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....
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Royal Caribbean: Smooth Operator, Shrewd Profiteer