CCL stock vs. RCCL stock

[Fla Senior]

I haven't been on here in a very long time.  So, if this subject has been widely discussed, please don't flame me.  As a long time CCL stockholder, I'm amazed at how the stock is still so low.  RCCL stock has boomed.  Both have record bookings, are building new ships and have lots of debt.  Can any seasoned investors give me a summary lowdown?  Thanks!

[VentureMan_2000]

 

CCL has first-quarter revenue of $4.4 billion (95% of 2019 levels) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $382 million.  However, it has $32.7 billion in long-term debt.
 

The positive adjusted EBITDA looks great on paper, but it doesn't even defray the $539 million paid out in interest expense that quarter and other outflows like debt principle pay-down or capital expenditures -- expected to total a whopping $3.2 billion in 2023 before jumping $4.1 billion in 2024. 

 

Edited May 15, 2023 by VentureMan_2000

[geovet]

For a non financial person, how does this compare to rcl?

 

thanks

 

 

 

 

[Itried4498]

Unfortunately, Cruise Critic isn't the appropriate place to have this discussions.  I'd bet that most all CCL shareholders on here only acquired the stock when it became cheap and only for the purpose of getting OBC...

[john91498]

36 minutes ago, geovet said:

For a non financial person, how does this compare to rcl?

 

thanks

 

 

 

 

 

Royal has a nicer balance sheet then Carnival

Edited May 15, 2023 by john91498

[Eli_6]

I have no clue on their balance sheets.  Just purchased for the OBC.  But I paid like $25-30 for my RCL and now it is worth about $65-70.  I think Carnival is still worth about what I paid for it, although it has nearly paid for itself in OBC already.

 

I think there are better investment opportunities out there than cruise ship stock if that is why you are buying it.  

 

 

 

[ninjacat123]

I bought my CCL stock for the OBC and I have received $550 in OBC since the restart.  I bought it for that and because Carnival is one of my favorite products.  @Eli_6 is correct that there are better investment opportunities out there.  Do what works for you.

[Fla Senior]

I also bought CCL for the OBC and have benefitted greatly.  My point is that both companies are basically the same financially, yet CCL is at $10 and RCCL is at $75.  CCL bottomed at about 8 and RCCL bottomed at about 15.  It's really strange.

[Lee Cruiser]

39 minutes ago, Fla Senior said:

I also bought CCL for the OBC and have benefitted greatly.  My point is that both companies are basically the same financially, yet CCL is at $10 and RCCL is at $75.  CCL bottomed at about 8 and RCCL bottomed at about 15.  It's really strange.

Carnival's debt load is a major, major factor.  However,  another contributing factor is that Carnival issued millions of new shares of stock, greatly diluting the value per share.  Carnival has 1.26 billion shares of stock outstanding, which is over a billion more shares than RCL at around 256 million.

[Colorado Beach Bum]

1 hour ago, Fla Senior said:

I also bought CCL for the OBC and have benefitted greatly.  My point is that both companies are basically the same financially, yet CCL is at $10 and RCCL is at $75.  CCL bottomed at about 8 and RCCL bottomed at about 15.  It's really strange.

Share price comparison is not apples to apples.  It’s totally dependent on number of shares outstanding.  Even though share price of RCL is 7+ times that of CCL, total valuation is less than 50% more than CCL. 

[mexicobob]

I bought cruise ship stock for the OBC, and have enjoyed it.