ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:RY • CA7800871021
237.82 CAD
+1.53 (+0.65%)
Last: Feb 10, 2026, 07:00 PM
Taking everything into account, RY scores 4 out of 10 in our fundamental rating. RY was compared to 24 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.
- Each year in the past 5 years RY had a positive operating cash flow.
1.2 Ratios
- RY's Return On Assets of 0.85% is fine compared to the rest of the industry. RY outperforms 75.00% of its industry peers.
- RY's Return On Equity of 14.28% is fine compared to the rest of the industry. RY outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 14.28% | ||
| 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
- RY's Profit Margin of 29.83% is amongst the best of the industry. RY outperforms 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) | 29.83% | ||
| 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. 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 less shares outstanding
- 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 6.67, which is on the high side as it means it would take RY, 6.67 years of fcf income to pay off all of its debts.
- RY's Debt to FCF ratio of 6.67 is amongst the best of the industry. RY outperforms 91.67% of its industry peers.
- RY has a Debt/Equity ratio of 2.53. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of RY (2.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.83%
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 19.26% over the past year.
- 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.
- Looking at the last year, RY shows a quite strong growth in Revenue. The Revenue has grown by 16.15% in the last year.
- The Revenue has been growing slightly by 7.14% on average over the past years.
EPS 1Y (TTM)19.26%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%25.41%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%14.16%
3.2 Future
- The Earnings Per Share is expected to grow by 10.30% 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 3.82% on average per year.
EPS Next Y11.61%
EPS Next 2Y11%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue Next Year6.48%
Revenue Next 2Y5.73%
Revenue Next 3Y4.7%
Revenue Next 5Y3.82%
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. Valuation
4.1 Price/Earnings Ratio
- RY is valuated correctly with a Price/Earnings ratio of 16.48.
- RY's Price/Earnings ratio is rather expensive when compared to the industry. RY is more expensive than 91.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of RY to the average of the S&P500 Index (28.03), we can say RY is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.77, which indicates a correct valuation of RY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RY indicates a rather expensive valuation: RY more expensive than 95.83% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.97. RY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RY indicates a somewhat cheap valuation: RY is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.29 | ||
| 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)1.42
PEG (5Y)1.31
EPS Next 2Y11%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
- RY has a Yearly Dividend Yield of 2.84%.
- RY's Dividend Yield is slightly below the industry average, which is at 3.05.
- RY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
- The dividend of RY is nicely growing with an annual growth rate of 7.08%!
- RY has been paying a dividend for at least 10 years, so it has 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)7.08%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
- RY pays out 44.29% 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.
DP44.29%
EPS Next 2Y11%
EPS Next 3Y10.3%
TSX:RY (2/10/2026, 7:00:00 PM)
237.82
+1.53 (+0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)12-03 2025-12-03/bmo
Earnings (Next)02-26 2026-02-26
Inst Owners49.22%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap332.97B
Revenue(TTM)66.61B
Net Income(TTM)19.87B
Analysts82.5
Price Target241.3 (1.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend6.25
Dividend Growth(5Y)7.08%
DP44.29%
Div Incr Years8
Div Non Decr Years8
Ex-Date01-26 2026-01-26 (1.64)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.02%
Max EPS beat(2)12.29%
EPS beat(4)3
Avg EPS beat(4)5.29%
Min EPS beat(4)-4.92%
Max EPS beat(4)12.29%
EPS beat(8)5
Avg EPS beat(8)3.59%
EPS beat(12)8
Avg EPS beat(12)2.35%
EPS beat(16)11
Avg EPS beat(16)2.06%
Revenue beat(2)2
Avg Revenue beat(2)1.6%
Min Revenue beat(2)0.34%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)4.2%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.53%
PT rev (1m)0.82%
PT rev (3m)12.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)0%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 14.77 | ||
| P/S | 5 | ||
| P/FCF | 6.29 | ||
| P/OCF | 6.03 | ||
| P/B | 2.39 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)14.43
EY6.07%
EPS(NY)16.1
Fwd EY6.77%
FCF(TTM)37.84
FCFY15.91%
OCF(TTM)39.44
OCFY16.58%
SpS47.57
BVpS99.34
TBVpS80.2
PEG (NY)1.42
PEG (5Y)1.31
Graham Number179.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 14.28% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.83% | ||
| GM | N/A | ||
| FCFM | 79.54% |
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-Score9
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 72.85% | ||
| Cap/Sales | 3.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 266.65% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC12.83%
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)19.26%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%25.41%
EPS Next Y11.61%
EPS Next 2Y11%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue 1Y (TTM)16.15%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%14.16%
Revenue Next Year6.48%
Revenue Next 2Y5.73%
Revenue Next 3Y4.7%
Revenue Next 5Y3.82%
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 1Y153.98%
FCF growth 3Y39.67%
FCF growth 5Y-17.21%
OCF growth 1Y138.65%
OCF growth 3Y36.02%
OCF growth 5Y-16.84%
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.
Can you provide the valuation status for ROYAL BANK OF CANADA?
ChartMill assigns a valuation rating of 3 / 10 to ROYAL BANK OF CANADA (RY.CA). This can be considered as Overvalued.
How profitable is ROYAL BANK OF CANADA (RY.CA) stock?
ROYAL BANK OF CANADA (RY.CA) has a profitability rating of 4 / 10.
What is the financial health of ROYAL BANK OF CANADA (RY.CA) stock?
The financial health rating of ROYAL BANK OF CANADA (RY.CA) is 3 / 10.
How sustainable is the dividend of ROYAL BANK OF CANADA (RY.CA) stock?
The dividend rating of ROYAL BANK OF CANADA (RY.CA) is 6 / 10 and the dividend payout ratio is 44.29%.