On the stock market since 1993, it operates in the world of consumer spending. It has 108,000 employees. Now — the numbers.
This is an established company with proven profits.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
Average growth of 85% a year over the last 4 years. Red columns mark years that ended in a loss.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly below the class average.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
angles, checked one by one.
The 2 that stand out are on screen; the rest came back neutral.
The council scores out of 10; report-card grades are out of 100.
The stock trades 20% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 24% — still a thick cushion, though costs have been eating into it lately.
Over the last 3 years, sales grew about 27% a year on average.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, executives reported 164 sells against just 27 buys. Not an alarm bell by itself, but a number worth watching.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 19/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 29/100.
On our five-subject report card, RCL sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: RCL is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Analysts’ average target sits above today’s price, yet the valuation grade (29/100) says the stock isn’t cheap.