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To: Wallace Rivers who wrote (62164)	6/22/2019 4:08:11 PM
From: Spekulatius	Respond to of 78753

re CCL, NCLH. I looked at the operating metrics of this group and it looks like they generate about 10% ROIC. CCL for example has $45B in assets and generates $34B in operating profit, NCLH has $12B and generates ~ $1.2B. With a 10% ROIC, they can’t grow in the high single digits organically and pay a smallish 2% dividend, which is OK, but not great. The relatively low ROIC sort of explains the lower multiple that these companies are fetching. Typical industrials for example generate mid teens of ROIC or better and hence afford higher multiples.

To: Wallace Rivers who wrote (62164)	6/23/2019 10:24:56 AM
From: Paul Senior	Respond to of 78753

Yes, RCL has dividend. My error - should have checked before posting. Apologies.