Latest news with #RoyalCaribbeanCruises
Yahoo
01-07-2025
- Business
- Yahoo
Royal Caribbean Cruises Jumps Into the Top 100 Stocks to Buy. Should You Bite?
The shortened trading week due to the Fourth of July holiday on Friday started strong on Monday, with the S&P 500 closing at a record high, generating a 10.57% return in the second quarter. One of the stocks benefiting from the index's 0.52% gain yesterday was Royal Caribbean Cruises (RCL), one of the world's largest cruise operators. RCL stock was up 1.2% on the day, jumping into Barchart's Top 100 Stocks to Buy, in the 87th spot. Elon Musk's Tesla Makes History With 'First Time That a Car Has Delivered Itself to Its Owner' This Defense Stock Could Be the Next Palantir. Should You Buy It Now? Cathie Wood Is Pounding the Table on AMD Stock. Should You Buy Shares Now? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. In the past year, Royal Caribbean's stock has gained over 100%, hitting 52-week highs on 46 occasions. As I write this on Tuesday morning, RCL stock is trading above $316, poised to set an all-time high. Times have changed significantly since hitting a 10-year low of $19.25 in March 2020, driven entirely by a global shutdown in travel due to the COVID-19 pandemic. I've been a long-time bull when it comes to cruise stocks generally--and Royal Caribbean Cruises specifically. I like the way it operates its business. I don't see cruising slowing down without an outside economic or health-related situation slowing it down. That said, it has never traded higher, and while it has significant momentum—up 21% in the past month alone—its valuation is moving into nosebleed territory. The FOMO (fear of missing out) on RCL is high. Should you bite and buy some of its stock? Here are the pros and cons of doing so. In one word: Valuation. It ain't cheap. Analysts expect it to earn $15.42 a share in 2025 and $17.66 in 2026. At its current share price of $316.99, it trades at 20.6 times its forward 2025 EPS and 17.9 times its forward 2026 EPS. The bullish argument you can make is that this multiple isn't excessive compared to the S&P 500, which currently trades at 21.9x its 2026 forward earnings. Before the pandemic, RCL stock had never traded above $150, with a forward EPS multiple no higher than 15.36x (as of the end of 2017), according to S&P Global Market Intelligence. How do analysts feel about RCL stock? Of the 24 covering RCL, 19 rate it a Buy (4.54 out of 5), so it's highly regarded by Wall Street. However, the mean target price is $275, 13% lower than its current share price. Another potential negative aspect of RCL stock beyond valuation is the price of oil. It's been relatively benign over the past few years, with a barrel of West Texas Intermediate (WTI) hitting a five-year high of $114.84 in May 2022. Since then, it has fallen to $62.50 as of May. Adjusted for inflation, it's fallen by half. Oil prices account for a significant chunk of every cruise line's operating expenses. In 2022, Royal Caribbean paid out $1.07 billion for fuel, representing a 178% increase from the amount paid in 2021. In 2024, it paid out $1.16 billion, which isn't a substantial increase considering the additional revenue generated. However, in 2024, fuel accounted for 7.0% of its revenue, compared to over 12% in 2022. That was the difference between an operating margin of 24.9% in 2024 and -8.2% in 2022. While it doesn't look like the Iran/Israel/US situation is going to spin out of control, if it does, oil prices are sure to rise over $100 in no time. That's never good news for cruise stocks. If oil prices hit $100 a barrel, you can be sure Royal Caribbean's ability to deliver $17.66 in earnings per share in 2026 won't be doable. As Clint Eastwood said in Dirty Harry, 'Do ya feel lucky, punk? Well, do ya?' The trend remains your friend, and I'm not talking about the stock's momentum, but rather the ongoing demand for cruising. It's off the charts. Back in June 2023, I suggested that cruise stocks remained a Buy. 'If the demand keeps up for the next 12-24 months and it gets its operating margins back to where they were pre-pandemic, $94 will appear very cheap for RCL stock,' I wrote in 2023. 'Whether you're looking at RCL, CCL, or NCLH, their stocks have more room to run in the second half of 2023.' Royal Caribbean's stock has gained 237% in the 24 months since, suggesting I wasn't the only one who felt the cruise operator's stock had room to run. And run it did. Is it too late to buy? Maybe. However, barring a major flare-up in the Middle East, the demand for cruising remains high, as does profitability. The company reported strong Q1 2025 earnings at the end of April, including an upward revision to its annual guidance. It now expects to grow its earnings per share to $15.05 at the midpoint of its guidance, from a 3.5% increase in net yield. The net yield is revenue generated per available cruise day, after accounting for commissions, transportation, and other cruise-related expenses. The 3.5% increase is in addition to an 11.6% increase in 2024. 