venture
- Private destinations and pre-/post-cruise packages
06 · what it draws on
Key resources
- About 108,000 employees, including about 11,400 full-time shoreside
- 69 ships (with partner brands), about 179,720 berths
- New ship orders and private destinations
02 · why customers buy
Value propositions
- Cruise vacations on state-of-the-art ships and private destinations.
04 · how it keeps them
Customer relationships
- Loyalty programs with exclusive benefits for repeat guests.
03 · how it reaches them
Channels
- Travel agents, its websites and apps.
01 · who it serves
Customer segments
- Vacationers worldwide, mainly from North America
- Travel agencies and direct bookings
09 · where money goes
Cost structure
FY2025, share of revenue ($17.94B)
- Cost of revenue50.6%
- Selling, general & administrative12.4%
- Other operating costs9.6%
Operating profit left: 27.4% of revenue. Depreciation & amortization (inside the costs above): $1.72B. Capital spending: $5.23B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Revenue $17,935M (2025)
- Passenger tickets about 70%; onboard and other about 30%
- North America itineraries $11,542M; Europe $2,951M; Asia/Pacific $1,716M
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Sells cruise vacations (tickets, about 70% of revenue) and onboard spending such as beverages and shore excursions, plus private destinations like Perfect Day and Royal Beach Club.
01 what it draws on
Inputs & resources
- About 108,000 employees, including about 11,400 full-time shoreside
- 69 ships (with partner brands), about 179,720 berths
- New ship orders and private destinations
02 what it does
Activities
- Royal Caribbean, Celebrity Cruises and Silversea brands
- 50% TUI Cruises joint venture
- Private destinations and pre-/post-cruise packages
03 who it serves
Customers
- Vacationers worldwide, mainly from North America
- Travel agencies and direct bookings
04 how money comes in
How it earns
- Revenue $17,935M (2025)
- Passenger tickets about 70%; onboard and other about 30%
- North America itineraries $11,542M; Europe $2,951M; Asia/Pacific $1,716M
How the business makes money
- Customer deposits of $5,739M at end-2025.
- Holds a small share of a $2T+ vacation market (company view).
- Sandals and Beaches 50% stake agreed September 2026.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Royal Caribbean faces tariffs, sanctions and Clean Water Act rules.
Trade & export rules
Tariffs and trade rules
Tariffs and trade sanctions can affect its supply chain.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2025)
Environmental rules
Clean Water Act and ship rules
The Clean Water Act governs discharges in U.S. waters.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
North America
11,542 (64%)Europe
2,951 (16%)Asia/Pacific
1,716 (10%)Other Regions
862 (5%)Other revenues
864 (5%)
Source: Form 10-K (FY2025) One reportable segment; revenue by itinerary, total $17,935M.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Joint venture
TUI Cruises
50% joint venture operating TUI Cruises and Hapag-Lloyd Cruises.
Source: Form 10-K (FY2025)
Capital tie / equity stake
Sandals and Beaches Resorts
Definitive agreements (September 23, 2026) to acquire 50% for about $3.0B in cash, funded by committed Morgan Stanley debt.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Vacationers, mainly North American.
Named by the company
No single customer is named as material.
Suppliers
Shipyards, fuel and food suppliers.
Named by the company
No single supplier is named as material.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K names its principal cruise competitors and notes competition from land-based vacations.
Competitors named in the 10-K
Cruise vacations
- Carnival Corporationsite ↗
- Walt Disneysite ↗
- MSC Cruisessite ↗
- Norwegian Cruise Line Holdingssite ↗
- Viking Holdingssite ↗
- Virgin Voyagessite ↗
Peer group the company chose
Peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Compensation peer group from the 2026 proxy statement.
