Royal Stock Buy Hold or Sell Recommendation

RCL
 Stock
  

USD 42.46  4.87  12.96%   

Considering the 90-day investment horizon and complete risk avoidance on your part, our recommendation regarding Royal Caribbean Cruises is 'Strong Sell'. Macroaxis provides Royal Caribbean buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RCL positions. The advice algorithm takes into account all of Royal Caribbean's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Royal Caribbean's buy-and-hold perspective. Additionally, take a look at Royal Caribbean Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Royal and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Royal Caribbean Cruises.

Execute Royal Caribbean Buy or Sell Advice

The Royal recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Royal Caribbean Cruises. Macroaxis does not own or have any residual interests in Royal Caribbean Cruises or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Royal Caribbean's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Royal CaribbeanBuy Royal Caribbean
Strong Sell

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

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Economic Sensitivity

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Analyst Consensus

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Reporting Quality (M-Score)

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For the selected time horizon Royal Caribbean Cruises has a Mean Deviation of 3.64, Semi Deviation of 4.66, Standard Deviation of 4.58, Variance of 21.02, Downside Variance of 25.98 and Semi Variance of 21.7
Royal Caribbean advice module can be used to check and cross-verify current recommendation provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Royal Caribbean is not overpriced, please check all Royal Caribbean Cruises fundamentals, including its book value per share, and the relationship between the cash and equivalents and number of employees . Given that Royal Caribbean Cruises has a price to earning of 65.20 X, we recommend you to check out Royal Caribbean Cruises market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Royal Caribbean Trading Alerts and Improvement Suggestions

Royal Caribbean has very high historical volatility over the last 90 days
The company has 23.85 B in debt with debt to equity (D/E) ratio of 7.02, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Royal Caribbean Cruises has a current ratio of 0.29, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Royal Caribbean until it has trouble settling it off, either with new capital or with free cash flow. So, Royal Caribbean's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Royal Caribbean Cruises sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Royal to invest in growth at high rates of return. When we think about Royal Caribbean's use of debt, we should always consider it together with cash and equity.
The entity reported the last year's revenue of 4.68 B. Reported Net Loss for the year was (4.47 B) with loss before taxes, overhead, and interest of (1.08 B).
Royal Caribbean Cruises has about 2.1 B in cash with (658.47 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.24.
Over 76.0% of Royal Caribbean shares are owned by institutional investors
Latest headline from stocknews.com: Royal Caribbean exotic insider transaction detected

Royal Caribbean current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Royal analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Royal analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price76.14
Target Median Price74.00
Target High Price136.00
Recommendation Mean2.40
Number Of Analyst Opinions14
Target Low Price35.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Royal Caribbean Returns Distribution Density

The distribution of Royal Caribbean's historical returns is an attempt to chart the uncertainty of Royal Caribbean's future price movements. The chart of the probability distribution of Royal Caribbean stock daily returns describes the distribution of returns around its average expected value. We use Royal Caribbean Cruises price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Royal Caribbean returns is essential to provide solid investment advice for Royal Caribbean.
Mean Return0.22Value At Risk-7.54
Potential Upside7.15Standard Deviation4.58
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Royal Caribbean historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Royal Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Royal Caribbean is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Royal Caribbean Cruises backward and forwards among themselves. Royal Caribbean's institutional investor refers to the entity that pools money to purchase Royal Caribbean's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Parallax Volatility Advisers LpDebt13.5 M1.3 B
Capital International InvestorsCommon Shares29.8 MB
Vanguard Group IncCommon Shares23.6 M823.1 M
Capital Research Global InvestorsCommon Shares15.8 M551.8 M
Blackrock IncCommon Shares15 M522.2 M
State Street CorpCommon Shares8.2 M286.3 M
Jpmorgan Chase CoCommon Shares5.4 M188.4 M
Primecap Management CoCommon Shares5.2 M182.3 M
Citadel Advisors LlcCall Options4.6 M161.9 M
Citadel Advisors LlcPut Options2.7 M95.4 M
Note, although Royal Caribbean's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Royal Caribbean Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Royal Caribbean or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Royal Caribbean's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Royal stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.35
β
Beta against DOW2.18
σ
Overall volatility
4.83
Ir
Information ratio 0.06

