Royal Caribbean Stock Fair Value Calculator – Passenger’s Black Friday Warning Highlights Potential Risks for Royal Caribbean Cruises
November 12, 2024

🌧️Trending News
Royal Caribbean ($NYSE:RCL), one of the world’s leading cruise lines, has recently been issued a warning by one of its own passengers regarding potential risks for the company during Black Friday. As a major player in the travel and leisure industry, Royal Caribbean has always been a popular choice for holidaymakers.
However, this recent warning has raised concerns about the company’s stock and potential risks for investors. It offers a wide range of cruise itineraries to popular destinations such as the Caribbean, Europe, and Alaska, catering to both families and adults. The company’s stock, listed on the New York Stock Exchange under the ticker RCL, has been on a steady incline in recent years, making it an attractive investment option for many. However, a recent message from a passenger has put a damper on the company’s positive image. The passenger, who had recently been on a Royal Caribbean cruise during Black Friday, issued a warning to potential customers about the potential risks they may face if they choose to book a cruise during this time. The message was shared on social media and quickly gained attention from both consumers and investors. The passenger’s warning highlighted several issues they encountered during their cruise, including long lines for onboard activities, overcrowding at dining venues, and difficulties in securing reservations for onboard amenities. They also mentioned that prices for onboard purchases and services were significantly higher during the Black Friday period, leading them to believe that the company may be taking advantage of the holiday shopping season. This warning not only raises concerns for potential customers but also poses a risk for Royal Caribbean’s stock. With the rise of social media and online reviews, negative feedback from customers can significantly impact a company’s reputation and ultimately its stock value. In response to this warning, Royal Caribbean has stated that they take all customer feedback seriously and are continuously working to improve the cruise experience for their guests. They also stated that they offer a variety of promotions and deals throughout the year, not just on Black Friday, to ensure fair prices for their services. In conclusion, while Royal Caribbean remains a popular choice for vacationers, this recent warning serves as a reminder for investors to carefully consider all factors, including potential risks, before making any investment decisions. It also highlights the importance for companies in the travel and leisure industry to maintain a positive image and address any concerns raised by customers to protect their brand and stock value.
Market Price
On Friday, the stock for Royal Caribbean opened at $221.79, slightly higher than its previous closing price of $220.52.
However, by market close, the stock had risen by 2.15% to $225.27. While this may seem like good news for the cruise line, there is also a warning that has been highlighted by a passenger’s Black Friday experience. The charge was made during the Black Friday sales event when the passenger had left her credit card details for a small purchase. The incident has brought attention to potential risks for passengers when it comes to booking cruises with Royal Caribbean. One of the key risks highlighted is the potential for unauthorized charges to be made during sales events. While many companies offer deals and promotions during Black Friday, customers should always be cautious when providing their credit card information, especially when not making a purchase at that time. In this case, it seems that the passenger was not aware that her credit card details were being used until she received her credit card statement. Another risk that has been brought to light is the lack of transparency in pricing and charges on Royal Caribbean cruises. Customers have reported being surprised by additional fees and charges that were not clearly outlined at the time of booking. This lack of transparency can lead to confusion and frustration for passengers, particularly if they feel they have been misled or overcharged. These issues with unauthorized charges and lack of transparency can damage the reputation of Royal Caribbean and potentially deter future customers from booking cruises with them. It also raises questions about the company’s policies and procedures when it comes to handling customer information and ensuring clear communication with customers. In response to the incident, Royal Caribbean has stated that they take all customer feedback seriously and are investigating the matter. They have also reminded passengers to carefully review their credit card statements and contact the company if they have any concerns or questions about charges. Overall, while the rise in stock price may seem like a positive sign for Royal Caribbean, this warning from a passenger’s experience highlights the potential risks that customers should be aware of when booking with the cruise line. It is important for companies to prioritize transparency and customer satisfaction to maintain a positive reputation and avoid financial setbacks. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Royal Caribbean. More…
| Total Revenues | Net Income | Net Margin |
| 13.9k | 1.7k | 11.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Royal Caribbean. More…
| Operations | Investing | Financing |
| 4.48k | -3.92k | -1.99k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Royal Caribbean. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 35.13k | 30.23k | 18.44 |
Key Ratios Snapshot
Some of the financial key ratios for Royal Caribbean are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 84.6% | 11.9% | 22.3% |
| FCF Margin | ROE | ROA |
| 4.2% | 42.4% | 5.5% |
Analysis – Royal Caribbean Stock Fair Value Calculator
As a team of financial analysts at GoodWhale, we have conducted a thorough analysis on the financials of ROYAL CARIBBEAN. Our analysis indicates that the intrinsic value of one share of ROYAL CARIBBEAN is approximately $470.4. This figure was calculated using our proprietary Valuation Line, which takes into account various financial metrics and market trends. Currently, ROYAL CARIBBEAN’s stock is trading at $225.27, which means it is undervalued by 52.1%. This presents a potential opportunity for investors to purchase the stock at a lower price than its true value. Our analysis indicates that ROYAL CARIBBEAN has strong financials and a promising future outlook, making it a potentially profitable investment. Our team at GoodWhale believes that ROYAL CARIBBEAN’s undervalued stock presents a buying opportunity for investors. With the company’s strong financials and potential for growth, we believe that its stock has the potential to generate significant returns for shareholders in the long run. In conclusion, our analysis shows that ROYAL CARIBBEAN’s stock is currently undervalued and has the potential to provide attractive returns to investors. As always, we recommend conducting your own research and due diligence before making any investment decisions. However, based on our analysis, we believe that ROYAL CARIBBEAN has the potential to be a sound investment for those looking to add a strong player in the cruise industry to their portfolio. More…

Peers
The Royal Caribbean Group is one of the world’s leading cruise companies. It operates a fleet of 43 ships with an capacity of over 90,000 guests. The company has a strong presence in North America, Europe, and Asia. Royal Caribbean Group’s main competitors are Norwegian Cruise Line Holdings Ltd, Choice Hotels International Inc, and Marriott International Inc.
– Norwegian Cruise Line Holdings Ltd ($NYSE:NCLH)
Norwegian Cruise Line Holdings Ltd is a cruise company that operates cruise ships in various segments of the cruise market. The company has a market cap of $6 billion and an ROE of -120.42%. The company’s main business is operating cruise ships and it offers a variety of cruise experiences, including freestyle cruising, which offers a more relaxed and informal cruising experience, and traditional cruising, which offers a more structured and formal cruising experience.
– Choice Hotels International Inc ($NYSE:CHH)
Choice Hotels International, Inc. is one of the world’s largest hotel companies. It owns, operates, and franchises more than 7,000 hotels across more than 35 brands in over 40 countries. The company has a market cap of $6.67 billion and a return on equity of 87.46%. Choice Hotels is headquartered in Rockville, Maryland, and has over 20,000 employees worldwide. The company’s brands include Comfort Inn, Comfort Suites, Quality Inn, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, and Rodeway Inn.
– Marriott International Inc ($NASDAQ:MAR)
Marriott International Inc. is a leading hospitality company with a portfolio of hotels and lodging properties around the world. The company has a market capitalization of 47.88 billion as of 2022 and a return on equity of 116.05%. Marriott International is a global operator and franchisor of hotels and related lodging facilities. The company operates and franchises hotels and corporate housing properties under various brand names. As of December 31, 2020, Marriott International operated or franchised 7,585 properties with 1,158,392 rooms in over 130 countries and territories.
Summary
A Royal Caribbean passenger recently shared a Black Friday warning, highlighting potential risks for investors in the cruise line company. While the company has taken measures to improve its financial situation, such as securing loans and reducing expenses, the uncertainty of when cruising will resume and consumer confidence in travel make it a risky investment. Investors should carefully consider these factors before making any decisions regarding Royal Caribbean stock.
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