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. While RY is still in line with the averages on profitability rating, there are concerns on its financial health. RY has a decent growth rate and is not valued too expensively. 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.
In the past 5 years RY has always been profitable.
RY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RY has a better Return On Assets (0.79%) than 65.52% of its industry peers.
RY has a Return On Equity of 13.43%. This is amongst the best in the industry. RY outperforms 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 has a Profit Margin of 28.64%. This is in the better half of the industry: RY outperforms 65.52% 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.
Compared to 5 years ago, RY has less shares outstanding
RY has a better debt/assets ratio than last year.
2.2 Solvency
RY has a debt to FCF ratio of 4.34. This is a neutral value as RY would need 4.34 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.34, RY belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
RY has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
RY's Debt to Equity ratio of 2.57 is on the low side compared to the rest of the industry. RY is outperformed by 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.77%
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 14.75%, 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.
Looking at the last year, RY shows a quite strong growth in Revenue. The Revenue has grown by 16.54% in the last year.
RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.51% yearly.
EPS 1Y (TTM)14.75%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%6.85%
Revenue 1Y (TTM)16.54%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%10.72%
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 9.87% on average per year.
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 13.85, 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.
Compared to an average S&P500 Price/Earnings ratio of 28.04, RY is valued rather cheaply.
RY is valuated correctly with a Price/Forward Earnings ratio of 12.19.
Based on the Price/Forward Earnings ratio, RY is valued expensively inside the industry as 96.55% of the companies are valued cheaper.
RY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.24 | ||
| 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)0.96
PEG (5Y)2.18
EPS Next 2Y10.75%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.31, RY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, RY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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
47.48% 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.
DP47.48%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
TSX:RY (7/25/2025, 7:00:00 PM)
180.97
+0.9 (+0.5%)
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 Cap255.26B
Analysts83.33
Price Target193.51 (6.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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)1.43%
Min EPS beat(2)-4.92%
Max EPS beat(2)7.78%
EPS beat(4)2
Avg EPS beat(4)2.16%
Min EPS beat(4)-4.92%
Max EPS beat(4)7.78%
EPS beat(8)5
Avg EPS beat(8)1.88%
EPS beat(12)7
Avg EPS beat(12)0.31%
EPS beat(16)10
Avg EPS beat(16)0.99%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-3.31%
Max Revenue beat(2)4.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.11%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)4.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)-0.4%
PT rev (1m)4.88%
PT rev (3m)5.1%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 12.19 | ||
| P/S | 4.11 | ||
| P/FCF | 3.24 | ||
| P/OCF | 3.14 | ||
| P/B | 1.93 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.07
EY7.22%
EPS(NY)14.84
Fwd EY8.2%
FCF(TTM)55.89
FCFY30.89%
OCF(TTM)57.7
OCFY31.89%
SpS44.04
BVpS93.9
TBVpS74.89
PEG (NY)0.96
PEG (5Y)2.18
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
WACC13.77%
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)14.75%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%6.85%
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%10.72%
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%