Royal Caribbean Volatility Alert

Royal Caribbean Cruises exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Royal Caribbean Cruises individually to make sure intended market timing strategies and available technical indicators are consistent with their estimates about Royal Caribbean future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Royal Caribbean's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Royal Caribbean's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Royal Caribbean Implied Volatility

Royal Caribbean's implied volatility exposes the market's sentiment of Royal Caribbean Cruises stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Royal Caribbean's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Royal Caribbean stock will not fluctuate a lot when Royal Caribbean's options are near their expiration.

Royal Caribbean Fundamentals Vs Peers

Comparing Royal Caribbean's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Royal Caribbean's direct or indirect competition across all of the common fundamentals between Royal Caribbean and the related equities. This way, we can detect undervalued stocks with similar characteristics as Royal Caribbean or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Royal Caribbean's fundamental indicators could also be used in its relative valuation, which is a method of valuing Royal Caribbean by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Royal Caribbean to competition
FundamentalsRoyal CaribbeanPeer Average
Return On Equity(79.25) %(0.31) %
Return On Asset(5.70) %(0.14) %
Profit Margin(95.46) %(1.27) %
Operating Margin(65.83) %(5.51) %
Current Valuation31.62 B16.62 B
Shares Outstanding254.79 M571.82 M
Shares Owned by Insiders13.81 %10.09 %
Shares Owned by Institutions75.86 %39.21 %
Number of Shares Shorted17.21 M4.71 M
Price to Earning65.20 X28.72 X
Price to Book1.05 X9.51 X
Price to Sales2.06 X11.42 X
Revenue4.68 B9.43 B
Gross Profit(1.08 B)27.38 B
EBITDA(1.73 B)3.9 B
Net Income(4.47 B)570.98 M
Cash and Equivalents2.1 B2.7 B
Cash per Share8.24 X5.01 X
Total Debt23.85 B5.32 B
Debt to Equity7.02 %48.70 %
Current Ratio0.30 X2.16 X
Book Value Per Share36.04 X1.93 K
Cash Flow from Operations(658.47 M)971.22 M
Short Ratio2.19 X4.00 X
Earnings Per Share(24.62) X3.12 X
Price to Earnings To Growth(0.11) X4.89 X
Number of Employees84.9 K18.84 K
Beta2.53-0.15
Market Capitalization9.66 B19.03 B
Total Asset20.78 B29.47 B
Retained Earnings7.86 B9.33 B
Working Capital(3.46 B)1.48 B
Current Asset837.02 M9.34 B
   Royal Caribbean exotic insider transaction detected [view details]

Royal Caribbean Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Royal . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Royal Caribbean Buy or Sell Advice

When is the right time to buy or sell Royal Caribbean Cruises? Buying financial instruments such as Royal Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Royal Caribbean in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Stores Thematic Idea Now

Stores
Stores Theme
Companies providing different types of retail and wholesale services. The Stores theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Stores Theme or any other thematic opportunities.
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Additionally, take a look at Royal Caribbean Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Royal Caribbean Cruises information on this page should be used as a complementary analysis to other Royal Caribbean's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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Is Royal Caribbean's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Royal Caribbean. If investors know Royal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Royal Caribbean listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Royal Caribbean Cruises is measured differently than its book value, which is the value of Royal that is recorded on the company's balance sheet. Investors also form their own opinion of Royal Caribbean's value that differs from its market value or its book value, called intrinsic value, which is Royal Caribbean's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Royal Caribbean's market value can be influenced by many factors that don't directly affect Royal Caribbean's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Royal Caribbean's value and its price as these two are different measures arrived at by different means. Investors typically determine Royal Caribbean value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Royal Caribbean's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.