Royal Caribbean Group (NYSE:RCL) has a beta of 2.84. The stock’s Relative Strength Index (RSI) is 42.14, with weekly volatility at 3.09% and ATR at 2.97. The RCL stock’s 52-week price range has touched low of $45.06 and a $99.24 high. Its shares traded lower over the last trading session, losing -0.89% on 06/18/21. The shares fell to a low of $84.50 before closing at $85.64. Intraday shares traded counted 4.05 million, which was -7.69% lower than its 30-day average trading volume of 3.76M. RCL’s previous close was $86.41 while the outstanding shares total 243.00M.
Investors have identified the Travel Services company Royal Caribbean Group 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 $22.00 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 Group (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 5.09 billion on their books with 221.3 million 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 5.65 billion total, with 3.31 billion as their total liabilities.
RCL were able to record -1.87 billion as free cash flow during the 08/03/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.41 billion. In cash movements, the company had a total of -809.18 million as operating cash flow.
Potential earnings growth for Royal Caribbean Group (RCL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/03/2021 quarter of the year, Royal Caribbean Group recorded a total of 42.01 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -4738.27% coming in sequential stages and their sales for the 08/03/2021 quarter increasing by 18.75%.
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 283.49 million trying to sell their products during the last quarter, with the result yielding a gross income of -241.47 million. This allows shareholders to hold on to 243.00M with the recently reported earning now reading -4.66 cents per share. This is a figure that compared to analyst’s prediction for their 08/03/2021 (-4.44 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.51 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, Director, Wilhelmsen Arne Alexander sold 442,894 shares of the company’s stock in a transaction that recorded on Jun 08. The sale was performed at an average price of 95.22, for a total value of 42,172,455. As the sale deal closes, the Director, Wilhelmsen Arne Alexander now sold 278,720 shares of the company’s stock, valued at 26,355,680. Also, SVP, Finance, Holtz Naftali sold 5,465 shares of the company’s stock in a deal that was recorded on May 25. The shares were price at an average price of 88.88 per share, with a total market value of 485,683. Following this completion of acquisition, the EVP, Chief Financial Officer, Liberty Jason T now holds 3,000 shares of the company’s stock, valued at 266,310. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
6 out of 17 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Royal Caribbean Group. 2 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 $93.27.