ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RY - CA7800871021 - Common Stock
218.64 CAD
+2.43 (+1.12%)
Taking everything into account, RY scores 4 out of 10 in our fundamental rating. RY was compared to 25 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.
In the past 5 years RY has always been profitable.
Each year in the past 5 years RY had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.84%, RY is doing good in the industry, outperforming 68.00% of the companies in the same industry.
The Return On Equity of RY (13.80%) is better than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 13.8% | ||
| 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 (29.01%) than 68.00% of its industry peers.
RY's Profit Margin has been stable 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) | 29.01% | ||
| 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.
Compared to 1 year ago, RY has more shares outstanding
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 3.86, which is a good value as it means it would take RY, 3.86 years of fcf income to pay off all of its debts.
RY's Debt to FCF ratio of 3.86 is fine compared to the rest of the industry. RY outperforms 80.00% of its industry peers.
RY has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
RY has a worse Debt to Equity ratio (2.41) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.02%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.58% over the past year.
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 17.31% in the last year.
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)17.31%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%16.09%
3.2 Future
The Earnings Per Share is expected to grow by 12.00% on average over the next years. This is quite good.
Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 4.88% on average per year.
EPS Next Y19.05%
EPS Next 2Y13.07%
EPS Next 3Y12%
EPS Next 5YN/A
Revenue Next Year15.03%
Revenue Next 2Y8.87%
Revenue Next 3Y6.95%
Revenue Next 5Y4.88%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.02, which indicates a correct valuation of RY.
Based on the Price/Earnings ratio, RY is valued expensively inside the industry as 88.00% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of RY to the average of the S&P500 Index (26.37), we can say RY is valued slightly cheaper.
RY is valuated correctly with a Price/Forward Earnings ratio of 14.13.
92.00% of the companies in the same industry are cheaper than RY, based on the Price/Forward Earnings ratio.
RY is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 14.13 |
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 | 3.62 | ||
| 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)0.84
PEG (5Y)2.52
EPS Next 2Y13.07%
EPS Next 3Y12%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
RY's Dividend Yield is slightly below the industry average, which is at 3.24.
RY's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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
46.12% 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.
DP46.12%
EPS Next 2Y13.07%
EPS Next 3Y12%
TSX:RY (12/3/2025, 7:00:00 PM)
218.64
+2.43 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.06%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap307.19B
Revenue(TTM)64.47B
Net Income(TTM)18.70B
Analysts82.61
Price Target218.05 (-0.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend4.72
Dividend Growth(5Y)2.34%
DP46.12%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.68%
Min EPS beat(2)-4.92%
Max EPS beat(2)12.29%
EPS beat(4)2
Avg EPS beat(4)3.56%
Min EPS beat(4)-4.92%
Max EPS beat(4)12.29%
EPS beat(8)5
Avg EPS beat(8)3.19%
EPS beat(12)8
Avg EPS beat(12)1.9%
EPS beat(16)10
Avg EPS beat(16)1.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-3.31%
Max Revenue beat(2)2.86%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)4.2%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)5
Avg Revenue beat(12)-0.09%
Revenue beat(16)7
Avg Revenue beat(16)-0.54%
PT rev (1m)1.53%
PT rev (3m)10.23%
EPS NQ rev (1m)1.13%
EPS NQ rev (3m)4.38%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)5.14%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)2.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 14.13 | ||
| P/S | 4.76 | ||
| P/FCF | 3.62 | ||
| P/OCF | 3.52 | ||
| P/B | 2.27 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.65
EY6.24%
EPS(NY)15.47
Fwd EY7.07%
FCF(TTM)60.36
FCFY27.61%
OCF(TTM)62.04
OCFY28.38%
SpS45.89
BVpS96.49
TBVpS77.45
PEG (NY)0.84
PEG (5Y)2.52
Graham Number172.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 13.8% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.01% | ||
| GM | N/A | ||
| FCFM | 131.54% |
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
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-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 | 2.41 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 75.25% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 453.44% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC13.02%
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 Y19.05%
EPS Next 2Y13.07%
EPS Next 3Y12%
EPS Next 5YN/A
Revenue 1Y (TTM)17.31%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%16.09%
Revenue Next Year15.03%
Revenue Next 2Y8.87%
Revenue Next 3Y6.95%
Revenue Next 5Y4.88%
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 1Y148.55%
FCF growth 3Y-29.23%
FCF growth 5Y11.68%
OCF growth 1Y136.54%
OCF growth 3Y-27.63%
OCF growth 5Y10.16%
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.
What is the valuation status for RY stock?
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.
Can you provide the expected EPS growth for RY stock?
The Earnings per Share (EPS) of ROYAL BANK OF CANADA (RY.CA) is expected to grow by 19.05% in the next year.
Can you provide the dividend sustainability for RY stock?
The dividend rating of ROYAL BANK OF CANADA (RY.CA) is 5 / 10 and the dividend payout ratio is 46.12%.