ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
Canada - TSX:RY - CA7800871021 - Common Stock
201.2 CAD
-2.61 (-1.28%)
RY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 industry peers in the Banks industry. RY has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, RY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
RY had positive earnings in the past year.
In the past year RY had a positive cash flow from operations.
RY had positive earnings in each of the past 5 years.
RY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.84%, RY is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
With a decent Return On Equity value of 13.80%, RY is doing good in the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 13.8% | ||
| ROIC | N/A |
ROA(3y)0.75%
ROA(5y)0.77%
ROE(3y)13.13%
ROE(5y)13.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 29.01%, RY is doing good in the industry, outperforming 65.38% of the companies in the same industry.
In the last couple of years the Profit Margin of RY has remained more or less at the same level.
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) | 29.01% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.41%
PM growth 5Y0.27%
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.
The number of shares outstanding for RY has been increased compared to 1 year ago.
The number of shares outstanding for RY has been reduced compared to 5 years ago.
Compared to 1 year ago, RY has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of RY is 3.86, which is a good value as it means it would take RY, 3.86 years of fcf income to pay off all of its debts.
RY's Debt to FCF ratio of 3.86 is amongst the best of the industry. RY outperforms 80.77% of its industry peers.
RY has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
RY has a Debt to Equity ratio of 2.41. This is in the lower half of the industry: RY underperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.47%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.58%, which is quite good.
Measured over the past 5 years, RY shows a small growth in Earnings Per Share. The EPS has been growing by 6.36% on average per year.
The Revenue has grown by 17.31% in the past year. This is quite good.
The Revenue has been growing slightly by 4.51% on average over the past years.
EPS 1Y (TTM)15.58%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%17.79%
Revenue 1Y (TTM)17.31%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%16.09%
3.2 Future
The Earnings Per Share is expected to grow by 12.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.68% on average over the next years.
EPS Next Y19.43%
EPS Next 2Y13.07%
EPS Next 3Y12%
EPS Next 5YN/A
Revenue Next Year15.03%
Revenue Next 2Y8.87%
Revenue Next 3Y6.95%
Revenue Next 5Y4.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.74 indicates a correct valuation of RY.
88.46% of the companies in the same industry are cheaper than RY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.35, RY is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.01 indicates a correct valuation of RY.
Based on the Price/Forward Earnings ratio, RY is valued more expensive than 92.31% of the companies in the same industry.
RY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
RY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.33 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.76
PEG (5Y)2.32
EPS Next 2Y13.07%
EPS Next 3Y12%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.02%.
With a Dividend Yield of 3.02, RY pays less dividend than the industry average, which is at 3.45. 88.46% of the companies listed in the same industry pay a better dividend than RY!
Compared to an average S&P500 Dividend Yield of 2.44, RY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of RY has a limited annual growth rate of 2.34%.
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)2.34%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
RY pays out 46.12% of its income as dividend. 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.
DP46.12%
EPS Next 2Y13.07%
EPS Next 3Y12%
TSX:RY (10/10/2025, 7:00:00 PM)
201.2
-2.61 (-1.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.06%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap282.68B
Analysts82.61
Price Target214.75 (6.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend4.72
Dividend Growth(5Y)2.34%
DP46.12%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.68%
Min EPS beat(2)-4.92%
Max EPS beat(2)12.29%
EPS beat(4)2
Avg EPS beat(4)3.56%
Min EPS beat(4)-4.92%
Max EPS beat(4)12.29%
EPS beat(8)5
Avg EPS beat(8)3.19%
EPS beat(12)8
Avg EPS beat(12)1.9%
EPS beat(16)10
Avg EPS beat(16)1.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-3.31%
Max Revenue beat(2)2.86%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)4.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)5
Avg Revenue beat(12)-0.09%
Revenue beat(16)7
Avg Revenue beat(16)-0.54%
PT rev (1m)0%
PT rev (3m)15.37%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)5.47%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 13.01 | ||
| P/S | 4.38 | ||
| P/FCF | 3.33 | ||
| P/OCF | 3.24 | ||
| P/B | 2.09 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.65
EY6.78%
EPS(NY)15.47
Fwd EY7.69%
FCF(TTM)60.36
FCFY30%
OCF(TTM)62.04
OCFY30.84%
SpS45.89
BVpS96.49
TBVpS77.45
PEG (NY)0.76
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 13.8% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.01% | ||
| GM | N/A | ||
| FCFM | 131.54% |
ROA(3y)0.75%
ROA(5y)0.77%
ROE(3y)13.13%
ROE(5y)13.65%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-4.41%
PM growth 5Y0.27%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 75.25% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 453.44% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC13.47%
ROIC/WACCN/A
Cap/Depr(3y)88.62%
Cap/Depr(5y)89.9%
Cap/Sales(3y)4.79%
Cap/Sales(5y)4.87%
Profit Quality(3y)139.56%
Profit Quality(5y)402.31%
High Growth Momentum
Growth
EPS 1Y (TTM)15.58%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%17.79%
EPS Next Y19.43%
EPS Next 2Y13.07%
EPS Next 3Y12%
EPS Next 5YN/A
Revenue 1Y (TTM)17.31%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%16.09%
Revenue Next Year15.03%
Revenue Next 2Y8.87%
Revenue Next 3Y6.95%
Revenue Next 5Y4.68%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year9.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y148.55%
FCF growth 3Y-29.23%
FCF growth 5Y11.68%
OCF growth 1Y136.54%
OCF growth 3Y-27.63%
OCF growth 5Y10.16%