Recent News
On December 10, 2025 the company declared a quarterly dividend of $1.00 per share and announced a new $2.0 billion share-repurchase authorization. On October 1, 2025 Royal Caribbean completed a $1.5 billion offering of 5.375% senior unsecured notes due 2036 to finance the delivery of Celebrity Xcel and to refinance existing indebtedness. On November 18, 2025 Wells Fargo initiated coverage with an Overweight recommendation and published a one‑year price forecast increase for the company.
Technical Analysis
Directional indicators show a strong underlying trend: ADX at 27.2 signals a strong trend environment while DI+ peaked and reversed, which constitutes a bearish shift in directional momentum; DI‑ decreased, which supports a short-term bullish offset but follows the DI+ peak-and-reverse interpretation that pressure on upside momentum exists. Together these readings point to a strong trend that recently lost directional upside conviction and may favor consolidation.
MACD sits at 4.89 and trends higher with the MACD above its signal line at 0.83; that cross above the signal line qualifies as a bullish momentum signal and suggests recent acceleration in upward momentum despite the DI+ peak.
MRO at 15.84 registers positive, indicating price currently sits above the model target and therefore carries potential downward pressure; the rising MRO trend suggests that the magnitude of that divergence expanded recently and may prompt mean reversion risk while momentum indicators remain mixed.
RSI equals 48.45 and trends upward, which places momentum near neutral but building; readings below 50 combined with increasing RSI point to improving participation without overbought conditions, leaving room for further directional resolution.
Price trades at $294.12, above short- and medium-term averages: 12-day EMA $284.60, 20-day average $278.46, 50-day average $276.55, and 200-day average $279.70, confirming price leadership versus moving-average filters. Ichimoku Tenkan and Kijun sit near $274, Senkou A at $286.84 and Senkou B at $308.30; current price sits above Senkou A but below Senkou B, indicating the cloud offers mixed support and resistance. Bollinger upper band near $297.36 keeps price within the upper band without breakout. Average volume readings remain well above the most recent session volume, signaling that recent moves carry limited participation relative to 10/50/200‑day averages and raising the risk that trends lack conviction.
Fundamental Analysis
Profitability remains a primary strength. EBIT equals $1.827B and EBIT margin near 35.55%, representing an 11.81% quarter‑over‑quarter improvement and a 1.11% year‑over‑year increase; that margin sits above the industry peer mean (19.59%) and above the industry peer median (26.67%), indicating superior operating conversion versus peers on margin measures. Gross margin at 51.74% improved 1.33% year‑over‑year and 4.13% quarter‑over‑quarter, supporting operating leverage.
Reported EPS reached $5.75 versus an estimate of $5.68, producing an EPS surprise of roughly 1.23% and confirming near-term earnings beat on the bottom line. Net income totaled $1.575B while operating cash flow reached $1.469B, supporting a positive operating cash profile even as free cash flow equaled negative $989M and free cash flow yield registered approximately -1.14%, reflecting near-term investment and working-capital drag.
Revenue totaled $5.139B with overall revenue growth at 13.24% but revenue growth year‑over‑year recorded -29.86%; QoQ and YoY dynamics indicate seasonal and timing effects alongside recent recovery patterns. Return on equity at 15.61% and return on assets at 4.01% both improved on the quarter, with return on assets up 33.46% year over year, signaling improving asset efficiency.
Leverage and liquidity merit focus. Total debt reached $20.975B with net debt about $19.845B and debt-to-EBITDA near 9.27x. Interest coverage sits at 7.37x, above the industry peer mean (5.28x) and the peer median (6.86x), indicating sufficient earnings buffer for interest expense despite elevated leverage. Current ratio and quick ratio register low short‑term liquidity: current ratio 0.16 and quick ratio 0.14, with a QoQ decline of roughly 29.0% for current ratio, reflecting material negative net working capital of -$9.582B and a working-capital draw that constrains near-term liquidity flexibility.
