Royal Caribbean GroupSTU:RC8 +0.28%81 Operating Margin % is 26.10% as of Mar. 2026, which is 34% above its 10-year median of 19.45. GuruFocus rates STU:RC8 with a GF Score™ of 81/100 and a GF Value™ of €216.77 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 844 Travel & Leisure companies, Royal Caribbean Group ranks better than 91.23% on this metric.
Royal Caribbean Group (STU:RC8) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Royal Caribbean Group Operating Margin % Related Terms
Royal Caribbean Group Operating Margin % Historical Data
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The historical data trend for Royal Caribbean Group's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:RC8 vs ABNB, VIK, CCL: Operating Margin % Comparison
For the Travel Services subindustry, Royal Caribbean Group's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Royal Caribbean Group Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Royal Caribbean Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Royal Caribbean Group's Operating Margin % falls into.
Royal Caribbean Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Royal Caribbean Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Royal Caribbean Group (STU:RC8) has a Operating Margin % of 26.10% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Royal Caribbean Group and its competitors. This is 34% above median its historical median of 19.45. According to the industry distribution chart, Royal Caribbean Group ranks #74 out of 844 companies in the Travel & Leisure industry, placing it in the top 8.8%.
Is Royal Caribbean Group's Operating Margin % too high?
Royal Caribbean Group's current Operating Margin % of 26.10% is 34% above median its 10-year median of 19.45. The Travel & Leisure industry median Operating Margin % is 8.14. Royal Caribbean Group's value of 26.10% is 220.8% above this industry median. Based on the distribution chart, Royal Caribbean Group ranks #74 out of 844 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Royal Caribbean Group has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Caribbean Group's Operating Margin % compare to ABNB and VIK?
According to the Travel & Leisure industry distribution chart, Royal Caribbean Group ranks #74 out of 844 companies for Operating Margin %. This places Royal Caribbean Group in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.14. Royal Caribbean Group's value of 26.10% is 220.8% above this benchmark. While the company's 10-year median is 19.45 vs. the industry median of 8.14, Royal Caribbean Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Caribbean Group's current Operating Margin % of 26.10% is 220.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Royal Caribbean Group and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Caribbean Group's current Operating Margin % is 26.10%, which is 34% above median its own 10-year median of 19.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Caribbean Group stock overvalued right now?
Based on GuruFocus' analysis, Royal Caribbean Group (STU:RC8) is currently considered Significantly Overvalued. The stock's GF Value™ is €216.77, compared to a current price of €282.90 — trading 30.5% above its estimated fair value. The current Operating Margin % is 26.10%, which is 34% above median its 10-year median of 19.45 and 220.8% above the Travel & Leisure industry median of 8.14. Royal Caribbean Group's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Royal Caribbean Group (STU:RC8), the current Operating Margin % is 26.10% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Royal Caribbean Group (STU:RC8) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Caribbean Group stock appears to be overvalued.
The current stock price of €282.90 is trading 30.5% above its estimated GF Value™ of €216.77.
GuruFocus considers Royal Caribbean Group to be Significantly Overvalued.
Key valuation signals for STU:RC8:
Operating Margin %: 26.10% (34% above median its 10-year median of 19.45)
GF Value™: €216.77 vs. price of €282.90 (30.5% above fair value)
Industry Position: 220.8% above the Travel & Leisure median (#74 of 844)
No single metric tells the full story. See the STU:RC8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Caribbean is the world's second-largest cruise company by revenues, operating 69 ships across five global and partner brands in the cruise vacation industry. Brands the company operates include Royal Caribbean International, Celebrity Cruises, and Silversea. The company also has a 50% investment in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. The selection of brands in the portfolio allows Royal to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. The company completed the divestiture of its Azamara brand in 2021, plans to launch its new Celebrity River Cruise brand in 2027, and is set to operate eight private destination locations by 2028.
81GF Score
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