ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RY - CA7800871021 - Common Stock
235.42 CAD
+0.08 (+0.03%)
RY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 24 industry peers in the Banks industry. While RY is still in line with the averages on profitability rating, there are concerns on its financial health. RY is valied quite expensively at the moment, while it does show a decent growth rate. Finally RY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- RY had positive earnings in the past year.
- RY had a positive operating cash flow in the past year.
- In the past 5 years RY has always been profitable.
- Each year in the past 5 years RY had a positive operating cash flow.
1.2 Ratios
- RY's Return On Assets of 0.85% is fine compared to the rest of the industry. RY outperforms 75.00% of its industry peers.
- The Return On Equity of RY (14.28%) is better than 79.17% 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
- Looking at the Profit Margin, with a value of 29.83%, RY belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
- RY's Profit Margin has improved in the last couple of years.
- RY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| 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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, RY has less shares outstanding
- Compared to 5 years ago, RY has less shares outstanding
- RY has a better debt/assets ratio than last year.
2.2 Solvency
- RY has a debt to FCF ratio of 6.67. This is a slightly negative value and a sign of low solvency as RY would need 6.67 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 6.67, RY belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- A Debt/Equity ratio of 2.53 is on the high side and indicates that RY has dependencies on debt financing.
- RY 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
WACC12.79%
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.
- RY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.61% yearly.
- The Revenue has grown by 16.15% in the past year. This is quite good.
- Measured over the past years, RY shows a small growth in Revenue. The Revenue has been growing by 7.14% on average per year.
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
- The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
- Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 16.31, the valuation of RY can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of RY indicates a rather expensive valuation: RY more expensive than 91.67% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of RY to the average of the S&P500 Index (27.47), we can say RY is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 14.62, RY is valued correctly.
- RY's Price/Forward Earnings ratio is rather expensive when compared to the industry. RY is more expensive than 95.83% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. RY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, RY is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.41
PEG (5Y)1.29
EPS Next 2Y11%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.79%, RY has a reasonable but not impressive dividend return.
- RY's Dividend Yield is rather good when compared to the industry average which is at 3.49. RY pays more dividend than 83.33% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.87, RY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
- The dividend of RY is nicely growing with an annual growth rate of 7.08%!
- RY has been paying a dividend for at least 10 years, so it has a reliable track record.
- RY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.08%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
- 44.29% of the earnings are spent on dividend by RY. This is a bit on the high side, but may be sustainable.
- The dividend of RY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.29%
EPS Next 2Y11%
EPS Next 3Y10.3%
TSX:RY (1/16/2026, 7:00:00 PM)
235.42
+0.08 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)12-03 2025-12-03/bmo
Earnings (Next)02-25 2026-02-25
Inst Owners49.22%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap329.61B
Revenue(TTM)66.61B
Net Income(TTM)19.87B
Analysts82.5
Price Target241.3 (2.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend6.25
Dividend Growth(5Y)7.08%
DP44.29%
Div Incr Years8
Div Non Decr Years8
Ex-Date01-26 2026-01-26 (1.64)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.02%
Max EPS beat(2)12.29%
EPS beat(4)3
Avg EPS beat(4)5.29%
Min EPS beat(4)-4.92%
Max EPS beat(4)12.29%
EPS beat(8)5
Avg EPS beat(8)3.59%
EPS beat(12)8
Avg EPS beat(12)2.35%
EPS beat(16)11
Avg EPS beat(16)2.06%
Revenue beat(2)2
Avg Revenue beat(2)1.6%
Min Revenue beat(2)0.34%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)4.2%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.53%
PT rev (1m)1.26%
PT rev (3m)11.45%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)2.47%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 14.62 | ||
| P/S | 4.95 | ||
| P/FCF | 6.22 | ||
| P/OCF | 5.97 | ||
| P/B | 2.37 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)14.43
EY6.13%
EPS(NY)16.1
Fwd EY6.84%
FCF(TTM)37.84
FCFY16.07%
OCF(TTM)39.44
OCFY16.75%
SpS47.57
BVpS99.34
TBVpS80.2
PEG (NY)1.41
PEG (5Y)1.29
Graham Number179.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 14.28% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.83% | ||
| GM | N/A | ||
| FCFM | 79.54% |
ROA(3y)0.77%
ROA(5y)0.81%
ROE(3y)13.1%
ROE(5y)13.93%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score9
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 72.85% | ||
| Cap/Sales | 3.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 266.65% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC12.79%
ROIC/WACCN/A
Cap/Depr(3y)81.48%
Cap/Depr(5y)84.61%
Cap/Sales(3y)4.22%
Cap/Sales(5y)4.43%
Profit Quality(3y)186.75%
Profit Quality(5y)211.66%
High Growth Momentum
Growth
EPS 1Y (TTM)19.26%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%25.41%
EPS Next Y11.61%
EPS Next 2Y11%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue 1Y (TTM)16.15%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%14.16%
Revenue Next Year6.48%
Revenue Next 2Y5.73%
Revenue Next 3Y4.7%
Revenue Next 5Y3.82%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-13.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y153.98%
FCF growth 3Y39.67%
FCF growth 5Y-17.21%
OCF growth 1Y138.65%
OCF growth 3Y36.02%
OCF growth 5Y-16.84%
ROYAL BANK OF CANADA / RY.CA FAQ
What is the ChartMill fundamental rating of ROYAL BANK OF CANADA (RY.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RY.CA.
Can you provide the valuation status for ROYAL BANK OF CANADA?
ChartMill assigns a valuation rating of 3 / 10 to ROYAL BANK OF CANADA (RY.CA). This can be considered as Overvalued.
How profitable is ROYAL BANK OF CANADA (RY.CA) stock?
ROYAL BANK OF CANADA (RY.CA) has a profitability rating of 4 / 10.
What is the financial health of ROYAL BANK OF CANADA (RY.CA) stock?
The financial health rating of ROYAL BANK OF CANADA (RY.CA) is 3 / 10.
How sustainable is the dividend of ROYAL BANK OF CANADA (RY.CA) stock?
The dividend rating of ROYAL BANK OF CANADA (RY.CA) is 8 / 10 and the dividend payout ratio is 44.29%.