Capital allocation shows active return of capital while managing maturities. Capital expenditures totaled -$2.458B and capital structure actions included the $1.5B note offering to fund vessel delivery and refinance debt, plus the December buyback authorization and dividend declaration; these moves reflect simultaneous investment in fleet and shareholder distributions. WMDST values the stock as over‑valued, with enterprise value near $106.974B and market capitalization about $86.431B, a capital structure profile that couples strong margins with elevated leverage and negative free-cash-flow in the period.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-28 |
| NEXT REPORT DATE: | 2026-01-27 |
| CASH FLOW | Begin Period Cash Flow | $ 735.0 M |
| Operating Cash Flow | $ 1.5 B | |
| Capital Expenditures | $ -2.46 B | |
| Change In Working Capital | $ -763.00 M | |
| Dividends Paid | $ -204.00 M | |
| Cash Flow Delta | $ -303.00 M | |
| End Period Cash Flow | $ 432.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 5.1 B | |
| Forward Revenue | $ 985.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 2.5 B | |
| Depreciation | $ 436.0 M | |
| Depreciation and Amortization | $ 436.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 3.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.7 B | |
| EBITDA | $ 2.3 B | |
| EBIT | $ 1.8 B | |
| Operating Income | $ 1.7 B | |
| Interest Income | $ 3.0 M | |
| Interest Expense | $ 248.0 M | |
| Net Interest Income | $ -245.00 M | |
| Income Before Tax | $ 1.6 B | |
| Tax Provision | — | |
| Tax Rate | 21.0 % | |
| Net Income | $ 1.6 B | |
| Net Income From Continuing Operations | $ 1.6 B | |
| EARNINGS | ||
| EPS Estimate | $ 5.68 | |
| EPS Actual | $ 5.75 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 1.232 % | |
| Forward EPS | $ 4.44 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 40.1 B | |
| Intangible Assets | $ 808.0 M | |
| Net Tangible Assets | $ 9.3 B | |
| Total Current Assets | $ 1.9 B | |
| Cash and Short-Term Investments | $ 432.0 M | |
| Cash | $ 432.0 M | |
| Net Receivables | $ 356.0 M | |
| Inventory | $ 269.0 M | |
| Long-Term Investments | $ 2.2 B | |
| LIABILITIES | ||
| Accounts Payable | $ 828.0 M | |
| Short-Term Debt | $ 3.1 B | |
| Total Current Liabilities | $ 11.5 B | |
| Net Debt | $ 19.8 B | |
| Total Debt | $ 21.0 B | |
| Total Liabilities | $ 29.8 B | |
| EQUITY | ||
| Total Equity | $ 10.1 B | |
| Retained Earnings | $ 5.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 37.08 | |
| Shares Outstanding | 272.189 M | |
| Revenue Per-Share | $ 18.88 | |
| VALUATION | Market Capitalization | $ 86.4 B |
| Enterprise Value | $ 107.0 B | |
| Enterprise Multiple | 47.271 | |
| Enterprise Multiple QoQ | -15.644 % | |
| Enterprise Multiple YoY | 105.791 % | |
| Enterprise Multiple IPRWA | high: 92.716 RCL: 47.271 median: 24.239 mean: 23.234 low: -68.053 |
|
| EV/R | 20.816 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.974 | |
| Asset To Liability | 1.345 | |
| Debt To Capital | 0.675 | |
| Debt To Assets | 0.523 | |
| Debt To Assets QoQ | 2.121 % | |
| Debt To Assets YoY | 937.599 % | |
| Debt To Assets IPRWA | high: 0.809 mean: 0.575 median: 0.548 RCL: 0.523 low: 0.043 |
|
| Debt To Equity | 2.078 | |
| Debt To Equity QoQ | -3.447 % | |
| Debt To Equity YoY | 683.851 % | |
| Debt To Equity IPRWA | high: 8.432 mean: 2.87 median: 2.336 RCL: 2.078 low: -6.794 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 8.564 | |
| Price To Book QoQ | -7.863 % | |
| Price To Book YoY | 27.207 % | |
| Price To Book IPRWA | RCL: 8.564 high: 4.897 median: 3.25 mean: 2.925 low: -4.651 |
|
| Price To Earnings (P/E) | 55.224 | |
| Price To Earnings QoQ | -17.264 % | |
| Price To Earnings YoY | 62.788 % | |
| Price To Earnings IPRWA | high: 73.556 RCL: 55.224 mean: 20.788 median: 20.655 low: -30.09 |
|
| PE/G Ratio | 1.766 | |
| Price To Sales (P/S) | 16.819 | |
| Price To Sales QoQ | -10.449 % | |
| Price To Sales YoY | 73.254 % | |
| Price To Sales IPRWA | RCL: 16.819 high: 4.755 median: 4.316 mean: 4.271 low: 0.025 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 90.444 | |
| Forward PE/G | 2.892 | |
| Forward P/S | 108.966 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.009 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.131 | |
| Asset Turnover Ratio QoQ | 9.42 % | |
| Asset Turnover Ratio YoY | -0.985 % | |
| Asset Turnover Ratio IPRWA | high: 0.267 median: 0.16 mean: 0.148 RCL: 0.131 low: 0.047 |
|
| Receivables Turnover | 13.06 | |
