Royal Caribbean Cruises Ltd.RCL
NYSE•Consumer Cyclical•Travel Services
Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of December 31, 2025, it operated 69 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.
Royal Caribbean Cruises Ltd. (RCL) reported trailing twelve months revenue of $18.39B as of March 2026, a 9.7% increase year-over-year. Quarterly revenue reached $4.45B, reflecting continued top-line momentum.
Royal Caribbean Cruises Ltd. generated $4.48B in TTM net income, with quarterly EBITDA of $1.16B. The operating margin expanded from 23.6% to 26.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (26.1%) and net margin (21.1%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 18.3% a year ago, signaling stronger bottom-line efficiency.
RCL trades at a P/E of 15.8x (in line with broad market averages) and a P/S of 3.8x. The price-to-book ratio of 7.2x indicates a significant premium over book value.
The company generated $1.33B in free cash flow over the trailing twelve months, a 11.3% increase year-over-year, indicating cash generation ability. The balance sheet shows $41.99B in total assets with $19.67B in long-term debt against $9.81B in stockholders equity for a debt-to-equity ratio of 2.0, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~26.4%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 40.6% suggests a durable competitive advantage and efficient capital allocation.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~19.9% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~27.6% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio of 2.0 is elevated. Monitor for further debt accumulation.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares outstanding increased 5.1% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation