Value Comp For Royal Caribbean Cruises Ltd. (RCL) Reaches Key 14 Mark

Royal Caribbean Cruises Ltd. (RCL) currently has a Value Composite score of 20.  The Value Composite One (VC1) is a method that investors use to determine a company’s value. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Royal Caribbean Cruises Ltd. (RCL) is 16. The same goes for the Value Composite Three (VC3) which instead of shareholder yield takes into account buyback yield.  That number stands at 14.

When it comes to investing in stocks, the question of risk will eventually need to be addressed. Of course, there are no guarantees when investing in the stock market. With this in mind, investors can proceed with a plan that helps minimize risk while still providing the opportunity to experience large profit potential. Each investor may have a different financial situation or tolerance for risk. There is often a fine line between being too aggressive or too conservative with equity investments. Finding that balance between the two extremes may be exactly what the earnest investor strives to do when tackling the markets.

Watching some historical volatility numbers on shares of Royal Caribbean Cruises Ltd. (RCL), we can see that the 24 month volatility stands at 27.6928, the 12 month volatility is presently 31.0207. The 6 month volatility is 32.6379, and the 3 month is spotted at 25.2381. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period. 

After a recent scan, we can see that Royal Caribbean Cruises Ltd. (RCL) has an Earnings Yield of 0.053163  and a five year earnings mark of 0.039686. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use earnings yield to gauge a baseline rate of return.

The Return on Invested Capital (aka ROIC) for Royal Caribbean Cruises Ltd. (RCL) is 0.081187.  The Return on Invested Capital is a ratio that determines whether a company is profitable or not.  It tells investors how well a company is turning their capital into profits.  The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is calculated by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years.  The ROIC 5 year mark of Royal Caribbean Cruises Ltd. (RCL) is 0.073752.  This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets).  

Ratios

The External Financing Ratio of Royal Caribbean Cruises Ltd. (RCL) is 0.038844.

This factor was introduced by Richard Tortoriello, a senior quantitative analyist for S&P Capital IQ. He authored a book on quantitative analysis: Quantitative Strategies for Achieving Alpha (2009, McGraw Hill). In this book, he identified the External Financing Ratio as a factor that is very good at predicting investment underperformance.

Formula:

External finance ratio=(Total Assets-Total Assets y-1-Cash Flow from Operations)Total Assets”>External finance ratio=(Total AssetsTotal Assets y-1Cash Flow from Operations) divided by Total Assets


Gross Margin Score

Robert Novy-Marx, a professor at the University of Rochester, discovered that gross profitability – a quality factor – has as much power predicting stock returns as traditional value metrics. He found that while other quality measures had some predictive power, especially on small caps and in conjunction with value measures, gross profitability generates significant excess returns as a stand alone strategy, especially on large cap stocks.

Stock Market followers may also be following some quality ratios for Royal Caribbean Cruises Ltd. (RCL). Robert Novy-Marx, a professor at the university of Rochester, discovered that gross profitability – a quality factor – has as much power predicting stock returns as traditional value metrics. He found that while other quality measures had some predictive power, especially on small caps and in conjunction with value measures, gross profitability generates significant excess returns as a stand alone strategy, especially on large cap stocks.The Gross profitability for (RCL) is 0.153411.

Net Debt to Market Cap

This ratio gives a sense of how much debt a company has relative to its market value. Companies with high debt levels compared to their peers can be volatile. We calculate it as follows:

Net Debt to Market Cap=(Total Debt-Cash and ST Investments)Market Cap”>Net Debt to Market Cap=(Total DebtCash and ST Investments) divided by Market Cap


Royal Caribbean Cruises Ltd. (RCL) currently has a net debt to market cap ratio of 0.418143.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Royal Caribbean Cruises Ltd. (RCL) for last month was 1.013449. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Royal Caribbean Cruises Ltd. (RCL) is 1.18112.

Many active investors will use technical analysis when conducting stock research. Technical analysis involves studying trends and trying to predict which trends will continue into the future. Many technical traders will rely on charts to help provide the information they desire. Some technicians will use one or two technical indicators while others will combine many different ones. There are plenty of indicators out there that can be studied. Figuring out which indicators are the most reliable can be a tricky endeavor. Traders may want to try out various combinations in order to identify the ones that seem to provide the best advantage, even if it is a small one.

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