Royal Caribbean GroupMEX:RCL +1.15%73 Pretax Margin % is 21.92% as of Mar. 2026, which is 35% above its 10-year median of 16.27. GuruFocus rates MEX:RCL with a GF Score™ of 73/100 and a GF Value™ of MXN4,337.09 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 845 Travel & Leisure companies, Royal Caribbean Group ranks better than 86.75% on this metric.
The historical rank and industry rank for Royal Caribbean Group's Pretax Margin % or its related term are showing as below:
MEX:RCL'
s Pretax Margin % Range Over the Past 10 Years
Min: -343.34 Med: 16.27 Max: 25.11
Current: 25.11
MEX:RCL's Pretax Margin % is ranked better than 86.75% of 845
companies
in the Travel & Leisure industry
Industry Median: 6.11
vs MEX:RCL: 25.11
Royal Caribbean Group (MEX:RCL) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Royal Caribbean Group Pretax Margin % Related Terms
Royal Caribbean Group Pretax Margin % Historical Data
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The historical data trend for Royal Caribbean Group's Pretax 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.
MEX:RCL vs ABNB, VIK, CCL: Pretax Margin % Comparison
For the Travel Services subindustry, Royal Caribbean Group's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Royal Caribbean Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Royal Caribbean Group's Pretax Margin % falls into.
* 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 (MEX:RCL) has a Pretax Margin % of 21.92% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Royal Caribbean Group and its competitors. This is 35% above median its historical median of 16.27. According to the industry distribution chart, Royal Caribbean Group ranks #112 out of 845 companies in the Travel & Leisure industry, placing it in the top 13.3%.
Is Royal Caribbean Group's Pretax Margin % too high?
Royal Caribbean Group's current Pretax Margin % of 21.92% is 35% above median its 10-year median of 16.27. The Travel & Leisure industry median Pretax Margin % is 6.11. Royal Caribbean Group's value of 21.92% is 258.8% above this industry median. Based on the distribution chart, Royal Caribbean Group ranks #112 out of 845 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 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Caribbean Group's Pretax Margin % compare to ABNB and VIK?
According to the Travel & Leisure industry distribution chart, Royal Caribbean Group ranks #112 out of 845 companies for Pretax Margin %. This places Royal Caribbean Group in the top 13% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 6.11. Royal Caribbean Group's value of 21.92% is 258.8% above this benchmark. While the company's 10-year median is 16.27 vs. the industry median of 6.11, 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 Pretax Margin % for a Travel & Leisure company?
The median Pretax Margin % among Travel & Leisure companies is 6.11, based on 845 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Caribbean Group's current Pretax Margin % of 21.92% is 258.8% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Royal Caribbean Group and its competitors. For the Travel & Leisure industry, the median Pretax Margin % is 6.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Caribbean Group's current Pretax Margin % is 21.92%, which is 35% above median its own 10-year median of 16.27. 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 (MEX:RCL) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN4,337.09, compared to a current price of MXN5,430.00 — trading 25.2% above its estimated fair value. The current Pretax Margin % is 21.92%, which is 35% above median its 10-year median of 16.27 and 258.8% above the Travel & Leisure industry median of 6.11. Royal Caribbean Group's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Royal Caribbean Group (MEX:RCL), the current Pretax Margin % is 21.92% 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 (MEX:RCL) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Caribbean Group stock appears to be overvalued.
The current stock price of MXN5,430.00 is trading 25.2% above its estimated GF Value™ of MXN4,337.09.
GuruFocus considers Royal Caribbean Group to be Modestly Overvalued.
Key valuation signals for MEX:RCL:
Pretax Margin %: 21.92% (35% above median its 10-year median of 16.27)
GF Value™: MXN4,337.09 vs. price of MXN5,430.00 (25.2% above fair value)
Industry Position: 258.8% above the Travel & Leisure median (#112 of 845)
No single metric tells the full story. See the MEX:RCL 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.
73GF Score
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