- American Airlinessite ↗
- Booking Holdingssite ↗
- Caesars Entertainmentsite ↗
- Chipotle Mexican Grillsite ↗
- Domino's Pizzasite ↗
- Expedia Groupsite ↗
- Hiltonsite ↗
- Hyatt Hotelssite ↗
- MGM Resortssite ↗
- Norwegian Cruise Line Holdingssite ↗
- Starbuckssite ↗
- United Airlinessite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 2,209 | 1,532 | 8,840 | 13,900 | 16,484 | 17,935 |
| Operating income | -4,602 | -3,870 | -766 | 2,878 | 4,106 | 4,910 |
| Pretax income | — | — | — | 1,711 | 2,941 | 4,373 |
| Net income (attributable) | -5,797 | -5,260 | -2,156 | 1,697 | 2,877 | 4,268 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | -30.6% | 477.0% | 57.2% | 18.6% | 8.8% |
| Operating margincalcoperating income ÷ revenue × 100 | -208.3% | -252.6% | -8.7% | 20.7% | 24.9% | 27.4% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | -262.5% | -343.3% | -24.4% | 12.2% | 17.5% | 23.8% |
| Balance sheet ($M) | ||||||
| Total assets | 32,465 | 32,258 | 33,776 | 35,131 | 37,070 | 41,619 |
| Total equity | 8,761 | 5,087 | 2,869 | 4,899 | 7,735 | 10,245 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 19,329 | 21,090 | 23,391 | 21,452 | 20,076 | 21,345 |
| Equity ratio | 27.0% | 15.8% | 8.5% | 13.4% | 20.4% | 24.1% |
| ROE | -66.2% | -76.0% | -54.2% | 44.7% | 46.8% | 48.5% |
| Cash flow ($M) | ||||||
| Operating CF | -3,732 | -1,878 | 481 | 4,477 | 5,265 | 6,465 |
| Investing CF | -2,179 | -2,145 | -2,987 | -3,923 | -3,446 | -5,012 |
| Financing CF | 9,350 | 3,041 | 1,741 | -1,993 | -1,922 | -1,018 |
| Free cash flowcalccash flow from operations − capital expenditures | -5,697 | -4,108 | -2,229 | 580 | 1,997 | 1,236 |
| Cash and equivalents | 3,684 | 2,702 | 1,935 | 497 | 388 | 825 |
| Per share & other | ||||||
| EPS ($) | -27.05 | -20.89 | -8.45 | 6.31 | 10.94 | 15.61 |
| BVPS ($) | 36.90 | 19.96 | 11.24 | 18.42 | 28.13 | 37.12 |
| Dividend per share ($) | 0.78 | — | 0.00 | 0.00 | 0.95 | 3.50 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | — | — | — | 0.0% | 8.7% | 22.4% |
| P/E (x) | — | — | — | 20.5 | 21.1 | 17.9 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | — | — | 53.2 | 12.5 | 14.3 | 14.5 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 2.02 | 3.85 | 4.40 | 7.03 | 8.20 | 7.51 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $5.59B+8.8% | $1.87B+9.9% | $1.73B+9.7% | $6.45 |
| 2026-06-30 | $4.83B+6.5% | $1.31B-1.7% | $1.13B-6.8% | $4.20 |
| 2026-03-31 | $4.45B+11.3% | $1.16B+23.0% | $941M+28.9% | $3.48 |
| 2025-12-31 † | $4.26B+13.3% | $934M+49.9% | $753M+36.4% | — |
| 2025-09-30 | $5.14B | $1.7B | $1.58B | $5.74 |
| 2025-06-30 | $4.54B | $1.33B | $1.21B | $4.41 |
| 2025-03-31 | $4B | $945M | $730M | $2.70 |
| 2024-12-31 † | $3.76B | $623M | $552M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
16.3%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$4,910M × (1 − 1.5%) ÷ $29,701M × 100 = 16.3%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
10.27%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $75.43B ÷ ($75.43B + $21.35B) = 77.9%
e.g.Debt weight: $21.35B ÷ ($75.43B + $21.35B) = 22.1%
e.g.WACC: 11.9% × 77.9% + 4.6% × (1 − 1.5%) × 22.1% = 10.27%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 8.6%–12.3% and ROIC − WACC runs +4.0 to +7.7 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 10.27% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 1.26 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 11.88%
- Cost of debt
- 4.65%
- Tax rate
- 1.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 78% : 22%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 10.27%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 1.26 (price-derived adjusted beta. Raw β 1.39, R² 0.22, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.394 + 0.33 = 1.264
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 1.26 × 5.5% = 11.9%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
9.1%
Perpetual FCF growth: g = r − FCF ÷ EV = 10.3% − 1.1%
Past FCF growth (FY2020–FY2025)
—
Not computable (FCF not positive in both years)
Past revenue growth (FY2020–FY2025)
+52.0%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $1.24B (operating CF − capex); enterprise value $107.74B = market cap $87.22B (latest close, 2026-11-04) + debt $21.35B − cash and short-term investments $825M; r = WACC of 10.3% using this page’s default assumptions (β 1.26, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$103B
FCF $1.24B ÷ (10.3% − 9.1%)
Theoretical ÷ actual enterprise value
0.96x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 8.3% | 9.3% | 10.3% | 11.3% | 12.3% |
|---|---|---|---|---|---|
| 0% | 0.14x | 0.12x | 0.11x | 0.10x | 0.09x |
| 2% | 0.18x | 0.16x | 0.14x | 0.12x | 0.11x |
| 4% | 0.27x | 0.22x | 0.18x | 0.16x | 0.14x |
| 6% | 0.50x | 0.35x | 0.27x | 0.22x | 0.18x |
| 8% | 3.82x | 0.88x | 0.50x | 0.35x | 0.27x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.99x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -5.6%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 112%
Most profit comes from core operations.
