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Carnival Co. &'s stock was trading at $18.54 at the beginning of the year. Since then, CCL stock has decreased by 23.8% and is now trading at $14.12. Gain deeper insights into company revenues with a detailed analysis of revenue sources.
Financial Performance
You simply can't grow something at 50% a year for very long. Carnival also turned unprofitable in fiscal 2020 with a net loss of $2.2 billion, which widened to $9.5 billion in fiscal 2021. But as its business recovered, it narrowed its net loss to $6.1 billion in fiscal 2022 and just $26 million in the first nine months of fiscal 2023.
Better Cruise Line Stock: Carnival vs. Royal Caribbean Cruises - The Motley Fool
Better Cruise Line Stock: Carnival vs. Royal Caribbean Cruises.
Posted: Sun, 03 Mar 2024 08:00:00 GMT [source]
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Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. While the stock is slightly overbought at an all-time high, it could push even higher with demand showing no signs of slowing. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney.
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Carnival, for example, locked in a record $6.4 billion in customer deposits in the final quarter of 2023, up 31% since the fourth quarter of 2019. It is likely that many of the customers who have made deposits will be new-to-cruise customers. And while customers can cancel, most of the deposits the cruise line has collected will likely turn into full payment. Nevertheless, investors should still take into account Carnival's debt -- which is reflected in its higher enterprise value instead of its lower market capitalization -- when valuing its stock. With an enterprise value of $48 billion, Carnival doesn't seem expensive at 2 times next year's sales and 9 times its adjusted EBITDA.
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With a lack of profitability and a potentially slowing economy, the share price might be due for a correction. If you own the stock, it seems like a good opportunity to sell. Carnival Cruise Line is the company’s largest brand serving guests on all coasts of North America. The brand's 22 ships make 1500 voyages per year with trips ranging from 2 days to 3 weeks and ports of call from the Caribbean to Alaska. The company's largest ship is named Panorama and can accommodate more than 4,000 passengers. Proceeds from the offering of senior unsecured notes and cash on hand to be used to redeem €500 million 7.625% senior unsecured notes due 2026; cash on hand to repay $800 million of the term loan faci...
To be fair, Disney offers discounts for buying multi-day passes, but with rates like that, you can see why consumers are increasingly looking to cruises. An entire cruise could cost $600 (or less) per person, and includes the cruise, food, and a room. Cruise ships are also including more and more amenities, like amusement-style rides, water parks, and sports facilities, to better compete for traveler's dollars. That has helped the company increase occupancy levels, ending 2023 at 98% of the pre-COVID average. At the same time, Carnival has been adjusting its business to push customers toward more on-board spending. According to the company, 2023 unit-adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) exceeded 2019 levels.
Explore the updated Options feature, providing in-depth data, and a 3D viewing option. MIAMI , April 2, 2024 /PRNewswire/ -- In recognition of the company's food waste management leadership, Jan Swartz, executive vice president of strategic operations for Carnival Corporation & plc (NYS... The world's largest cruise company's commitment to sustainability and the enchanting beauty of Mahogany Bay in Roatan, Honduras, recognized with top environmental honor MIAMI , April 4, 2024 /PRNewswi... Analyst initiates coverage of Royal Caribbean Cruises with Buy rating and price target of $164.
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By comparison, Royal Caribbean Cruises has a P/S of 2.5, in line with the S&P 500's 2.6 multiple. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Sign-up to receive the latest news and ratings for Carnival Co. & and its competitors with MarketBeat's FREE daily newsletter.
Carnival Corp. (CCL) shares turned higher in intraday trading Wednesday after the cruise line posted a smaller adjusted first-quarter loss than analysts expected. It is wonderful that Carnival is attracting customers who have never been on a cruise before. It improves the outlook for future performance since those customers can become repeat cruisers. But investors need to take this company's talking point with a grain of salt. The numbers are impressive today, but they probably won't remain this impressive for very long. It is just too hard a growth rate to sustain given the economic sensitivity of the industry, the inherent constraints of ships and, well, the way basic math works.
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. 20 analysts have issued 12 month price objectives for Carnival Co. &'s shares.
Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. Carnival offers cruises ranging from shorter voyages and more-casual experiences to a longer, luxury atmosphere, but it will undoubtedly see its results affected should the economy falter.
Royal Caribbean is similarly valued at 3 times next year's sales and 9 times its adjusted EBITDA. Booking volume in the fourth quarter was higher than the pre-pandemic 2019 level. At the end of December, it had two-thirds of its space filled at higher prices than last year. In Carnival's latest quarter, occupancy was more than 101%.
Net revenue, prior to the COVID-19 pandemic, peaked out at over $6.5 billion annually. Carnival Cruise Line was launched in 1972 with one second-hand ship and a tank of fuel. The first port of call was San Juan, Puerto Rico, but soon more were added. The original growth strategy included a festive atmosphere, features and amenities unlike any other cruise line at the time. Slow to start, the growth strategy shifted into overdrive in 1980 when Carnival shocked the world by building its own ship.
For fiscal 2025, analysts expect Carnival's revenue to grow 5% to $25.4 billion, its adjusted EBITDA to rise 10% to $6 billion, and for its net income to increase 54% to $1.8 billion. Investors should take those estimates with a grain of salt, but they strongly suggest Carnival's business will stabilize over the next two to three years. The past few years have been tough on Carnival Corp. (CCL -0.42%). The cruise line operator's revenue plunged in 2020 and 2021 as global travel ground to a halt during the pandemic, and it was forced to take on a lot more debt to stay solvent.
On average, they anticipate the company's share price to reach $21.47 in the next year. This suggests a possible upside of 52.1% from the stock's current price. View analysts price targets for CCL or view top-rated stocks among Wall Street analysts. All thanks to positive booking trends, and stronger consumer demand for cruises. JPMorgan also raised its price target to $23 with an overweight rating. Carnival Corporation & plc is a leisure travel company operating a fleet of cruise ships, hotels, and resorts with international destinations.
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