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Royal Caribbean Cruises Ltd. (NYSE: RCL) – Is this large market cap stock undervalued?

Royal Caribbean Cruises Ltd. (NYSE: RCL), is firmly in the large market cap category with market cap of 15974.44. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Royal Caribbean Cruises Ltd. is 74.21 (with a change from open of -0.62%), this in conjunction with a target price of 94.5. Volume today has so far reached 2029600, with an average volume of about 2474.76. The GAP for this stock, is 0.43%.

The P/E ratio is 21.24, bringing the forward P/E to a value of 10.61. The current EPS for Royal Caribbean Cruises Ltd., is 3.49, with a EPS growth for this year coming to a value of -11.90%. Performance has been interesting with performance year to date coming to -25.44%.

Looking further into the growth statistics for Royal Caribbean Cruises Ltd., EPS is looking like it will grow 15.10% in the next year. Looking even further it is projected to be 20.03%. Quarter over quarter is 27.00% for EPS growth and for sales growth quarter over quarter it is 2.30%. Looking at past EPS growth statistics we see that for the past five years it has been 5.00%. Sales growth for the past five years has in fact been 4.20%.

Looking at the ownership, we see that the insider ownership is at 1.00% and institutional ownership is 77.70%. Shares outstanding is 215.26, while shares float is at a value of 167.91. Float short for Royal Caribbean Cruises Ltd. is 8.12% and the short ratio is 5.51.

In terms of debt, long term debt/equity is 1.12, while the total debt/equity comes to 1.23. The ability to meet these debts, means that the current ratio is 0.2, and the quick ratio is 0.2. The most recent gross margin is 39.50% and their operating margin is 11.30%. The profit margin is 9.10%.

Royal Caribbean Cruises Ltd. has seen returns on assets of 3.60%, and on investment, 5.30%. Return on equity is 9.50%. Price/Earnings to growth ratio is 1.06. Price/Sales ratio is at a value of 1.89, with Price/book ratio coming to 1.96 and Price/cash is 91.18, and finally Price/Free cash Flow is *TBA.

The simple moving averages are 6.16% and -2.00% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -27.02% and the 52 week low is 17.52%.

Royal Caribbean Cruises Ltd. has a dividend yield of 2.59%, with a current price of 74.21. The ability to pay this means the payout ratio is 42.70%. This is in an industry, Resorts & Casinos, with equally high dividends from other companies in this sector, which it is Services. Royal Caribbean Cruises Ltd. is based in USA.

Performance in the Resorts & Casinos industry means that Royal Caribbean Cruises Ltd. has seen performance for the past week of 10.10%, with performance for the month coming to 6.76%. Looking at the data for the quarter it is at a value of 10.15%, and for the half year the performance is -11.76%. Volatility for this week is 3.76% and for the month this is 2.59%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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