Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Royal Caribbean Cruises Ltd., FCFE calculation
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The cash flow profile reveals a period of steady operational growth followed by severe volatility and a subsequent liquidity crisis between 2017 and 2021.
- Net Cash Provided by Operating Activities
- A positive growth trend was maintained from 2017 through 2019, with cash provided by operations increasing from US$ 2.87 billion to a peak of US$ 3.72 billion. This trend underwent a drastic reversal in 2020, shifting to a deficit of US$ 3.73 billion. While a reduction in the deficit occurred in 2021, operating activities remained cash-negative at US$ 1.88 billion.
- Free Cash Flow to Equity (FCFE)
- FCFE exhibited significant instability over the analyzed period. Following a sharp increase from US$ 291 million in 2017 to US$ 2.13 billion in 2018, the figure declined to US$ 734 million in 2019. A notable anomaly occurred in 2020, where FCFE rose to US$ 2.56 billion despite the collapse in operating cash flow. This was followed by a steep decline in 2021, resulting in a negative FCFE of US$ 2.69 billion.
- Relationship Between Operations and Equity Cash Flow
- A stark divergence is observed in 2020; the combination of negative operating cash flow and positive FCFE indicates that equity cash flow was sustained through substantial net borrowing or asset divestitures rather than operational performance. By 2021, the convergence of both operating cash flow and FCFE into negative territory indicates a transition from financing-supported liquidity to a period of overall cash depletion.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Price to FCFE Ratio, Current
Royal Caribbean Cruises Ltd., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 255,059,197 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | (2,688,360) |
| FCFE per share | -10.54 |
| Current share price (P) | 38.71 |
| Valuation Ratio | |
| P/FCFE | — |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Airbnb Inc. | 21.08 |
| Booking Holdings Inc. | 15.32 |
| Chipotle Mexican Grill Inc. | 28.29 |
| DoorDash, Inc. | 21.20 |
| McDonald’s Corp. | 23.07 |
| Starbucks Corp. | 36.79 |
| P/FCFE, Sector | |
| Consumer Services | 46.58 |
| P/FCFE, Industry | |
| Consumer Discretionary | 111.70 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Royal Caribbean Cruises Ltd., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 255,002,771 | 237,535,138 | 209,000,016 | 209,186,598 | 213,749,009 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | (2,688,360) | 2,558,738) | 734,104) | 2,129,217) | 290,717) | |
| FCFE per share3 | -10.54 | 10.77 | 3.51 | 10.18 | 1.36 | |
| Share price1, 4 | 73.67 | 93.27 | 89.55 | 120.93 | 130.55 | |
| Valuation Ratio | ||||||
| P/FCFE5 | — | 8.66 | 25.49 | 11.88 | 95.99 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Airbnb Inc. | 54.32 | — | — | — | — | |
| Booking Holdings Inc. | 69.02 | — | — | — | — | |
| Chipotle Mexican Grill Inc. | 51.88 | — | — | — | — | |
| DoorDash, Inc. | 292.52 | — | — | — | — | |
| McDonald’s Corp. | 30.21 | — | — | — | — | |
| Starbucks Corp. | 45.80 | 20.79 | — | — | — | |
| P/FCFE, Sector | ||||||
| Consumer Services | 45.10 | — | — | — | — | |
| P/FCFE, Industry | ||||||
| Consumer Discretionary | 83.41 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -2,688,360,000 ÷ 255,002,771 = -10.54
4 Closing price as at the filing date of Royal Caribbean Cruises Ltd. Annual Report.
5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 73.67 ÷ -10.54 = —
6 Click competitor name to see calculations.
An analysis of the financial period between 2017 and 2021 reveals a general depreciation in share price accompanied by extreme volatility in Free Cash Flow to Equity (FCFE) per share, resulting in an inconsistent Price to FCFE (P/FCFE) valuation ratio.
- Share Price Trajectory
- A sustained downward trend is observed in the share price, which declined from 130.55 US$ in 2017 to 73.67 US$ by the end of 2021. While a slight recovery occurred in 2020, the overall trajectory represents a significant reduction in market value over the five-year duration.
- FCFE per Share Volatility
- The FCFE per share exhibited substantial fluctuations, characterized by peaks and sharp declines. Following a value of 1.36 US$ in 2017, the metric rose to 10.18 US$ in 2018 and reached its highest point of 10.77 US$ in 2020. However, a severe reversal occurred in 2021, where the figure dropped to -10.54 US$, indicating a transition from cash generation to a significant net cash outflow.
- P/FCFE Ratio Interpretation
- The P/FCFE ratio demonstrated extreme variance, reflecting the instability of the underlying cash flows. The ratio was highest in 2017 at 95.99, suggesting a high valuation relative to the cash flow available to equity holders at that time. The ratio reached its lowest positive level in 2020 at 8.66. By 2021, the ratio is not applicable, as the negative FCFE per share renders the P/FCFE metric meaningless for valuation purposes.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?