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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 15823.71. 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 71.52 (with a change from open of 0.27%), this in conjunction with a target price of 93.3. Volume today has so far reached 870438, with an average volume of about 2376.06. The GAP for this stock, is -1.45%.

The P/E ratio is 20.72, bringing the forward P/E to a value of 10.41. 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 -27.28%.

Looking further into the growth statistics for Royal Caribbean Cruises Ltd., EPS is looking like it will grow 14.82% 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 77.20%. Shares outstanding is 218.62, while shares float is at a value of 167.91. Float short for Royal Caribbean Cruises Ltd. is 8.22% and the short ratio is 5.81.

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 1.03. Price/Sales ratio is at a value of 1.87, with Price/book ratio coming to 1.91 and Price/cash is 90.32, and finally Price/Free cash Flow is *TBA.

The simple moving averages are 1.48% and -4.10% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -29.67% and the 52 week low is 13.26%.

Royal Caribbean Cruises Ltd. has a dividend yield of 2.65%, with a current price of 71.52. 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 -3.30%, with performance for the month coming to 7.80%. Looking at the data for the quarter it is at a value of 1.38%, and for the half year the performance is -19.51%. Volatility for this week is 1.73% and for the month this is 2.36%.

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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