Royal Caribbean: Strong Operational Performance Amid Valuation Cautions

26 days ago

Anand Chokkavelu

"Royal Caribbean very much the cream of the crop when it comes to how it performed both during the pandemic and coming out of it. They have seen huge demand with load factors above 100% and yet, despite the strong operational performance, the share price has tripled since 2019 with a 25% higher share count."

The panel discusses Royal Caribbean's remarkable recovery from the pandemic, citing operational strengths such as high load factors, innovative ecosystem expansion, and solid management execution. However, despite these positives, concerns about high capital intensity, significant debt levels, increased share count, and potential overvaluation due to a meme stock following temper the enthusiasm, suggesting that the stock's price may need to correct before it becomes an attractive trade.

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