Carnival Corp (NYSE: CCL)

Sector: Consumer Cyclical Industry: Travel Services CIK: 0000815097
Market Cap 42.95 Bn
P/B 3.50
P/E 15.56
P/S 1.61
ROIC (Qtr) 11.70
Div Yield % 0.00
Rev 1y % (Qtr) 6.60
Total Debt (Qtr) 27.99 Bn
Debt/Equity (Qtr) 2.28
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About

Carnival Corporation (CCL), a renowned name in the cruise industry, operates as a dual-listed company with its headquarters in Panama and England and Wales. With a rich history dating back to 1974, CCL has established itself as the largest global cruise company, offering a diverse range of cruise line brands that cater to various customer segments. CCL's main business activities involve providing cruise vacations, offering a wide range of products and services such as accommodations, dining, entertainment, and shore excursions. The company generates...

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Investment thesis

Bull case

  • Operating cash flow of 6.22B provides strong 63.45x coverage of stock compensation 98M, indicating sustainable incentive practices.
  • Strong operating cash flow of 6.22B provides 1.83x coverage of SG&A expenses 3.40B, showing efficient operational cost management.
  • Tangible assets of 49.93B provide robust 5.51x coverage of other current liabilities 9.07B, indicating strong asset backing.
  • Operating cash flow of 6.22B fully covers other non-current liabilities 1.10B by 5.67x, showing strong long-term stability.
  • Operating cash flow of 6.22B provides strong 12.31x coverage of inventory 505M, indicating efficient inventory management.

Bear case

  • Operating cash flow of 6.22B barely covers its investment activities of (3.32B), with a coverage ratio of -1.87, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of 4.12B show weak coverage of depreciation charges of 2.95B, with a 1.40 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 2.93B represents just -1.33x of debt issuance (2.20B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 2.95B relative to operating cash flow of 6.22B, which is 0.47x suggests significant maintenance capital requirements affecting free cash flow.
  • Retained earnings of 4.82B provide limited buffer against comprehensive income items of (1.81B), which is -2.66x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Travel Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BKNG Booking Holdings Inc. 176.65 Bn 51.94 12.17 17.53 Bn
2 RCL Royal Caribbean Cruises Ltd 87.73 Bn 20.55 4.89 22.04 Bn
3 ABNB Airbnb, Inc. 76.08 Bn 30.30 6.22 2.00 Bn
4 CCL Carnival Corp 42.95 Bn 15.56 1.61 27.99 Bn
5 TCOM Trip.com Group Ltd 36.86 Bn 8.42 4.39 4.49 Bn
6 VIK Viking Holdings Ltd 34.07 Bn 35.81 5.56 5.65 Bn
7 EXPE Expedia Group, Inc. 25.13 Bn 19.42 1.71 6.42 Bn
8 NCLH Norwegian Cruise Line Holdings Ltd. 10.73 Bn 16.17 1.11 14.52 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.34 1.63
EV to Cash from Ops. EV/CFO 11.10 25.22
EV to Debt EV to Debt 2.47 0.32
EV to EBIT EV/EBIT 16.76 8.12
EV to EBITDA EV/EBITDA 9.29 8.69
EV to Free Cash Flow [EV/FCF] EV/FCF 23.57 16.59
EV to Market Cap EV to Market Cap 1.61 0.91
EV to Revenue EV/Rev 2.59 3.15
Price to Book Value [P/B] P/B 3.50 -22.19
Price to Earnings [P/E] P/E 15.56 47.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -2.21
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 29.35
Dividend per Basic Share Div per Share (Qtr) 0.00 2.51
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.02
Interest Coverage Int. cover (Qtr) 3.05 2.13
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 28.02 -26.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 59.34 879.96
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 17.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 11.74 221.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.51 -4.91
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.29 195.76
EBT Growth (1y) % EBT 1y % (Qtr) 44.75 69.12
EPS Growth (1y) % EPS 1y % (Qtr) 40.00 153.49
FCF Growth (1y) % FCF 1y % (Qtr) 116.24 40.03
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.77 101.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.39
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.15 0.43
Current Ratio Curr Ratio (Qtr) 0.32 1.11
Debt to Equity Ratio Debt/Equity (Qtr) 2.28 -5.94
Interest Cover Ratio Int Coverage (Qtr) 3.05 2.13
Times Interest Earned Times Interest Earned (Qtr) 3.05 2.13
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.60 -25.59
EBIT Margin % EBIT Margin % (Qtr) 15.48 -3.90
EBT Margin % EBT Margin % (Qtr) 10.41 -33.52
Gross Margin % Gross Margin % (Qtr) 40.10 52.98
Net Profit Margin % Net Margin % (Qtr) 10.40 -35.95