Royal Caribbean Cruises Ltd
Royal Caribbean Cruises Ltd. operates as a cruise company. As of December 31, 2019, the company operated 61 ships and had 17 ships on order. STOCK VALUE Good value based on its PE Ratio of 3.8x compared to the Hospitality industry average of 12.7x. FINANCIAL HEALTH Their debt to equity ratio (85.4%) is considered high but has reduced significantly over the past 5 years. Their current debts are well covered by operating cash flow. Recent developments regarding COVID-19 leave future revenue at a high level of uncertainty. BULLISH OUTLOOK If COVID-19 recedes quickly, they will be able to resume business and would bounce back financially as well. Fuel prices are rapidly declining. The nascent Asia-Pacific market remains promising post COVID-19. This provides an opportunity for long-term growth. BEARISH OUTLOOK COVID-19 has unleashed a handful of problems for them financially. In the event that the pandemic continues it is likely that they will either face an enormous amount of debt or will need intervention from the government in order to stay in business. As of this writing the government has not announced any financial support for the cruise ship industry. In the event that the government provides financial support for them it may be possible that the government will demand an equity stake in their business in return. CHART SAYS
Heavily Oversold The stock has dropped from $134 to $19 in the last 2 months. Support levels of $102, $71 and $53 have broken down and may become levels of resistance in the future.
Support line (potential buy target) at $26 FULL COMPANY OVERVIEW Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, and Silversea Cruises brands. The Royal Caribbean International brand provides itineraries to destinations worldwide, including Alaska, Asia, Australia, Bahamas, Bermuda, Canada, the Caribbean, Europe, the Panama Canal, and New Zealand with cruise lengths that range from 2 to 19 nights. The Celebrity Cruises brand offers itineraries to destinations, such as Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, India, New Zealand, the Panama Canal, and South America with cruise lengths ranging from 2 to 19 nights. The Azamara Club Cruises brand offers cruise itineraries to destinations, including Asia, Australia/New Zealand, Northern and Western Europe, the Mediterranean, Cuba, and South America with cruise lengths ranging from 3 to 26 nights. The Silversea Cruises brand provides itineraries to destinations, including the Galapagos Islands, Antarctica, and the Arctic with cruise lengths ranging from 6 to 25 nights. As of December 31, 2019, the company operated 61 ships and had 17 ships on order. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.