Carnival Corporation & plc
Carnival Corporation & plc Fundamental Analysis
Carnival Corporation & plc (CUK) shows strong financial fundamentals with a PE ratio of 15.21, profit margin of 10.37%, and ROE of 25.45%. The company generates $26.6B in annual revenue with strong year-over-year growth of 15.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CUK's fundamental strength across five key dimensions:
Efficiency Score
WeakCUK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCUK trades at attractive valuation levels.
Growth Score
ExcellentCUK delivers strong and consistent growth momentum.
Financial Health Score
WeakCUK carries high financial risk with limited liquidity.
Profitability Score
ModerateCUK maintains healthy but balanced margins.
Key Financial Metrics
Is CUK Expensive or Cheap?
P/E Ratio
CUK trades at 15.21 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CUK's PEG of 1.98 indicates fair valuation.
Price to Book
The market values Carnival Corporation & plc at 3.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.64 times EBITDA. This is generally considered low.
How Well Does CUK Make Money?
Net Profit Margin
For every $100 in sales, Carnival Corporation & plc keeps $10.37 as profit after all expenses.
Operating Margin
Core operations generate 16.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.45 in profit for every $100 of shareholder equity.
ROA
Carnival Corporation & plc generates $5.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Carnival Corporation & plc produces operating cash flow of $6.22B, showing steady but balanced cash generation.
Free Cash Flow
Carnival Corporation & plc produces free cash flow of $2.61B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.99 in free cash annually.
FCF Yield
CUK converts 5.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How CUK Stacks Against Its Sector Peers
| Metric | CUK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.21 | 25.25 | Better (Cheaper) |
| ROE | 25.45% | 1170.00% | Weak |
| Net Margin | 10.37% | 742.00% | Weak |
| Debt/Equity | 2.28 | 0.77 | Weak (High Leverage) |
| Current Ratio | 0.32 | 9.19 | Weak Liquidity |
| ROA | 5.34% | -6467.00% (disorted) | Weak |
CUK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Carnival Corporation & plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-34.93%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-65.29%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-41.41%
Industry Style: Cyclical, Growth, Discretionary
Declining