ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RY - CA7800871021 - Common Stock
235.45 CAD
-2.8 (-1.18%)
We assign a fundamental rating of 4 out of 10 to RY. RY was compared to 22 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.
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
RY has a better Return On Assets (0.85%) than 77.27% of its industry peers.
RY's Return On Equity of 14.28% is fine compared to the rest of the industry. RY outperforms 77.27% 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 95.45% of its industry peers.
RY's Profit Margin has improved in the last couple of years.
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) | 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.
The number of shares outstanding for RY has been reduced compared to 1 year ago.
RY has less shares outstanding than it did 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 has a better Debt to FCF ratio (6.67) than 90.91% of its industry peers.
A Debt/Equity ratio of 2.53 is on the high side and indicates that RY has dependencies on debt financing.
With a Debt to Equity ratio value of 2.53, RY perfoms like the industry average, outperforming 40.91% of the companies in the same 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
RY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.26%, which is quite good.
RY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.61% yearly.
The Revenue has grown by 16.15% in the past year. This is quite good.
Measured over the past years, RY shows a small growth in Revenue. The Revenue has been growing by 7.14% on average per year.
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
Based on estimates for the next years, RY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.30% on average per year.
The Revenue is expected to grow by 2.44% on average over the next years.
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 5Y2.44%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 16.32, RY is valued correctly.
Based on the Price/Earnings ratio, RY is valued more expensive than 90.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of RY to the average of the S&P500 Index (27.17), we can say RY is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.62 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 95.45% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. RY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 14.62 |
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 | 6.22 | ||
| 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)1.41
PEG (5Y)1.29
EPS Next 2Y11%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 2.80%.
With a Dividend Yield of 2.80, RY pays less dividend than the industry average, which is at 3.14. 86.36% 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
On average, the dividend of RY grows each year by 7.08%, which is quite nice.
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 (1/6/2026, 7:00:00 PM)
235.45
-2.8 (-1.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.22%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap329.66B
Revenue(TTM)66.61B
Net Income(TTM)19.87B
Analysts81.74
Price Target239.34 (1.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend6.25
Dividend Growth(5Y)7.08%
DP44.29%
Div Incr Years8
Div Non Decr Years8
Ex-Date
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)9.76%
PT rev (3m)11.45%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)2.47%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 14.62 | ||
| P/S | 4.95 | ||
| P/FCF | 6.22 | ||
| P/OCF | 5.97 | ||
| P/B | 2.37 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)14.43
EY6.13%
EPS(NY)16.1
Fwd EY6.84%
FCF(TTM)37.84
FCFY16.07%
OCF(TTM)39.44
OCFY16.75%
SpS47.57
BVpS99.34
TBVpS80.2
PEG (NY)1.41
PEG (5Y)1.29
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 5Y2.44%
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 2 / 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%.