'Bookings for 2025 have remained on track, cancellation levels are normal, and we continue to see excellent close-in demand," said Jason Liberty, Royal Caribbean's CEO, in the company's April 29 press release. If you do buy a cruise stock, Royal Caribbean is the best option among them. If you need the money in a year for your kid's college education, I wouldn't risk it. However, if you are willing to put aside some dry powder to buy more should RCL stock hit a rough patch in the next year, it's one of the best S&P 500 stocks to own for the long haul. I write a fair bit about options. They're an inexpensive way to bet on RCL's stock moving higher over the next 6-12 months. The simplest move would be to buy a call deep OTM (out of the money) like the June 18/2026 $410, which will cost you $19.50, or 6.12% of its stock price. If the share price at expiration is above $429.50 (38.55% higher), you'll, at worst, break even on the bet, and if it closes much higher than that, you'll profit nicely from the difference between the share price and the lower strike price. Worst-case scenario, its share price goes nowhere, and it expires worthless. However, should it move higher, but not quite to the breakeven point of $429.50, you could sell the option before it expires to recover some of your net debit, thereby reducing your loss on the trade. Will RCL stock be over $429.50 by next June? I'd be shocked if it were, despite my belief that it's an excellent long-term investment. On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
30-05-2025
- Business
- Yahoo
Be Sure To Check Out Royal Caribbean Cruises Ltd. (NYSE:RCL) Before It Goes Ex-Dividend
Readers hoping to buy Royal Caribbean Cruises Ltd. (NYSE:RCL) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves a full business day. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase Royal Caribbean Cruises' shares on or after the 4th of June, you won't be eligible to receive the dividend, when it is paid on the 3rd of July. The company's upcoming dividend is US$0.75 a share, following on from the last 12 months, when the company distributed a total of US$3.00 per share to shareholders. Based on the last year's worth of payments, Royal Caribbean Cruises has a trailing yield of 1.2% on the current stock price of US$254.44. If you buy this business for its dividend, you should have an idea of whether Royal Caribbean Cruises's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Royal Caribbean Cruises paid out just 14% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. The good news is it paid out just 12% of its free cash flow in the last year. It's positive to see that Royal Caribbean Cruises's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. See our latest analysis for Royal Caribbean Cruises Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see Royal Caribbean Cruises earnings per share are up 5.9% per annum over the last five years. Earnings per share have been increasing steadily and management is reinvesting almost all of the profits back into the business. This is an attractive combination, because when profits are reinvested effectively, growth can compound, with corresponding benefits for earnings and dividends in the future. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, Royal Caribbean Cruises has increased its dividend at approximately 9.6% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. From a dividend perspective, should investors buy or avoid Royal Caribbean Cruises? Earnings per share have been growing moderately, and Royal Caribbean Cruises is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Royal Caribbean Cruises is halfway there. It's a promising combination that should mark this company worthy of closer attention. On that note, you'll want to research what risks Royal Caribbean Cruises is facing. Every company has risks, and we've spotted 2 warning signs for Royal Caribbean Cruises you should know about. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
29-05-2025
- Entertainment
- Yahoo
It's not just kissing swans anymore. Towel art has risen to a whole new level.
As any traveler can attest to, it's the unique touches in hotel rooms and cruise cabins that make a trip that much more memorable. For both adults and children, there's nothing more uplifting than walking into your room to find a towel folded into the shape of a lovable animal. But how did the art form of origami make its way to the hospitality industry? The history of origami is as complex as the intricately folded paper. Many scholars believe that the invention of paper in China, around 100 B.C.E., coincided with the first attempts at paper folding. It was the Japanese who made origami, originally known as orikata, a large part of their culture. Because paper was very expensive, the art form was mostly used for religious rituals by the wealthy, including wrapping offerings to the gods. It wasn't until the Edo period (1603-1868) and the cost reduction of the washi paper that origami became more widespread. With the end of sakoku, the isolationist foreign policy, and the opening of trade, origami began seeing more foreign influence. Friedrich Froebel, the man responsible for kindergarten, used