Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cruise operator Royal Caribbean Cruises (NYSE:RCL) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Royal Caribbean's business, and see what CAPS investors are saying about the stock right now.

Royal Caribbean facts

Headquarters (founded)

Miami (1968)

Market Cap

$1.36 billion


Hotels, Resorts, and Cruise Lines

TTM Revenue

$6.53 billion


Chairman/CEO: Richard Fain (since 1988)

CFO: Brian Rice (since 2006)

Return on Equity (average, last five years and TTM)

10.4% and 8.5%


Carnival (NYSE:CCL)

Walt Disney (NYSE:DIS)

CAPS members bearish on RCL also bearish on:

General Motors (NYSE:GM)

Lennar (NYSE:LEN)

CAPS members bullish on RCL also bullish on:


Bank of America (NYSE:BAC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 30 of the 106 All-Star members who have rated Royal Caribbean believe the stock will underperform the S&P 500 going forward. Among the entire bear population are Mary953, who is ranked in the top 1% of our community, and trkerjim.

Two weeks ago, Mary953 expressed fears for the short term:

Tis the season to be thrifty. This cyclical stock is drifting south. But the ships are nice enough that it won't stay down for long. Down turn now, but book my cabin for later this spring!

In a pitch from a few days earlier, trkerjim shares Mary953’s hopeful long-term view, but also recognizes the very real near-term risks:

[L]arge debt from new ship orders will hurt the bottom line and the discounting of cruise prices to fill the ship will further dilute the stock price. depending on the economic recovery of the world I think this could turn around in about 2 years due to newer ships and excellent service from the staff as a whole. they have a good training program for the help staff and while the cutbacks to someone that cruises a lot are starting to show I think they have good financial advisors working to keep you as happy as can be under these economic conditions

What do you think about Royal Caribbean, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Walt Disney is a Motley Fool Inside Value and Stock Advisor selection. Apple is also a choice of Stock Advisor. The Fool's disclosure policy always gets a perfect score.