ROYAL BANK OF CANADA - RY 5.885 PERP (RY-PR-S.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RY-PR-S - CA78013R3909
26.85 CAD
-0.03 (-0.11%)
RY-PR-S gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Banks industry. RY-PR-S has a medium profitability rating, but doesn't score so well on its financial health evaluation. RY-PR-S may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- RY-PR-S had positive earnings in the past year.
- RY-PR-S had a positive operating cash flow in the past year.
- In the past 5 years RY-PR-S has always been profitable.
- Each year in the past 5 years RY-PR-S had a positive operating cash flow.
1.2 Ratios
- RY-PR-S's Return On Assets of 0.85% is fine compared to the rest of the industry. RY-PR-S outperforms 79.17% of its industry peers.
- The Return On Equity of RY-PR-S (14.28%) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 14.28% | ||
| ROIC | N/A |
ROA(3y)0.77%
ROA(5y)0.81%
ROE(3y)13.1%
ROE(5y)13.93%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- RY-PR-S has a Profit Margin of 29.83%. This is amongst the best in the industry. RY-PR-S outperforms 100.00% of its industry peers.
- RY-PR-S's Profit Margin has improved in the last couple of years.
- The Operating Margin and Gross Margin are not available for RY-PR-S so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 29.83% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-2.05%
PM growth 5Y4.74%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- RY-PR-S does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for RY-PR-S has been reduced compared to 1 year ago.
- RY-PR-S has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for RY-PR-S has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of RY-PR-S is 6.67, which is on the high side as it means it would take RY-PR-S, 6.67 years of fcf income to pay off all of its debts.
- RY-PR-S's Debt to FCF ratio of 6.67 is amongst the best of the industry. RY-PR-S outperforms 95.83% of its industry peers.
- RY-PR-S has a Debt/Equity ratio of 2.53. This is a high value indicating a heavy dependency on external financing.
- RY-PR-S has a Debt to Equity ratio (2.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.81%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.26% over the past year.
- The Earnings Per Share has been growing by 12.61% on average over the past years. This is quite good.
- RY-PR-S shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.15%.
- RY-PR-S shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.14% yearly.
EPS 1Y (TTM)19.26%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%25.41%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%14.16%
3.2 Future
- Based on estimates for the next years, RY-PR-S will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.30% on average per year.
- RY-PR-S is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
EPS Next Y11.61%
EPS Next 2Y11%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue Next Year6.48%
Revenue Next 2Y5.73%
Revenue Next 3Y4.7%
Revenue Next 5Y3.82%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 1.86, the valuation of RY-PR-S can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of RY-PR-S indicates a rather cheap valuation: RY-PR-S is cheaper than 100.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of RY-PR-S to the average of the S&P500 Index (27.21), we can say RY-PR-S is valued rather cheaply.
- The Price/Forward Earnings ratio is 1.67, which indicates a rather cheap valuation of RY-PR-S.
- Based on the Price/Forward Earnings ratio, RY-PR-S is valued cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. RY-PR-S is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.86 | ||
| Fwd PE | 1.67 |
4.2 Price Multiples
- RY-PR-S's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RY-PR-S is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.16
PEG (5Y)0.15
EPS Next 2Y11%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.82%, RY-PR-S has a reasonable but not impressive dividend return.
- RY-PR-S's Dividend Yield is slightly below the industry average, which is at 3.05.
- RY-PR-S's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
- The dividend of RY-PR-S is nicely growing with an annual growth rate of 7.08%!
- RY-PR-S has been paying a dividend for over 5 years, so it has already some track record.
- RY-PR-S has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.08%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- 44.29% of the earnings are spent on dividend by RY-PR-S. This is a bit on the high side, but may be sustainable.
- The dividend of RY-PR-S is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.29%
EPS Next 2Y11%
EPS Next 3Y10.3%
ROYAL BANK OF CANADA - RY 5.885 PERP / RY-PR-S.CA FAQ
What is the ChartMill fundamental rating of ROYAL BANK OF CANADA - RY 5.885 PERP (RY-PR-S.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RY-PR-S.CA.
What is the valuation status of ROYAL BANK OF CANADA - RY 5.885 PERP (RY-PR-S.CA) stock?
ChartMill assigns a valuation rating of 8 / 10 to ROYAL BANK OF CANADA - RY 5.885 PERP (RY-PR-S.CA). This can be considered as Undervalued.
Can you provide the profitability details for ROYAL BANK OF CANADA - RY 5.885 PERP?
ROYAL BANK OF CANADA - RY 5.885 PERP (RY-PR-S.CA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for RY-PR-S stock?
The Price/Earnings (PE) ratio for ROYAL BANK OF CANADA - RY 5.885 PERP (RY-PR-S.CA) is 1.86 and the Price/Book (PB) ratio is 0.27.
What is the earnings growth outlook for ROYAL BANK OF CANADA - RY 5.885 PERP?
The Earnings per Share (EPS) of ROYAL BANK OF CANADA - RY 5.885 PERP (RY-PR-S.CA) is expected to grow by 11.61% in the next year.