1 Cruise Ship Stock That's Still in Choppy Waters

The post-pandemic era has seen an increase in bookings for cruise ships. The company missed estimates in its most recent quarter. It has lost more than $60 million in the last four years. It might be best to avoid CCL at the moment. Continue reading...

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In addition to the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia, and internationally, Carnival Corporation and its subsidiaries operate.

Josh Weinstein, CCL's CEO, said on September 30, 2022, "since announcing the relaxation of our protocols last month, we have seen a meaningful improvement in booking volumes." The company's revenue in the third quarter came in at $4.30 billion, an increase of almost 700% over the same period a year ago.

IBES data from Refinitiv shows that it missed analysts' average estimate. CCL has lost more than 20% over the past month. It has lost more than half a million dollars over the course of the year.

CCL is trading below its 50-day and 200-day moving averages. The stock has lost 70% of its value since hitting its high.

CCL's performance could be affected by these things.

The balance sheet is weak.

CCL's cash and cash equivalents came in at $7.07 billion for the period that ended August 31, 2022.

Current assets came in at $8.43 billion, compared to $10.13 billion, while long-term debt came in at $28.52 billion, compared to $28.51 billion for the same period.

The profit margins are negative.

The gross profit margin of CCL is lower than the industry average. The trailing-12-month net income margin of 73.98% is lower than the industry average of 5.77%.

CCL's trailing-12-month ROCE, ROTC, and ROTA were negative, compared with the industry averages of negative 61.23%, 6.64%, and 13.70%.

POWR ratings reflect bad news.

CCL has an overall rating of D and a Sell in our POWR rating system. The POWR Ratings are calculated using 118 different factors.

CCL has a D grade for quality.

It has an F grade for stability, which is in line with its beta.

CCL is ranked second in the industry. The industry has a rating.

The additional POWR ratings for CCL can be found here.

Here you can see all the top stocks in the travel and cruises industry.

The bottom line.

CCL's revenue has fallen over the last three years. The company's earnings per share is expected to stay negative. Its balance sheet is filled with mounting debt and a decline in cash balance. I think it's a good idea to avoid CCL now.

CCL shares fell before the market opened. CCL has declined since the beginning of the year while the S&P 500 has risen.

Riddhima loves analyzing financial instruments. She helps investors make informed investment decisions with her insightful commentaries.

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