2024-02-16 14:00:00 ET
Summary
- Royal Caribbean's EV/ EBITDA premium is well-deserved, since the robust consumer deposit has provided immense insights into its top/ bottom line performance over the next few quarters.
- The same has been concurred by the management's excellent FY2024 guidance, with double digit adj EPS growth and triple digit EBITDA per APCD.
- RCL is expected to record expanding adj EBITDA margins through FY2026, sustained by the robust consumer demand, the strong discretionary spending, and the supposed Fed pivot in H1'24.
- After its debt levels are more manageable, investors may also expect the cruise liner to reinstate dividend payments, further lending strength to its upside potential moving forward.
We previously covered Royal Caribbean Cruises ( RCL ) in November 2023, discussing its excellent reversal from the hyper-pandemic woes, as observed in its consistent debt repayment and moderating weighted average interest rates....
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Royal Caribbean: Cruising To New Heights - Robust EBITDA Margins Ahead