Royal Caribbean Group (RCL)
NYSEConsumer DiscretionaryTravel ServicesSnapshot 2026-09-04
$265.19-0.14%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryTravel ServicesSnapshot 2026-09-04
QuarterlyIQ Insights · RCL
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-09-04.
The screen ranks RCL against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 3 guided quarters · 7.5% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue expanding and differentiating vacation offerings through new ship classes, river cruises, and exclusive land-based destinations by 2028.
Stated as a priority in 6 of last 6 quarters. Management consistently emphasized expanding the vacation portfolio through new ship classes like Discovery Class, river cruises launching in 2027, and increasing exclusive land-based destinations from three to eight by 2028. Capacity growth guidance shows 6.6% increase for 2026 and continued growth in subsequent years. The company took delivery of Legend of the Seas in 2026-Q2 and announced new ship orders with committed financing. The trajectory is delivering with ongoing fleet and destination expansion.
“We continue to expand, elevate and differentiate our portfolio of vacation experiences”
“We are expanding our portfolio through the recent launch of Royal Beach Club Santorini, the upcoming delivery of Legend of the Seas, and the recent orders for Icon VI and Icon VII”
“Expanding vacation portfolio with Royal Caribbean's new Discovery Class and 10 additional ships for Celebrity River Cruises”
“Announces major strategic initiatives to continue expansion of the company's private destination footprint”
“Demand for our portfolio of brands continues to accelerate... Royal Beach Club Paradise Island recently became available for sale”
“Announced expansion of vacation offerings with launch of Celebrity River Cruises, initial order for 10 ships”
Target 20% compound annual growth rate in Adjusted EPS and high teens ROIC by end of 2027 under the Perfecta program.
Stated as a priority in 6 of last 6 quarters. Management consistently targets a 20% compound annual growth rate in Adjusted EPS and ROIC in the high teens by 2027 under the Perfecta program. Adjusted EPS guidance increased from $14.35-$14.65 in 2024 to $17.73-$17.87 for 2026, reflecting a 23% CAGR over two years. The trajectory is delivering with steady EPS growth and reiterated targets.
“Adjusted EPS expected to represent 23% CAGR over first two years of Perfecta program targeting 20% earnings CAGR from 2024 to 2027”
Maintain disciplined cost management while achieving double-digit revenue and earnings growth.
Stated as a priority in 6 of last 6 quarters. Management emphasizes disciplined cost management alongside accelerating revenue growth. Revenue grew from $3.76B in 2024-Q4 to $4.8B in 2026-Q2, and operating income increased from $623M to $1.16B over the same period. Cost growth was often better than guidance due to timing and operational efficiencies. The trajectory is delivering with sustained revenue and profit growth.
Maintain investment grade balance sheet, extend debt maturities, and return capital to shareholders through dividends and share repurchases.
Stated as a priority in 5 of last 6 quarters. Management has consistently emphasized maintaining an investment grade balance sheet and returning capital to shareholders. Liquidity was $6.9B in 2026-Q2. The company returned over $600M to shareholders in 2026-Q2 via share repurchases and dividends, and extended credit facilities to $6.4B with maturities to 2030. The trajectory is delivering with ongoing capital returns and debt management.
Over the trailing year it converted 2.56x of net income into operating cash flow. Historically, Consumer Discretionary names rated robust grew net income 58% of the time over the next year (vs 45% for the rest of the cohort, n=3652).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
23 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Consumer Discretionary names rated volatile grew net income 59% of the time over the next year (vs 48% for the rest of the cohort, n=1937).
Not investment advice. As of 2026-09-04.
“Perfecta program targets a 20% earnings CAGR from 2024 to 2027 and ROIC in the high teens by 2027”
“We remain on track to achieve our Perfecta goals by 2027”
“Expect 2026 earnings per share to have a $17 handle, positioning us well to achieve our 2027 Perfecta targets”
“We are well on our way to achieving our Perfecta financial targets by the end of 2027”
“Perfecta Program targets 20% compound annual growth rate in Adjusted EPS compared to 2024 and ROIC of 17% or higher by the end of 2027”
“Strong close-in demand, lower costs, and favorable performance from joint ventures drove results above expectations”
“Better than expected revenue, lower costs, and better performance from joint ventures”
“Demand continues to accelerate; focused on delivering exceptional value and managing costs”
“Strong momentum powered by accelerated demand, growing loyalty, and guest satisfaction”
“Strong close-in demand, lower costs driven primarily by timing, and favorability below the line”
“Stronger than expected pricing on close-in demand and lower costs mainly due to timing”
“Returned over $600 million to shareholders through $199 million of share repurchases and $404 million of dividend payments”
“Returned approximately $1.1 billion to shareholders through $836 million of share repurchases and $270 million of dividend payments”
“Completed $1 billion share repurchase program, currently has $1.8 billion remaining under current program authorization”
“Repurchased approximately 1.3 million shares under existing share repurchase program”
“Amended and upsized unsecured revolving credit facilities to $6.4 billion, extending maturity to 2030”