Royal Caribbean Cruises Ltd. (0I1W.L) stock analysis

In our weekly check, Royal Caribbean Cruises Ltd. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 6.

About Royal Caribbean Cruises Ltd.

Royal Caribbean Cruises Ltd. is a Consumer Cyclical company (Travel Services) based in the United States, listed on LSE as 0I1W.L.

What our checks show for 0I1W.L

Red flags

• Net debt is 3.1x a year of EBITDA (debt/equity 2.3). That limits room in a downturn and raises refinancing risk.
• Free cash flow is negative (-2.2% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 97% from a peak. Would you have held through that?
• Beta 1.78: the stock usually moves more than the market, both up and down.
• Thinly traded (about 2 thousand shares a day): buying and selling can move the price.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The price swings a lot: 45.8% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 367 points over 5 years, to 23.6%.
• The gross margin is 37.1% and has risen by 197 points: pricing power is holding.
• Operating cash flow is 1.54x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 15% a year over the next years.
• Analysts expect the net margin to improve by 4.1 points from today's 23.6%.
• Revenue grew 28.3% a year over the last 3 years.

Next earnings report: 2026-10-27

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Questions

What grade does Royal Caribbean Cruises Ltd. (0I1W.L) have?

In our weekly check, Royal Caribbean Cruises Ltd. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0I1W.L stock?

This week's biggest flags for Royal Caribbean Cruises Ltd.: High debt, Weak free cash flow, Deep past fall. In total 8 of 24 checks show a warning or a red flag.

What does Royal Caribbean Cruises Ltd. do?

Royal Caribbean Cruises Ltd. is a Consumer Cyclical company (Travel Services) based in the United States, listed on LSE as 0I1W.L.

When does Royal Caribbean Cruises Ltd. report earnings next?

The next earnings report is expected on 2026-10-27. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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