ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
TSX:RY - CA7800871021 - Common Stock
200.77 CAD
+0.7 (+0.35%)
Taking everything into account, RY scores 4 out of 10 in our fundamental rating. RY was compared to 27 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
RY had positive earnings in the past year.
In the past year RY had a positive cash flow from operations.
Each year in the past 5 years RY has been profitable.
RY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.79%, RY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
RY has a better Return On Equity (13.43%) than 85.19% 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 62.96% 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.
RY has more shares outstanding than it did 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
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.
Looking at the Debt to FCF ratio, with a value of 4.34, RY belongs to the top of the industry, outperforming 81.48% 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 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.51%
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.
RY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.43%.
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)11.43%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%16.09%
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 10.58% yearly.
Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y13.24%
EPS Next 2Y10.55%
EPS Next 3Y10.58%
EPS Next 5YN/A
Revenue Next Year12.09%
Revenue Next 2Y7.4%
Revenue Next 3Y6.07%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.71, the valuation of RY can be described as correct.
92.59% of the companies in the same industry are cheaper than RY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.17, RY is valued a bit cheaper.
RY is valuated correctly with a Price/Forward Earnings ratio of 13.58.
96.30% of the companies in the same industry are cheaper than RY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, RY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.58 |
4.2 Price Multiples
RY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.59 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.11
PEG (5Y)2.31
EPS Next 2Y10.55%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 4.92%, which is a nice return.
RY's Dividend Yield is comparable with the industry average which is at 4.93.
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 | 4.92% |
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
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 2Y10.55%
EPS Next 3Y10.58%
TSX:RY (8/28/2025, 7:00:00 PM)
200.77
+0.7 (+0.35%)
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 Cap283.19B
Analysts83.33
Price Target197.8 (-1.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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)2.22%
PT rev (3m)9.05%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.58 | ||
| P/S | 4.56 | ||
| P/FCF | 3.59 | ||
| P/OCF | 3.48 | ||
| P/B | 2.14 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.65
EY6.8%
EPS(NY)14.79
Fwd EY7.37%
FCF(TTM)55.89
FCFY27.84%
OCF(TTM)57.7
OCFY28.74%
SpS44.04
BVpS93.9
TBVpS74.89
PEG (NY)1.11
PEG (5Y)2.31
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
WACC13.51%
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)11.43%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%16.09%
Revenue Next Year12.09%
Revenue Next 2Y7.4%
Revenue Next 3Y6.07%
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%