paper folding between 1851 and the 1920s to teach children mathematical knowledge. The art form didn't stop at paper. As early as 1529, high courts of Europe folded linen and other fabrics for decoration. Today, the art of origami inspires advancements in fields like architecture, medicine, biology, and robotics. Some modern-day inventions that are in debt to origami engineering are the ability for rapid rebuilding of structures following natural disasters; and for creating a small, flexible tool that attaches to laparoscopes and endoscopes that can quickly expand and contract so that surgeons can clean the scope without having to remove it from the surgical site. (Origami is revolutionizing technology, from medicine to space) As for towel origami, according to Stefan Christoffersson, vice president of housekeeping and logistics at Carnival Cruise Line, it was first popularized by a lieutenant of the cabin in the 1980s, and as it gained popularity, became an official part of the cruise line's stay in 1991. The popularity of towel art has maintained its appeal and Carnival even went as far as offering on-board classes for guests and publishing a book of 40 designs people could try at home. Royal Caribbean Cruises has also embraced towel art as an immersive activity for guests, offering classes and a how-to pamphlet. The possibilities are seemingly endless, and websites like Pinterest and Youtube are proof that people are loving every creation and eager to learn the art form for themselves. Even today, towel folding is one of the anticipated highlights of cruise trips. Towel art has now migrated to land and has become a common sight in hotels with a large tourist population, like the Caribbean. Towel origami can be found at larger resorts, like Club Med and Beaches, to smaller hotels like the eco-friendly Black Rock Lodge in Belize. What originated as a show-stopping, elaborate housekeeping trick evolved into something even as small as the clam shell-shaped hand towel in the showers at the Cliff House on the rocky shores of Maine. Towel art goes beyond aesthetics. For some resorts, it adds a more immersive experience for the guests. Felicia Allen-Myers, group manager of butler services at Beaches Resort, says that she once had hotel guests who saved each towel art creation throughout their stay, and by the end of the week, had a complete zoo. The art form has become so integral to guests' stays that Beaches Resort has included towel folding in their butler training. Allen-Myers says that the resort's butlers learn towel art techniques from a senior butler, and also do their own research on YouTube or Pinterest to generate ideas. Most important, says Allen-Meyers, are the conversations that butlers have with their guests. 'We have to understand who the guest is before we can actually create solid art for them.' Depending on the complexity of the design and the skill level, 'basic folds like a heart and swan can take five-to-10 minutes, but for other designs like the butterfly, octopus, dinosaur, or peacock, it may take 10-to-15 minutes—sometimes as much as 30 minutes to an hour,' says Allen-Meyers. Christoffersson notes that while there isn't an official classroom for Carnival employees, 'if you're a housekeeping attendant, your next position would be state assistant, and when they're in the cabins learning with the state of attendants, they will teach them how to create the designs.' The earliest origami designs were butterfly figures used to decorate sake cups at special events like weddings, and of course, the well-known crane design. The crane holds a special role in Japanese culture as a national treasure and is considered the bird of happiness. What originated as a paper crane has now evolved into more diverse designs. (Traditional Japanese crafts are at risk. Here's how travelers can help.) Christoffersson agrees that the designs have become more ambitious. "We just launched for the Australian market, and we took the Carnival Adventure and Carnival Encounter down there, so the team decided to come up with kangaroo towel animals, even including the baby kangaroo in the pouch.' For the 50th anniversary of the Carnival's creation, the staff wanted to create a towel macaw. 'We chose the macaw because it lives around 50 years, so they came up with the various different samples for it, and it turned out really nice.' From cruises to hotels, travelers are excited to enter rooms to find anything from towel monkeys, elephants, kissing swans, and even towel people lounging on beds or even sitting on the toilet reading the newspaper. According to Christoffersson, a false rumor began a few years ago that Carnival was putting an end to towel art in their guest cabins. The staff created a group of towel animals, all holding signs like 'we're not leaving.' The towel animals have spoken, and they're not going anywhere. Megan Margulies, an author and journalist based outside of Boston, writes about health, motherhood, travel, and the natural world.
National Geographic
29-05-2025
- National Geographic
It's not just kissing swans anymore. Towel art has risen to a whole new level.
