ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
TSX:RY - Toronto Stock Exchange - CA7800871021 - Common Stock - Currency: CAD
RY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 industry peers in the Banks industry. RY has a medium profitability rating, but doesn't score so well on its financial health evaluation. RY is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
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
With a decent Return On Assets value of 0.79%, RY is doing good in the industry, outperforming 65.52% of the companies in the same industry.
RY has a better Return On Equity (13.43%) than 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 13.43% | ||
| 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
RY's Profit Margin of 28.64% is fine compared to the rest of the industry. RY outperforms 62.07% of its industry peers.
RY's Profit Margin has been stable 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) | 28.64% | ||
| 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.
The debt/assets ratio for RY has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of RY is 4.34, which is a neutral value as it means it would take RY, 4.34 years of fcf income to pay off all of its debts.
RY has a better Debt to FCF ratio (4.34) than 82.76% of its industry peers.
RY has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.57, RY is doing worse than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.22%
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 14.05% over the past year.
RY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
Looking at the last year, RY shows a quite strong growth in Revenue. The Revenue has grown by 16.54% in the last year.
Measured over the past years, RY shows a small growth in Revenue. The Revenue has been growing by 4.51% on average per year.
EPS 1Y (TTM)14.05%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%4.14%
Revenue 1Y (TTM)16.54%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%7.68%
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 9.87% yearly.
Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
EPS Next Y14.44%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
EPS Next 5YN/A
Revenue Next Year12.21%
Revenue Next 2Y7.66%
Revenue Next 3Y6.1%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.36, which indicates a correct valuation of RY.
Compared to the rest of the industry, the Price/Earnings ratio of RY indicates a rather expensive valuation: RY more expensive than 89.66% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RY to the average of the S&P500 Index (26.32), we can say RY is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.69, the valuation of RY can be described as reasonable.
RY's Price/Forward Earnings ratio is rather expensive when compared to the industry. RY is more expensive than 96.55% 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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.36 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
62.07% of the companies in the same industry are cheaper than RY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.11 | ||
| 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)0.93
PEG (5Y)2.1
EPS Next 2Y10.75%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.51%.
RY's Dividend Yield is slightly below the industry average, which is at 4.02.
Compared to an average S&P500 Dividend Yield of 2.40, RY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
5.2 History
The dividend of RY has a limited annual growth rate of 2.34%.
RY has paid a dividend for at least 10 years, which is 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)2.34%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
RY pays out 47.48% 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.
DP47.48%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
TSX:RY (6/13/2025, 7:00:00 PM)
173.55
-1.72 (-0.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.26%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap245.46B
Analysts83.33
Price Target184.51 (6.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Yearly Dividend4.72
Dividend Growth(5Y)2.34%
DP47.48%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.22%
Min EPS beat(2)-7.34%
Max EPS beat(2)7.78%
EPS beat(4)2
Avg EPS beat(4)1.56%
Min EPS beat(4)-7.34%
Max EPS beat(4)7.78%
EPS beat(8)5
Avg EPS beat(8)1.58%
EPS beat(12)7
Avg EPS beat(12)0.11%
EPS beat(16)10
Avg EPS beat(16)0.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-5.97%
Max Revenue beat(2)4.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-5.97%
Max Revenue beat(4)4.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.34%
Revenue beat(12)4
Avg Revenue beat(12)-0.79%
Revenue beat(16)7
Avg Revenue beat(16)-0.57%
PT rev (1m)1.72%
PT rev (3m)1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.36 | ||
| Fwd PE | 11.69 | ||
| P/S | 3.95 | ||
| P/FCF | 3.11 | ||
| P/OCF | 3.02 | ||
| P/B | 1.85 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.99
EY7.48%
EPS(NY)14.84
Fwd EY8.55%
FCF(TTM)55.74
FCFY32.12%
OCF(TTM)57.55
OCFY33.16%
SpS43.92
BVpS93.64
TBVpS74.68
PEG (NY)0.93
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 13.43% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 28.64% | ||
| GM | N/A | ||
| FCFM | 126.92% |
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 | 2.57 | ||
| Debt/FCF | 4.34 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 81.33% | ||
| Cap/Sales | 4.11% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 443.16% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC14.22%
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)14.05%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%4.14%
EPS Next Y14.44%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
EPS Next 5YN/A
Revenue 1Y (TTM)16.54%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%7.68%
Revenue Next Year12.21%
Revenue Next 2Y7.66%
Revenue Next 3Y6.1%
Revenue Next 5YN/A
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 1Y106.52%
FCF growth 3Y-29.23%
FCF growth 5Y11.68%
OCF growth 1Y98.82%
OCF growth 3Y-27.63%
OCF growth 5Y10.16%