| Receivables Turnover Ratio QoQ | 23.46 % | |
| Receivables Turnover Ratio YoY | 13.999 % | |
| Receivables Turnover Ratio IPRWA | high: 17.37 median: 13.366 RCL: 13.06 mean: 11.656 low: 0.672 |
|
| Inventory Turnover | 9.612 | |
| Inventory Turnover Ratio QoQ | 5.892 % | |
| Inventory Turnover Ratio YoY | 1.913 % | |
| Inventory Turnover Ratio IPRWA | high: 10.73 RCL: 9.612 median: 9.222 mean: 8.565 low: 0.036 |
|
| Days Sales Outstanding (DSO) | 6.987 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -18.413 | |
| Cash Conversion Cycle Days QoQ | -17.709 % | |
| Cash Conversion Cycle Days YoY | 10.035 % | |
| Cash Conversion Cycle Days IPRWA | high: 141.823 mean: 8.186 median: -7.325 RCL: -18.413 low: -155.188 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -0.536 | |
| CapEx To Revenue | -0.478 | |
| CapEx To Depreciation | -5.638 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 27.3 B | |
| Net Invested Capital | $ 30.4 B | |
| Invested Capital | $ 30.4 B | |
| Net Tangible Assets | $ 9.3 B | |
| Net Working Capital | $ -9.58 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.038 | |
| Current Ratio | 0.165 | |
| Current Ratio QoQ | -28.996 % | |
| Current Ratio YoY | -13.46 % | |
| Current Ratio IPRWA | high: 3.817 mean: 0.672 median: 0.338 low: 0.195 RCL: 0.165 |
|
| Quick Ratio | 0.141 | |
| Quick Ratio QoQ | -32.29 % | |
| Quick Ratio YoY | -13.235 % | |
| Quick Ratio IPRWA | high: 3.123 mean: 0.53 median: 0.297 low: 0.166 RCL: 0.141 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.269 | |
| Cost Of Debt | 0.962 % | |
| Interest Coverage Ratio | 7.367 | |
| Interest Coverage Ratio QoQ | 16.401 % | |
| Interest Coverage Ratio YoY | 158.572 % | |
| Interest Coverage Ratio IPRWA | RCL: 7.367 high: 6.858 median: 6.858 mean: 5.284 low: -7.647 |
|
| Operating Cash Flow Ratio | 0.169 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 35.713 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 7.721 | |
| Dividend Payout Ratio | 0.13 | |
| Dividend Rate | $ 0.75 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.066 % | |
| Revenue Growth | 13.244 % | |
| Revenue Growth QoQ | -1.736 % | |
| Revenue Growth YoY | -29.855 % | |
| Revenue Growth IPRWA | high: 107.793 % median: 28.84 % mean: 18.997 % RCL: 13.244 % low: -79.06 % |
|
| Earnings Growth | 31.279 % | |
| Earnings Growth QoQ | -49.242 % | |
| Earnings Growth YoY | -49.545 % | |
| Earnings Growth IPRWA | high: 308.571 % median: 308.571 % mean: 193.947 % RCL: 31.279 % low: -148.197 % |
|
| MARGINS | ||
| Gross Margin | 51.742 % | |
| Gross Margin QoQ | 4.128 % | |
| Gross Margin YoY | 1.328 % | |
| Gross Margin IPRWA | high: 95.594 % RCL: 51.742 % median: 46.216 % mean: 41.111 % low: -40.644 % |
|
| EBIT Margin | 35.552 % | |
| EBIT Margin QoQ | 11.806 % | |
| EBIT Margin YoY | 1.109 % | |
| EBIT Margin IPRWA | RCL: 35.552 % high: 26.665 % median: 26.665 % mean: 19.592 % low: -74.393 % |
|
| Return On Sales (ROS) | 33.119 % | |
| Return On Sales QoQ | 13.003 % | |
| Return On Sales YoY | -5.81 % | |
| Return On Sales IPRWA | RCL: 33.119 % high: 27.867 % median: 27.867 % mean: 20.521 % low: -74.535 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -989.00 M | |
| Free Cash Flow Yield | -1.144 % | |
| Free Cash Flow Yield QoQ | -207.116 % | |
| Free Cash Flow Yield YoY | -196.377 % | |
| Free Cash Flow Yield IPRWA | high: 3.562 % median: 1.899 % mean: 0.685 % RCL: -1.144 % low: -119.666 % |
|
| Free Cash Growth | -208.681 % | |
| Free Cash Growth QoQ | 765.788 % | |
| Free Cash Growth YoY | 4.71 % | |
| Free Cash Growth IPRWA | high: -30.256 % median: -52.304 % mean: -99.694 % RCL: -208.681 % low: -369.143 % |
|
| Free Cash To Net Income | -0.628 | |
| Cash Flow Margin | 37.614 % | |
| Cash Flow To Earnings | 1.227 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.005 % | |
| Return On Assets QoQ | 25.785 % | |
| Return On Assets YoY | 33.456 % | |
| Return On Assets IPRWA | RCL: 4.005 % high: 3.632 % median: 3.632 % mean: 2.773 % low: -3.214 % |
|
| Return On Capital Employed (ROCE) | 6.379 % | |
| Return On Equity (ROE) | 0.156 | |
| Return On Equity QoQ | 18.254 % | |
| Return On Equity YoY | -1.04 % | |
| Return On Equity IPRWA | high: 0.191 RCL: 0.156 median: 0.155 mean: 0.106 low: -0.437 |
|
| DuPont ROE | 16.354 % | |
| Return On Invested Capital (ROIC) | 4.753 % | |
| Return On Invested Capital QoQ | 17.503 % | |
| Return On Invested Capital YoY | -94.922 % | |
| Return On Invested Capital IPRWA | high: 5.642 % median: 5.642 % RCL: 4.753 % mean: 4.563 % low: -4.932 % |
|