Carnival (US:CCL) The Motley Foolยท2025-10-26 08:24Core Viewpoint - Despite the S&P 500 nearing all-time highs, there are still significant buying opportunities in the stock market, particularly for companies like Carnival that are trading well below their peak prices [1][2]. Company Overview - Carnival Corporation has seen a remarkable recovery post-COVID-19, consistently reporting record performance metrics each quarter [3][4]. - The current stock price is $29.40, with a market capitalization of $39 billion and a 52-week range of $15.07 to $32.80 [5]. Financial Performance - In the fiscal 2025 third quarter, Carnival reported a record revenue of $8.2 billion, reflecting a year-over-year growth of 3% [6]. - The company achieved an operating income of $2.3 billion, resulting in a 27.9% operating margin, which is also a record [8]. - Carnival's net yields, an indicator of pricing power, reached a record high, and customer deposits totaled $7.1 billion at the end of the quarter [6][9]. Market Demand and Trends - Demand for cruise travel is strong across various regions, including Europe and Alaska, not just the Caribbean [7]. - The cruise industry is attracting younger customers and first-time cruisers, expanding the total addressable market [12]. Debt Management and Valuation - Carnival has successfully refinanced some of its debt, ending the last quarter with $26.5 billion in total debt, which has led to upgrades in its credit ratings [9]. - The stock is currently trading at a forward price-to-earnings ratio of 12, making it an attractive investment opportunity despite being 60% below its all-time high [13][14].