Towel folding evolved from origami, the Japanese art of paper folding. Photographs by David Brandon Geeting As any traveler can attest to, it's the unique touches in hotel rooms and cruise cabins that make a trip that much more memorable. For both adults and children, there's nothing more uplifting than walking into your room to find a towel folded into the shape of a lovable animal. But how did the art form of origami make its way to the hospitality industry? The history of origami is as complex as the intricately folded paper. Many scholars believe that the invention of paper in China, around 100 B.C.E., coincided with the first attempts at paper folding. It was the Japanese who made origami, originally known as orikata, a large part of their culture. Because paper was very expensive, the art form was mostly used for religious rituals by the wealthy, including wrapping offerings to the gods. It wasn't until the Edo period (1603-1868) and the cost reduction of the washi paper that origami became more widespread. With the end of sakoku, the isolationist foreign policy, and the opening of trade, origami began seeing more foreign influence. Friedrich Froebel, the man responsible for kindergarten, used paper folding between 1851 and the 1920s to teach children mathematical knowledge. Butlers and housekeepers try to create towel art that is unique to a guest's stay. The art form didn't stop at paper. As early as 1529, high courts of Europe folded linen and other fabrics for decoration. Today, the art of origami inspires advancements in fields like architecture, medicine, biology, and robotics. Some modern-day inventions that are in debt to origami engineering are the ability for rapid rebuilding of structures following natural disasters; and for creating a small, flexible tool that attaches to laparoscopes and endoscopes that can quickly expand and contract so that surgeons can clean the scope without having to remove it from the surgical site. (Origami is revolutionizing technology, from medicine to space) As for towel origami, according to Stefan Christoffersson, vice president of housekeeping and logistics at Carnival Cruise Line, it was first popularized by a lieutenant of the cabin in the 1980s, and as it gained popularity, became an official part of the cruise line's stay in 1991. The popularity of towel art has maintained its appeal and Carnival even went as far as offering on-board classes for guests and publishing a book of 40 designs people could try at home. Royal Caribbean Cruises has also embraced towel art as an immersive activity for guests, offering classes and a how-to pamphlet. The possibilities are seemingly endless, and websites like Pinterest and Youtube are proof that people are loving every creation and eager to learn the art form for themselves. Even today, towel folding is one of the anticipated highlights of cruise trips. Many major cruise lines and hotels train their housekeepers and butlers in the art of towel folding. Kids and adults alike look forward to seeing what towel animal will be waiting for them in their room. Towel art has now migrated to land and has become a common sight in hotels with a large tourist population, like the Caribbean. Towel origami can be found at larger resorts, like Club Med and Beaches, to smaller hotels like the eco-friendly Black Rock Lodge in Belize. What originated as a show-stopping, elaborate housekeeping trick evolved into something even as small as the clam shell-shaped hand towel in the showers at the Cliff House on the rocky shores of Maine. Towel art goes beyond aesthetics. For some resorts, it adds a more immersive experience for the guests. Felicia Allen-Myers, group manager of butler services at Beaches Resort, says that she once had hotel guests who saved each towel art creation throughout their stay, and by the end of the week, had a complete zoo. Carnival Cruise Line published a book on 40 different towel art designs people can try at home. The art form has become so integral to guests' stays that Beaches Resort has included towel folding in their butler training. Allen-Myers says that the resort's butlers learn towel art techniques from a senior butler, and also do their own research on YouTube or Pinterest to generate ideas. Most important, says Allen-Meyers, are the conversations that butlers have with their guests. 'We have to understand who the guest is before we can actually create solid art for them.' Depending on the complexity of the design and the skill level, 'basic folds like a heart and swan can take five-to-10 minutes, but for other designs like the butterfly, octopus, dinosaur, or peacock, it may take 10-to-15 minutes—sometimes as much as 30 minutes to an hour,' says Allen-Meyers. Christoffersson notes that while there isn't an official classroom for Carnival employees, 'if you're a housekeeping attendant, your next position would be state assistant, and when they're in the cabins learning with the state of attendants, they will teach them how to create the designs.' Towel folding designs The earliest origami designs were butterfly figures used to decorate sake cups at special events like weddings, and of course, the well-known crane design. The crane holds a special role in Japanese culture as a national treasure and is considered the bird of happiness. What originated as a paper crane has now evolved into more diverse designs. (Traditional Japanese crafts are at risk. Here's how travelers can help.) Christoffersson agrees that the designs have become more ambitious. "We just launched for the Australian market, and we took the Carnival Adventure and Carnival Encounter down there, so the team decided to come up with kangaroo towel animals, even including the baby kangaroo in the pouch.' For the 50th anniversary of the Carnival's creation, the staff wanted to create a towel macaw. 'We chose the macaw because it lives around 50 years, so they came up with the various different samples for it, and it turned out really nice.' From cruises to hotels, travelers are excited to enter rooms to find anything from towel monkeys, elephants, kissing swans, and even towel people lounging on beds or even sitting on the toilet reading the newspaper. According to Christoffersson, a false rumor began a few years ago that Carnival was putting an end to towel art in their guest cabins. The staff created a group of towel animals, all holding signs like 'we're not leaving.' The towel animals have spoken, and they're not going anywhere. Megan Margulies, an author and journalist based outside of Boston, writes about health, motherhood, travel, and the natural world.
Bloomberg
19-05-2025
- Business
- Bloomberg
Royal Caribbean Sheds Junk Status After Moody's Upgrades Credit
Royal Caribbean Cruises Ltd. regained its investment-grade status on Monday after Moody's Ratings upgraded the global cruise operator's credit rating on a strong demand outlook and better credit metrics. Moody's upgraded the cruise line one notch to Baa3, its lowest high-grade rating, from Ba1, its highest junk grade, according to a Monday statement. The action follows a similar move from S&P Global Ratings, which in February elevated Royal Caribbean to its lowest rung of investment-grade status.
