Royal Caribbean Cruises

RCL

Travel Services · Consumer Cyclical

Also trades as: 0I1W.L

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Strong

Cash Flow

Good

Stability

Mixed

Valuation

Strong

Dividends

Good

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Winston Score History

The full picture

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.

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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

+6.5% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-5.4% YoY

YoY Growth Rate

Earnings declining

Insider Activity

5.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~3 months

$875M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Short runway — potential dilution ahead through share issuance

Cash watch

Royal Caribbean Cruises has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

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.

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Quality

Profit per sale

Gross Margin

47.3%

Healthy — 47.3% gross margin

Profit after running costs

Operating Margin

27.0%

Excellent — 27.0% operating margin

Return on the money invested

ROCE

15.4%

Strong — 15.4% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+8.7%

Steady sales growth (+8.7% YoY)

Profit growth

EPS YoY

+21.4%

Earnings growing fast (+21.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

154%

Turns 154% of profit into real cash

Spare cash per sale

FCF Margin

-2.2%

Burning cash (-2.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

2.23

Heavy debt load (2.23)

Covers its interest

Interest Cover

4.96x

Adequate interest coverage (5.0x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

17.9x

no trend

Fair value — P/E 17.9

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

Cheaper or dearer next year

P/E vs Forward

+5.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (17.9 → 13.0)

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Dividends

Dividend

Dividend Yield

1.67%

no trend

Small dividend — 1.67% yield

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

Dividend record

Dividend Growth

+104.1%

no trend

Dividend growing fast (104.1% YoY)

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