Royal Caribbean GroupRCL -2.88%84 3-Year ROIIC % is 48.78 as of Dec. 2025, which is 216% above its 10-year median of 15.44. GuruFocus rates RCL with a GF Score™ of 84/100 and a GF Value™ of $248.13 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 793 Travel & Leisure companies, Royal Caribbean Group ranks better than 82.35% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Royal Caribbean Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 48.78%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Royal Caribbean Group's 3-Year ROIIC % or its related term are showing as below:
RCL's 3-Year ROIIC % is ranked better than 82.35% of 793
companies
in the Travel & Leisure industry
Industry Median: 4.37
vs RCL: 48.78
Royal Caribbean Group (NYSE:RCL) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Royal Caribbean Group 3-Year ROIIC % Related Terms
Royal Caribbean Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Royal Caribbean Group's 3-Year ROIIC % 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.
For the Travel Services subindustry, Royal Caribbean Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Royal Caribbean Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Royal Caribbean Group's 3-Year ROIIC % falls into.
Royal Caribbean Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 4817.692 (Dec. 2025) - -766 (Dec. 2022) )
/
( 48484 (Dec. 2025) - 37038 (Dec. 2022) )
=
5583.692
/
11446
=
48.78%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Royal Caribbean Group (RCL) has a 3-Year ROIIC % of 48.78 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Royal Caribbean Group and its competitors. This is 216% above median its historical median of 15.44. According to the industry distribution chart, Royal Caribbean Group ranks #140 out of 793 companies in the Travel & Leisure industry, placing it in the top 17.7%.
Is Royal Caribbean Group's 3-Year ROIIC % too high?
Royal Caribbean Group's current 3-Year ROIIC % of 48.78 is 216% above median its 10-year median of 15.44. The Travel & Leisure industry median 3-Year ROIIC % is 4.37. Royal Caribbean Group's value of 48.78 is 1016.2% above this industry median. Based on the distribution chart, Royal Caribbean Group ranks #140 out of 793 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 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Caribbean Group's 3-Year ROIIC % compare to ABNB and VIK?
According to the Travel & Leisure industry distribution chart, Royal Caribbean Group ranks #140 out of 793 companies for 3-Year ROIIC %. This places Royal Caribbean Group in the top 18% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.37. Royal Caribbean Group's value of 48.78 is 1016.2% above this benchmark. While the company's 10-year median is 15.44 vs. the industry median of 4.37, 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 3-Year ROIIC % for a Travel & Leisure company?
The median 3-Year ROIIC % among Travel & Leisure companies is 4.37, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Caribbean Group's current 3-Year ROIIC % of 48.78 is 1016.2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Royal Caribbean Group and its competitors. For the Travel & Leisure industry, the median 3-Year ROIIC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Caribbean Group's current 3-Year ROIIC % is 48.78, which is 216% above median its own 10-year median of 15.44. 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 (RCL) is currently considered Modestly Overvalued. The stock's GF Value™ is $248.13, compared to a current price of $287.78 — trading 16% above its estimated fair value. The current 3-Year ROIIC % is 48.78, which is 216% above median its 10-year median of 15.44 and 1016.2% above the Travel & Leisure industry median of 4.37. Royal Caribbean Group's overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Royal Caribbean Group (RCL), the current 3-Year ROIIC % is 48.78 as of Dec. 2025. 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 (RCL) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Caribbean Group stock appears to be overvalued.
The current stock price of $287.78 is trading 16% above its estimated GF Value™ of $248.13.
GuruFocus considers Royal Caribbean Group to be Modestly Overvalued.
Key valuation signals for RCL:
3-Year ROIIC %: 48.78 (216% above median its 10-year median of 15.44)
GF Value™: $248.13 vs. price of $287.78 (16% above fair value)
Industry Position: 1016.2% above the Travel & Leisure median (#140 of 793)
No single metric tells the full story. See the 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.
84GF Score
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