Royal Caribbean Cruises Ltd. (NYSE:RCL) shares traded higher over the last trading session, gaining 3.69% on 02/12/20. The shares fell to a low of $114.46 before closing at $117.23. Intraday shares traded counted 3.96 million, which was -108.65% lower than its 30-day average trading volume of 1.90M. RCL’s previous close was $113.06 while the outstanding shares total 219.28M. The firm has a beta of 1.47, a 12-month trailing P/E ratio of 13.01, and a growth ratio of 1.20. The stock’s Relative Strength Index (RSI) is 43.33, with weekly volatility at 2.92% and ATR at 4.00. The RCL stock’s 52-week price range has touched low of $100.00 and a $135.32 high.
Investors have identified the tech company Royal Caribbean Cruises Ltd. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $25.71 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Royal Caribbean Cruises Ltd. (RCL) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For RCL, the company has in raw cash 276.73 million on their books with 1.04 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 1.2 billion million total, with 7.11 billion as their total liabilities.
RCL were able to record 765.17 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -11.12 million. In cash movements, the company had a total of 3.11 billion as operating cash flow.
Potential earnings growth for Royal Caribbean Cruises Ltd. (RCL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Royal Caribbean Cruises Ltd. recorded a total of 3.19 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 12.26% coming in sequential stages and their sales for the third quarter increasing by 11.93%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.62 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.56 billion. This allows shareholders to hold on to 219.28M with the revenue now reading 4.21 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.41 cents a share).
Having a look at the company’s valuation, the company is expected to record 9.54 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on RCL sounds very interesting.
Is the stock of RCL attractive?
In related news, Pres&CEO, Azamara Club Cruises, Pimentel Lawrence R sold 16,000 shares of the company’s stock in a transaction that recorded on Feb 06. The sale was performed at an average price of 120.00, for a total value of 1,920,000. Also, Chairman & CEO, Fain Richard D sold 20,000 shares of the company’s stock in a deal that was recorded on Feb 05. The shares were price at an average price of 119.69 per share, with a total market value of 2,393,756. Following this completion of acquisition, the Director, Ofer Eyal now holds 2,586 shares of the company’s stock, valued at 65,064. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
14 out of 20 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Royal Caribbean Cruises Ltd. 0 analysts has assigned a Sell rating on the RCL stock. The 12-month mean consensus price target for the company’s shares has been set at $143.35.