Royal Caribbean Cruises Ltd. [NYSE: RCL] shares went lower by -8.05% from its previous closing of $89.55, now trading at the price of $82.34, also adding -7.21 points. Is RCL stock a buy or should you stay away?

The stock had a rather active trading session with the latest closing, by far recording 9.75 million contracts. Compared to the average trading volume of RCL shares, the company saw a far better performance. Moreover, the stock has a 171.29M float and a -25.83% run over in the last seven days. RCL share price has been hovering between $135.32 and $89.29 lately, and is definitely worthy of attention.

Royal Caribbean Cruises Ltd. [NYSE:RCL]: Analyst Rating and Earnings

Its stock price has been found in the range of 89.29 to 135.32. This is compared to its latest closing price of $89.55.

Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on 04/24/2020.

Fundamental Analysis of Royal Caribbean Cruises Ltd. [RCL]

Now let’s turn to look at profitability: with a current Operating Margin for Royal Caribbean Cruises Ltd. [RCL] sitting at +19.02 and its Gross Margin at +33.26, this company’s Net Margin is now 16.90%. These measurements indicate that Royal Caribbean Cruises Ltd. [RCL] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 8.88, and its Return on Invested Capital has reached 8.80%. Its Return on Equity is 16.15, and its Return on Assets is 6.48. These metrics all suggest that Royal Caribbean Cruises Ltd. is doing well at using the money it earns to generate returns.

Turning to investigate this organization’s capital structure, Royal Caribbean Cruises Ltd. [RCL] has generated a Total Debt to Total Equity ratio of 96.46. Similarly, its Total Debt to Total Capital is 49.10, while its Total Debt to Total Assets stands at 38.70. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 5.10, and its Long-Term Debt to Total Capital is 74.12.

What about valuation? This company’s Enterprise Value to EBITDA is 10.19 and its Total Debt to EBITDA Value is 3.32. The Enterprise Value to Sales for this firm is now 3.07, and its Total Debt to Enterprise Value stands at 0.29. Royal Caribbean Cruises Ltd. [RCL] has a Price to Book Ratio of 2.29, a Price to Cash Flow Ratio of 7.54 and P/E Ratio of 9.20. These metrics all suggest that Royal Caribbean Cruises Ltd. is more likely to generate a positive ROI.

Similarly, this company’s Receivables Turnover is 34.75 and its Total Asset Turnover is 0.38. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.13 and its Current Ratio is 0.15. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

Royal Caribbean Cruises Ltd. [RCL] has 216.95M shares outstanding, amounting to a total market cap of $17.86B. Its stock price has been found in the range of 89.29 to 135.32. At its current price, it has moved down by -39.15% from its 52-week high, and it has moved down -7.78% from its 52-week low.

This stock’s Beta value is currently 1.42, which indicates that it is 6.26% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 14.35. This stock, according to these metrics, is currently Oversold.

Conclusion: Is Royal Caribbean Cruises Ltd. [RCL] a Reliable Buy?

Shares of Royal Caribbean Cruises Ltd. [RCL], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.