ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:RY • CA7800871021
236.29 CAD
+3.57 (+1.53%)
Last: Feb 9, 2026, 07:00 PM
Overall RY gets a fundamental rating of 4 out of 10. We evaluated RY against 24 industry peers in the Banks industry. There are concerns on the financial health of RY while its profitability can be described as average. 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.
- Each year in the past 5 years RY had a positive operating cash flow.
1.2 Ratios
- RY has a better Return On Assets (0.85%) than 75.00% of its industry peers.
- The Return On Equity of RY (14.28%) is better than 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
- Looking at the Profit Margin, with a value of 29.83%, RY belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
- In the last couple of years the Profit Margin of RY has grown nicely.
- 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.
- RY has less shares outstanding than it did 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 Debt to FCF ratio of 6.67. This is amongst the best in the industry. RY outperforms 91.67% 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.
- RY has a Debt to Equity ratio (2.53) which 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
WACC12.85%
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.
- 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
- RY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.30% yearly.
- The Revenue is expected to grow by 3.82% 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 5Y3.82%
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 16.37, RY is valued correctly.
- 91.67% of the companies in the same industry are cheaper than RY, based on the Price/Earnings ratio.
- RY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.67 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 27.86. RY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, RY is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.24 | ||
| 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)1.41
PEG (5Y)1.3
EPS Next 2Y11%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.84%, RY has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.05, RY is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.80, RY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
- On average, the dividend of RY grows each year by 7.08%, which is quite nice.
- 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)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.
- RY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP44.29%
EPS Next 2Y11%
EPS Next 3Y10.3%
TSX:RY (2/9/2026, 7:00:00 PM)
236.29
+3.57 (+1.53%)
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 Cap330.83B
Revenue(TTM)66.61B
Net Income(TTM)19.87B
Analysts82.5
Price Target241.3 (2.12%)
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 | 16.37 | ||
| Fwd PE | 14.67 | ||
| P/S | 4.97 | ||
| P/FCF | 6.24 | ||
| P/OCF | 5.99 | ||
| P/B | 2.38 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)14.43
EY6.11%
EPS(NY)16.1
Fwd EY6.82%
FCF(TTM)37.84
FCFY16.01%
OCF(TTM)39.44
OCFY16.69%
SpS47.57
BVpS99.34
TBVpS80.2
PEG (NY)1.41
PEG (5Y)1.3
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
WACC12.85%
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%.