CCL - Royal Caribbean: Smooth Operator Shrewd Profiteer

2024-06-23 21:07:42 ET

Summary

• Royal Caribbean is undervalued and poised for double-digit growth due to strong EBITDA growth and favorable balance sheet management.
• The company is expected to benefit from double-digit growth in the cruise industry and higher net yields compared to competitors.
• Management's efficient debt management and plans for capacity expansion contribute to a positive investment thesis for Royal Caribbean.

Investment Thesis

Lately, I have been covering cruise operators because I believe, within the travel segment, cruise companies are among the most underappreciated travel complexes of stocks. Cruise companies still carry a pessimistic image among a few of the investment companies, despite overall travel demand remaining strong as we move through the summer months. I had recently covered Norwegian Cruise Lines ( NCLH ) as well as Carnival Corp. ( CCL ), where I assessed the earnings growth of both companies versus their respective debt ratios....

For further details see: