Royal Caribbean Cruises

RCL

Travel Services · Consumer Cyclical

Price

$286.96

-6.99 (-2.38%)

Market Cap

$76.96B

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count rising — dilution

+8.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 251.8M (2021) → 273.0M (2025)

Royal Caribbean Cruises operates large cruise ships that take vacationing passengers to destinations around the world, including the Caribbean, Europe, Alaska, and Asia. The company owns three main cruise brands — Royal Caribbean International, Celebrity Cruises, and Silversea Cruises — which serve different types of travelers, from families to luxury seekers. It is one of the two largest cruise companies in the world, alongside Carnival Corporation.

The company makes money primarily by selling cruise tickets and then earning additional revenue onboard through dining, drinks, casinos, and shore excursions. Royal Caribbean operates globally but draws most of its customers from North America, and its fleet of over 60 ships represents a massive physical asset that is difficult for new competitors to replicate. The biggest risk the business faces is its sensitivity to economic downturns, since cruises are a discretionary purchase that consumers cut quickly when money gets tight, and the company also carries significant debt from its fleet expansion program.

Winston Score History

Politician Trades

14 trades / 12mo

7 Congressional buys and 7 sells on RCL in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+28.8% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

5.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$512M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Royal Caribbean Cruises is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

49.5%

Healthy — 49.5% gross margin

Operating Margin

26.1%

Excellent — 26.1% operating margin

ROCE

3.7%

Weak — 3.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+9.7%

Steady sales growth (9.7% YoY)

EPS YoY

+34.6%

Earnings growing fast (34.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

149%

Turns 149% of profit into real cash

FCF Margin

7.5%

Modest free cash flow (7.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

2.22

Heavy debt load (2.22)

Interest Cover

5.02x

Adequate interest coverage (5.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

17.4x

Fair value — P/E 17.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+4.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (17.4 → 13.2)

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Dividends

Dividend Yield

1.66%

Small dividend — 1.66% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+104.1%

Dividend growing fast (104.1% YoY)

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