- ✓
Days sales outstanding: 47 → 7 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$6,465M ÷ $4,268M = 1.51x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$4,910M ÷ $4,373M × 100 = 112%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($371M + $317M) ÷ 2 ÷ $17,935M × 365 = 7 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($265M + $264M) ÷ 2 ÷ $9,083M × 365 = 11 days
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 88.8%
- Directors & officers (shares)
- 6.5%
- Everyone else (est.)
- 4.7%
- Directors & officers (voting power)
- 6.5%
- Institutional-ownership rank
- 212 of 416
- Beta (adjusted)
- 1.26
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 51% of covered companies have more
above 1 = swings more than the market
- 237.4M shares reported by 1,228 13F filers ÷ 267.5M shares outstanding on 2026-07-24. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-17 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-24)
19
Strengths & weaknessesSite analysis
Strengths
1. Scale leader
Royal Caribbean is the world’s largest cruise vacation brand.
Evidence: Form 10-K (FY2025)
2. Strong recovery
Net income rose from −$5,797M (2020) to $4,268M (2025).
Evidence: Form 10-K (FY2025)
3. Cash generation
Operating cash flow of $6,465M in 2025.
Evidence: Form 10-K (FY2025)
Weaknesses
1. Heavy debt
Interest-bearing debt of $21,345M at end-2025.
Evidence: Form 10-K (FY2025)
2. Large capex
Capex rose to $5,229M in 2025 for new ships.
Evidence: Form 10-K (FY2025)
3. Pandemic vulnerability
Revenue fell to $1,532M in 2021 with large losses.
Evidence: Form 10-K (FY2025)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
17.9x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.25%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
22%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
1.6%
(Operating CF − capex) ÷ market cap
1. Profit recovery and returns
EPS $15.61 in 2025; dividend $3.50 per share in 2025.
- What has to hold
- Demand stays strong.
- The other side
- Leverage and cyclicality.
Evidence: Form 10-K (FY2025)
2. Vacation ecosystem expansion
Private destinations and land resorts (Sandals).
- What has to hold
- Guests spend more across the ecosystem.
- The other side
- Integration and price paid.
Evidence: Form 8-K (2026-09-23) — Item 8.01
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
0.3x
$825M vs. $3.18B
Interest coverage (operating income ÷ interest expense)
4.9x
$4.91B vs. $992M
Free cash flow ÷ dividends paid
1.5x
$1.24B vs. $824M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -30.6% in FY2021 ($2.21B → $1.53B) | Yes, by FY2022 |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Liquidity through the pandemic
Debt rose from $19,329M (2020) to $23,391M (2022) during the loss years, then fell to $21,345M by 2025.
Source: Form 10-K (FY2025)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Royal Caribbean believes ordinary claims, net of insurance, are not material; the main disclosed matter is the Havana Docks Helms-Burton case.
1 open matter (1 flagged as major)
Havana Docks (Helms-Burton Act)
On appealLawsuitMajorHavana Docks Corporation; Royal Caribbean
Havana Docks alleged RCL trafficked in the expropriated Havana Cruise Port Terminal; the district court awarded about $112M. The 11th Circuit reversed, but on May 21, 2026 the Supreme Court vacated that ruling and remanded for remaining defenses.
