Royal Caribbean International 🚢 🌴 (RCL) - Share Chat

This cruise line operator is based in Miami and takes millions of people on holidays every year.

They’ve been available for ages.

Hi guys,

I was surprised to see RCL down to the same levels as the outbreak of covid. I work in the travel industry and was surprised as there has been a big uptick recently. I appreciate there have been a few issues recently surrounding flights, but the EU have just relaxed their Healthy Gateway rules which means you no longer need a test within 24 hours (72 instead). Maybe I am biased, but I was interested in others’ thoughts (also might be the only ever time I will be able to pick up 100 shares for their onboard shareholder perks)


Cant comment on Royal Caribbean directly but for the reasons you mention (very low SP) I took a very high level look at Carnival. Comparing the eye watering debt levels and associated payments to free cash flow they used to earn in previous buoyant times was enough to end my curiosity early on…but maybe I missed something under the bonnet!

Edit, just seen an extract regarding Royal Caribbean so on the face of it they look to be in the same boat (not intended) as Carnival…

" The problem is that the company already has a ton of debt on its balance sheet. According to its 10-Q, Royal Caribbean has $23 billion in total long-term debt, with $2.56 billion due this year. This will be tough to pay off, especially considering that before the pandemic, the company never generated more than $2.5 billion in free cash flow in a year. And with interest rates steadily going higher, the cost of all this debt will likely go up if and when management is forced to refinance."

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Yeah, I agree that they have an absolute mountain of debt. However, mid 2023 they should be breaking even once more and may even reintroduce the dividend that was typically paying 2.5% yield. Simply Wall Street believes they are 50% undervalued and PE looks quite attractive

Has anyone had experience with Royal Caribbean Shareholder Perks , I’ve been looking at it for awhile while and looking to do a big holiday/cruise in the future and wanted to see what people thought about it?