ROYAL BANK OF CANADA (RY.CA) Fundamental Analysis & Valuation
TSX:RY • CA7800871021
Current stock price
239.56 CAD
-1.7 (-0.7%)
Last:
This RY.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RY.CA Profitability Analysis
1.1 Basic Checks
- In the past year RY was profitable.
- In the past year RY had a positive cash flow from operations.
- Each year in the past 5 years RY has been profitable.
- Each year in the past 5 years RY had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.88%, RY is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- RY's Return On Equity of 14.66% is fine compared to the rest of the industry. RY outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 14.66% | ||
| 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
- The Profit Margin of RY (30.22%) is better than 95.83% of its industry peers.
- RY's Profit Margin has improved in the last couple of years.
- The Operating Margin and Gross Margin are not available for RY so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 30.22% | ||
| 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. RY.CA Health Analysis
2.1 Basic Checks
- RY does not have a ROIC to compare to the WACC, probably because it is not profitable.
- RY has less shares outstanding than it did 1 year ago.
- RY has less shares outstanding than it did 5 years ago.
- RY has a better debt/assets ratio than last year.
2.2 Solvency
- RY has a debt to FCF ratio of 5.81. This is a neutral value as RY would need 5.81 years to pay back of all of its debts.
- The Debt to FCF ratio of RY (5.81) is better than 70.83% of its industry peers.
- A Debt/Equity ratio of 2.49 is on the high side and indicates that RY has dependencies on debt financing.
- RY has a Debt to Equity ratio of 2.49. This is comparable to the rest of the industry: RY outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.49 | ||
| Debt/FCF | 5.81 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.82%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. RY.CA Growth Analysis
3.1 Past
- RY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.70%, which is quite good.
- Measured over the past years, RY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.61% on average per year.
- The Revenue has grown by 11.93% in the past year. This is quite good.
- RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.14% yearly.
EPS 1Y (TTM)15.7%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%12.71%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%7.29%
3.2 Future
- RY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.38% yearly.
- Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y13.48%
EPS Next 2Y11.53%
EPS Next 3Y10.38%
EPS Next 5YN/A
Revenue Next Year7.75%
Revenue Next 2Y6.12%
Revenue Next 3Y4.96%
Revenue Next 5Y3.85%
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. RY.CA Valuation Analysis
4.1 Price/Earnings Ratio
- RY is valuated correctly with a Price/Earnings ratio of 16.09.
- 75.00% of the companies in the same industry are cheaper than RY, based on the Price/Earnings ratio.
- RY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.42.
- Based on the Price/Forward Earnings ratio of 13.35, the valuation of RY can be described as correct.
- RY's Price/Forward Earnings ratio is rather expensive when compared to the industry. RY is more expensive than 87.50% of the companies in the same industry.
- RY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
- 70.83% of the companies in the same industry are more expensive than RY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.6 | ||
| 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)1.19
PEG (5Y)1.28
EPS Next 2Y11.53%
EPS Next 3Y10.38%
5. RY.CA Dividend Analysis
5.1 Amount
- RY has a Yearly Dividend Yield of 2.72%.
- Compared to an average industry Dividend Yield of 3.10, RY has a dividend in line with its industry peers.
- RY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
- On average, the dividend of RY grows each year by 7.08%, which is quite nice.
- RY has been paying a dividend for at least 10 years, so it has a reliable track record.
- As RY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.08%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- RY pays out 43.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
- RY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.88%
EPS Next 2Y11.53%
EPS Next 3Y10.38%
RY.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:RY (4/23/2026, 7:00:00 PM)
239.56
-1.7 (-0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-27 2026-05-27
Inst Owners50.62%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap334.83B
Revenue(TTM)67.83B
Net Income(TTM)20.50B
Analysts82.5
Price Target254.42 (6.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend6.25
Dividend Growth(5Y)7.08%
DP43.88%
Div Incr Years9
Div Non Decr Years9
Ex-Date04-23 2026-04-23 (1.64)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.51%
Min EPS beat(2)3%
Max EPS beat(2)6.02%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-4.92%
Max EPS beat(4)12.29%
EPS beat(8)6
Avg EPS beat(8)4.12%
EPS beat(12)8
Avg EPS beat(12)2.39%
EPS beat(16)11
Avg EPS beat(16)2.12%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)2.86%
Revenue beat(8)4
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.82%
PT rev (1m)1.22%
PT rev (3m)5.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 13.35 | ||
| P/S | 4.94 | ||
| P/FCF | 5.6 | ||
| P/OCF | 5.4 | ||
| P/B | 2.4 | ||
| P/tB | 2.96 | ||
| EV/EBITDA | N/A |
EPS(TTM)14.89
EY6.22%
EPS(NY)17.95
Fwd EY7.49%
FCF(TTM)42.79
FCFY17.86%
OCF(TTM)44.33
OCFY18.51%
SpS48.53
BVpS100.02
TBVpS80.99
PEG (NY)1.19
PEG (5Y)1.28
Graham Number183.057 (-23.59%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 14.66% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 30.22% | ||
| GM | N/A | ||
| FCFM | 88.17% |
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-Score8
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.49 | ||
| Debt/FCF | 5.81 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 71.61% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 291.73% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC12.82%
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)15.7%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%12.71%
EPS Next Y13.48%
EPS Next 2Y11.53%
EPS Next 3Y10.38%
EPS Next 5YN/A
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%7.29%
Revenue Next Year7.75%
Revenue Next 2Y6.12%
Revenue Next 3Y4.96%
Revenue Next 5Y3.85%
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 1Y1371.94%
FCF growth 3Y39.67%
FCF growth 5Y-17.21%
OCF growth 1Y842.13%
OCF growth 3Y36.02%
OCF growth 5Y-16.84%
ROYAL BANK OF CANADA / RY.CA Fundamental Analysis 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.
What is the valuation status of ROYAL BANK OF CANADA (RY.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to ROYAL BANK OF CANADA (RY.CA). This can be considered as Overvalued.
Can you provide the profitability details for ROYAL BANK OF CANADA?
ROYAL BANK OF CANADA (RY.CA) has a profitability rating of 4 / 10.
Can you provide the financial health for RY stock?
The financial health rating of ROYAL BANK OF CANADA (RY.CA) is 3 / 10.
What is the earnings growth outlook for ROYAL BANK OF CANADA?
The Earnings per Share (EPS) of ROYAL BANK OF CANADA (RY.CA) is expected to grow by 13.48% in the next year.