Last Updated: 13 Sep 2024
Executive Summary
Carnival Corporation (CCL), the world's largest cruise operator, has faced challenges due to the pandemic but is showing signs of recovery. With a market capitalization of $21.15 billion, CCL trades at a trailing P/E of 22.66 and a forward P/E of 10.34. Analysts are generally bullish, with 8 strong buy ratings, 11 buy ratings, and only 3 sell ratings.
Company Overview
CCL operates over 100 vessels across 10 cruise line brands, including Carnival Cruise Line, Princess Cruises, and Holland America Line. The company's core business is providing cruises to vacationers worldwide.
Fundamental Analysis
Revenue: CCL's revenue has been impacted by the pandemic but is expected to recover in the coming years. Revenue for the latest quarter was $23.44 billion, representing a 17.7% increase year-over-year.
Earnings: CCL reported a diluted EPS of $0.73 for the latest quarter, a decrease of 13.9% year-over-year. The company's profit margin is 3.85%.
Cash Flow: CCL generated $5.27 billion in EBITDA for the latest quarter, an increase of 5.7% year-over-year. The company's operating margin is 9.7%.
Debt: CCL has a significant amount of debt, with a debt-to-equity ratio of 1.43. The company's interest expense is a significant expense, accounting for 10.3% of revenue.
Technical Analysis
Support and Resistance: CCL's stock price has been trading within a range of $10.84 to $19.74 over the past 52 weeks. The current price of $16.92 is near the middle of this range.
Moving Averages: CCL's 50-day moving average is $16.57, and its 200-day moving average is $16.23. The stock price is currently above both moving averages.
Momentum Indicators: CCL's relative strength index (RSI) is 52.35, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, CCL's stock price is likely to continue trading within its current range. The company's recovery from the pandemic is ongoing, and investors will be watching for signs of continued progress.
Long Term Outlook
In the long term, CCL's prospects are positive. The cruise industry is expected to grow in the coming years, and CCL is well-positioned to benefit from this growth. The company's strong brand portfolio and global reach give it a competitive advantage.
Analyst Recommendations
Analysts are generally bullish on CCL, with 8 strong buy ratings, 11 buy ratings, and only 3 sell ratings. The average analyst target price is $22.01, representing a potential upside of 30.1% from the current price.
