ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
Canada - TSX:RY - CA7800871021 - Common Stock
205.25 CAD
-0.39 (-0.19%)
Taking everything into account, RY scores 4 out of 10 in our fundamental rating. RY was compared to 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 not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years RY has been profitable.
In the past 5 years RY always reported a positive cash flow from operatings.
1.2 Ratios
RY has a better Return On Assets (0.84%) than 65.38% of its industry peers.
Looking at the Return On Equity, with a value of 13.80%, RY is in the better half of 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
RY's Profit Margin of 29.01% is fine compared to the rest 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.
Compared to 1 year ago, RY has more shares outstanding
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 3.86. This is a good value and a sign of high solvency as RY would need 3.86 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.86, RY belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
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
WACC13.25%
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.
RY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
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
Based on estimates for the next years, RY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.00% on average per year.
RY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
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
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.
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
The Price/Earnings ratio is 15.04, which indicates a correct valuation of RY.
Based on the Price/Earnings ratio, RY is valued more expensive than 88.46% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.67, RY is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.27, which indicates a correct valuation of RY.
Based on the Price/Forward Earnings ratio, RY is valued more expensive than 96.15% of the companies in the same industry.
RY is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 13.27 |
4.2 Price Multiples
RY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.4 | ||
| 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)0.77
PEG (5Y)2.36
EPS Next 2Y13.07%
EPS Next 3Y12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, RY has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.02, RY pays less dividend than the industry average, which is at 3.82. 88.46% of the companies listed in the same industry pay a better dividend than RY!
RY's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| 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 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
46.12% 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.
DP46.12%
EPS Next 2Y13.07%
EPS Next 3Y12%
TSX:RY (11/6/2025, 7:00:00 PM)
205.25
-0.39 (-0.19%)
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 Cap288.37B
Revenue(TTM)64.47B
Net Income(TTM)18.70B
Analysts82.61
Price Target215.38 (4.94%)
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)0.29%
PT rev (3m)11.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)0%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 13.27 | ||
| P/S | 4.47 | ||
| P/FCF | 3.4 | ||
| P/OCF | 3.31 | ||
| P/B | 2.13 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.65
EY6.65%
EPS(NY)15.47
Fwd EY7.54%
FCF(TTM)60.36
FCFY29.41%
OCF(TTM)62.04
OCFY30.23%
SpS45.89
BVpS96.49
TBVpS77.45
PEG (NY)0.77
PEG (5Y)2.36
Graham Number172.14
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
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-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
WACC13.25%
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%
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.
What is the valuation status for RY stock?
ChartMill assigns a valuation rating of 4 / 10 to ROYAL BANK OF CANADA (RY.CA). This can be considered as Fairly Valued.
How profitable is ROYAL BANK OF CANADA (RY.CA) stock?
ROYAL BANK OF CANADA (RY.CA) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for RY stock?
The Earnings per Share (EPS) of ROYAL BANK OF CANADA (RY.CA) is expected to grow by 19.43% in the next year.
Can you provide the dividend sustainability for RY stock?
The dividend rating of ROYAL BANK OF CANADA (RY.CA) is 5 / 10 and the dividend payout ratio is 46.12%.