Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cruise operator Carnival
With that in mind, let's take a closer look at Carnival's business and see what CAPS investors are saying about the stock right now.
Carnival facts
| Headquarters (founded) | Miami (1974) |
| Market Cap | $25.7 billion |
| Industry | Hotels, resorts, and cruise lines |
| Trailing-12-Month Revenue | $16.0 billion |
| Management | Chairman/CEO Micky Arison (since 2003) CFO David Bernstein (since 1998) |
| Return on Equity (average, past 3 years) | 8% |
| Cash/Debt | $471.0 million / $9.5 billion |
| Dividend Yield | 3% |
| Competitors |
Genting Hong Kong Royal Caribbean Cruises TUI AG |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 25% of the 500 members who have rated Carnival believe the stock will underperform the S&P 500 going forward.
A couple of months ago, one of those bears, All-Star TerryHogan, touched on the stock's seemingly unsustainable valuation:
They have hedged fuel somewhat, but still have exposure to rising fuel costs. They currently trade at 18x the high end of their own guidance for 2012. I think that multiple is a bit high for their growth rate. If earnings came in below the low end of their range, that means their trading at over 20 x forward earnings. Probably won't nosedive because of the yield, but definitely not an outperformer. Over 5 years though it's probably a good business with boomer demographics.
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