This company, which is a primarily cruise company earning revenue from passenger tickets (more than 70%) and onboard service, has been grouped into cruise line sector in packaged tour industry.
It seems that the demand for cruise line has been getting stronger since 2016 as indicated by increased ticket price (average 2-5% in 2017 and 2018) and capacity for most of companies in this sector. Spending on board has been seen growing as well during the same period (average 4% in 2017 and 2018.
It seems that the rising price and the saving on fuel costs has helped companies to improve their gross margin as revenue increased. We have seen the increased gross margins and EBI/sales ratio from those companies since 2015 by about 300 and 200 basis points respectively. The typical gross margin is about 32%, SG&A is about 16%, operating margin is about 19%, and EBI/sales is about 13% in 2018.
The typical enterprise price/EBI (adjusted with tax field) ratio is 27.
It seems that the demand for cruise line of this company has been getting stronger since 2016 as indicated by increased revenue of tickets resulted from the raising price of ticket and from increased capacity.
The first three months of fiscal 2018 compared with the same period of 2017 (ended Feb 28 2018)
Passenger tickets revenue (organic) increased about 2.6% due to higher price.
Onboard revenue (organic) increased about 3% due to higher spending per guest and increased capacity.
Fiscal 2017 compared with fiscal 2016
Passenger tickets revenue (organic) increased about 4.2% due to higher price.
Onboard revenue (organic) increased about 3.5% due to higher spending per guest.
Fiscal 2016 compared with fiscal 2015
Passenger tickets revenue (organic) increased about 1.3% due to increased price and slight increase in occupancy.
Onboard revenue (organic) increased about 2.3% due to higher spending and increase in occupancy.
Its gross margin (including direct operating costs and depreciation) fluctuated primarily as a result of fluctuated fuel price. With the flat SG&A as percentage of sales (about 13%), its operating margin was about 16% in 2018(gross margin is about 29%).
Stock performance
This company is having an enterprise price/EBI ratio of 29. We think that its stock was relatively slightly overvalued compared with company - ROYAL CARIBBEAN CRUISES LTD.