- Amounts
- About $112M (district court award)
- Next step
- 11th Circuit remand
Source: Form 10-Q (quarter ended 2026-09-30) — Note on Commitments and Contingencies
Based on Form 10-Q (quarter ended 2026-09-30) — Note on Commitments and Contingencies, reviewed 2026-11-01. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
Vacation demand
- Company disclosure (summarized from the 10-K)
- Industry capacity growth without demand growth could depress prices.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 2Funding & liquidity
Leverage
- Company disclosure (summarized from the 10-K)
- Debt-funded ships and the Sandals investment.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Raw materials & energy
Fuel costs
- Company disclosure (summarized from the 10-K)
- Fuel was 6.4% of 2025 revenue.
- Company’s stated mitigation
- On a regular basis, we enter into foreign currency forward contracts, interest rate swaps, fuel swaps and options with third-party institutions in over-the-counter markets.
- This site’s assessment
- Impact Med / Likelihood High
- 4Competition & technology shift
Cruise and land competition
- Company disclosure (summarized from the 10-K)
- Competes with Carnival, NCLH, MSC, Disney, Viking, Virgin and land-based vacations.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 5Law & regulation
Havana Docks
- Company disclosure (summarized from the 10-K)
- Helms-Burton case remanded by the Supreme Court in May 2026.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (6)
These projects increase the complexity of our business and require significant levels of investment to develop. Read more
In addition, we face greater exposure to certain key risks depending on the scope, location, and the ownership and management structure of these projects. Development activities may be delayed or adversely affected by construction challenges, supply chain disruptions, weather events, labor availability, environmental or site-specific conditions, and delays in obtaining or maintaining permits, any of which could adversely affect our ability to complete our projects as planned. We may also face opposition or challenges from non-governmental organizations (NGOs), community groups, or other stakeholders, including claims related to environmental impact, cultural heritage, or land use. Such challenges may result in litigation, administrative proceedings, reputational harm, or…
Once operational, these projects are also subject to ongoing regulatory, labor and political risks in foreign jurisdictions, including changes in government policies, tax or regulatory regimes, any of which could disrupt operations or increase costs. These projects can also strain our management, personnel, operations and systems.
There can be no assurance that we will declare or pay dividends in the future or that we will repurchase shares pursuant to our share repurchase program consistent with historical amounts or at all.
Although we currently pay a quarterly cash dividend and we have adopted a share repurchase program, we are not obligated to pay cash dividends or to repurchase a specified number or dollar value of shares under share repurchase program or at all. The declaration and payment of any future dividends is at the discretion of our Board of Directors. The level of dividends and amount, timing, and purchases under our share repurchase program, if any, are influenced by many factors and may fluctuate based on our operating results, cash flows, and priorities for the use of cash, and the market price of common stock. In addition,
we cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term shareholder value.
As global technology‑related regulatory frameworks continue to evolve, our use of these technologies may subject us to additional compliance obligations, including restrictions on the usage of certain technologies or additional requirements on data usage and transparency. Compliance with these regulations could increase our compliance costs, expose us to regulatory enforcement or legal liability, constrain our ability to implement or expand technology‑based solutions, or otherwise affect the timing and effectiveness of our initiatives. In addition, emerging technologies may not always perform as intended, may generate inaccurate outputs, or may depend on third‑party systems that we do not control. Any such operational deficiencies could impair the performance of systems that support key business functions, disrupt guest‑facing experiences, or subject us to legal liability, which could…
No longer in the text (2)
Our dividend policy may change without notice and any payment of dividends in the future is subject to the discretion of our Board of Directors.
Although we currently pay a quarterly cash dividend to holders of our common stock, we may change our dividend policy at any time. Read more
The decision to declare and pay dividends on our common stock will be made at the discretion of our Board of Directors and will depend on a number of factors, including our profitability at the time, cash available for those dividends, and other factors as our board of directors may consider relevant.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 11, 2026 ↗ with the 10-K filed Feb 14, 2025 ↗.
25
What to watch going forwardSite analysis
- Closing of the Sandals investment.
- Yields and booking trends.
- Havana Docks remand in the 11th Circuit.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 1, 2026 · Financial data fetched: November 1, 2026 09:55 (SEC EDGAR) · Source 10-K filed: February 11, 2026
Built on10-K FY2025 · filed 2026-02-11Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Royal Caribbean Group’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.