ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
TSX:RY - Toronto Stock Exchange - CA7800871021 - Common Stock - Currency: CAD
Overall RY gets a fundamental rating of 4 out of 10. We evaluated RY against 29 industry peers in the Banks industry. There are concerns on the financial health of RY while its profitability can be described as average. RY is quite expensive at the moment. It does show a decent growth rate. 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
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's Return On Equity of 13.43% is amongst the best of 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 better Profit Margin (28.64%) than 65.52% of its industry peers.
In the last couple of years the Profit Margin of RY has remained more or less at the same level.
RY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| 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.
RY has more shares outstanding than it did 1 year ago.
RY has less shares outstanding than it did 5 years ago.
RY has a better debt/assets ratio than last year.
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.
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.
A Debt/Equity ratio of 2.57 is on the high side and indicates that RY has dependencies on debt financing.
RY has a Debt to Equity ratio of 2.57. This is in the lower half of the industry: RY underperforms 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
WACC13.73%
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.
The Revenue has been growing slightly by 4.51% on average over the past years.
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
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.96, the valuation of RY can be described as correct.
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 (27.69), we can say RY is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.29, which indicates a correct valuation of RY.
Based on the Price/Forward Earnings ratio, RY is valued more expensive than 96.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.36. RY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as RY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.26 | ||
| 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)0.97
PEG (5Y)2.19
EPS Next 2Y10.75%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 4.85%, which is a nice return.
Compared to an average industry Dividend Yield of 4.07, RY pays a bit more dividend than its industry peers.
RY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
5.2 History
The dividend of RY has a limited annual growth rate of 2.34%.
RY has been paying a dividend for at least 10 years, so it has 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
RY pays out 47.48% 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.
DP47.48%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
TSX:RY (7/23/2025, 7:00:00 PM)
182.42
+1.21 (+0.67%)
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 Cap257.30B
Analysts83.33
Price Target193.51 (6.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
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 | 13.96 | ||
| Fwd PE | 12.29 | ||
| P/S | 4.14 | ||
| P/FCF | 3.26 | ||
| P/OCF | 3.16 | ||
| P/B | 1.94 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.07
EY7.16%
EPS(NY)14.84
Fwd EY8.14%
FCF(TTM)55.89
FCFY30.64%
OCF(TTM)57.7
OCFY31.63%
SpS44.04
BVpS93.9
TBVpS74.89
PEG (NY)0.97
PEG (5Y)2.19
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
WACC13.73%
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%