ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
Canada - TSX:RY - CA7800871021 - Common Stock
203.14 CAD
+1.5 (+0.74%)
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. RY is quite expensive at the moment. It does show a decent growth rate. Finally RY also has an excellent dividend rating.
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.
RY had positive earnings in each of the past 5 years.
Each year in the past 5 years RY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RY (0.84%) is better than 65.38% of its industry peers.
RY's Return On Equity of 13.80% is fine compared to the rest of the industry. RY outperforms 65.38% of its industry peers.
| 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
RY has a Profit Margin of 29.01%. This is in the better half of the industry: RY outperforms 65.38% 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) | 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.
Compared to 5 years ago, RY has less shares outstanding
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's Debt to Equity ratio of 2.41 is on the low side compared to the rest of the industry. RY is outperformed by 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
WACC13.6%
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 10.58% 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 4.35% on average per year.
EPS Next Y13.24%
EPS Next 2Y10.55%
EPS Next 3Y10.58%
EPS Next 5YN/A
Revenue Next Year15.03%
Revenue Next 2Y8.87%
Revenue Next 3Y6.95%
Revenue Next 5Y4.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
RY is valuated correctly with a Price/Earnings ratio of 14.88.
Compared to the rest of the industry, the Price/Earnings ratio of RY indicates a rather expensive valuation: RY more expensive than 88.46% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. RY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.74 indicates a correct valuation of RY.
Based on the Price/Forward Earnings ratio, RY is valued expensively inside the industry as 96.15% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of RY to the average of the S&P500 Index (22.87), we can say RY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 13.74 |
4.2 Price Multiples
RY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.37 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.12
PEG (5Y)2.34
EPS Next 2Y10.55%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.88%, RY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.04, RY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, RY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
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.
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
46.12% of the earnings are spent on dividend by RY. 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.
DP46.12%
EPS Next 2Y10.55%
EPS Next 3Y10.58%
TSX:RY (9/19/2025, 7:00:00 PM)
203.14
+1.5 (+0.74%)
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 Cap285.41B
Analysts83.48
Price Target214.75 (5.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
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)10.98%
PT rev (3m)15.37%
EPS NQ rev (1m)4.25%
EPS NQ rev (3m)6.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)1.63%
Revenue NQ rev (3m)4.35%
Revenue NY rev (1m)2.63%
Revenue NY rev (3m)2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 13.74 | ||
| P/S | 4.43 | ||
| P/FCF | 3.37 | ||
| P/OCF | 3.27 | ||
| P/B | 2.11 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.65
EY6.72%
EPS(NY)14.79
Fwd EY7.28%
FCF(TTM)60.36
FCFY29.71%
OCF(TTM)62.04
OCFY30.54%
SpS45.89
BVpS96.49
TBVpS77.45
PEG (NY)1.12
PEG (5Y)2.34
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
WACC13.6%
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 Y13.24%
EPS Next 2Y10.55%
EPS Next 3Y10.58%
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 5Y4.35%
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%