ROYAL BANK OF CANADA (RY.CA) Fundamental Analysis & Valuation

TSX:RY • CA7800871021

Current stock price

224.21 CAD
+2.74 (+1.24%)
Last:

This RY.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. RY.CA Profitability Analysis

1.1 Basic Checks

  • RY had positive earnings in the past year.
  • RY had a positive operating cash flow in the past year.
  • In the past 5 years RY has always been profitable.
  • Each year in the past 5 years RY had a positive operating cash flow.
RY.CA Yearly Net Income VS EBIT VS OCF VS FCFRY.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

1.2 Ratios

  • RY's Return On Assets of 0.88% is fine compared to the rest of the industry. RY outperforms 75.00% of its industry peers.
  • RY's Return On Equity of 14.66% is fine compared to the rest of the industry. RY outperforms 79.17% of its industry peers.
Industry RankSector Rank
ROA 0.88%
ROE 14.66%
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
RY.CA Yearly ROA, ROE, ROICRY.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • The Profit Margin of RY (30.22%) is better than 95.83% of its industry peers.
  • RY's Profit Margin has improved in the last couple of years.
  • The Operating Margin and Gross Margin are not available for RY so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 30.22%
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
RY.CA Yearly Profit, Operating, Gross MarginsRY.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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3

2. RY.CA Health Analysis

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.
  • The number of shares outstanding for RY has been reduced compared to 5 years ago.
  • The debt/assets ratio for RY has been reduced compared to a year ago.
RY.CA Yearly Shares OutstandingRY.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
RY.CA Yearly Total Debt VS Total AssetsRY.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T 2T

2.2 Solvency

  • RY has a debt to FCF ratio of 5.81. This is a neutral value as RY would need 5.81 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 5.81, RY belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • RY has a Debt/Equity ratio of 2.49. This is a high value indicating a heavy dependency on external financing.
  • RY has a Debt to Equity ratio (2.49) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 5.81
Altman-Z N/A
ROIC/WACCN/A
WACC13.06%
RY.CA Yearly LT Debt VS Equity VS FCFRY.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
RY.CA Yearly Current Assets VS Current LiabilitesRY.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B

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5

3. RY.CA Growth Analysis

3.1 Past

  • RY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.70%, 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.
  • Looking at the last year, RY shows a quite strong growth in Revenue. The Revenue has grown by 11.93% in the last year.
  • RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.14% yearly.
EPS 1Y (TTM)15.7%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%12.71%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%7.29%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.30% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y13.34%
EPS Next 2Y11.52%
EPS Next 3Y11.3%
EPS Next 5YN/A
Revenue Next Year7.47%
Revenue Next 2Y6.01%
Revenue Next 3Y5.05%
Revenue Next 5Y3.85%

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 stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
RY.CA Yearly Revenue VS EstimatesRY.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B 80B
RY.CA Yearly EPS VS EstimatesRY.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

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3

4. RY.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • RY is valuated correctly with a Price/Earnings ratio of 15.06.
  • RY's Price/Earnings ratio is rather expensive when compared to the industry. RY is more expensive than 83.33% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.96. RY is valued slightly cheaper when compared to this.
  • RY is valuated correctly with a Price/Forward Earnings ratio of 12.49.
  • Based on the Price/Forward Earnings ratio, RY is valued more expensive than 91.67% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.04. RY is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.06
Fwd PE 12.49
RY.CA Price Earnings VS Forward Price EarningsRY.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, RY is valued a bit cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.24
EV/EBITDA N/A
RY.CA Per share dataRY.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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)1.13
PEG (5Y)1.19
EPS Next 2Y11.52%
EPS Next 3Y11.3%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. RY.CA Dividend Analysis

5.1 Amount

  • RY has a Yearly Dividend Yield of 5.59%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.25, RY pays a better dividend. On top of this RY pays more dividend than 95.83% of the companies listed in the same industry.
  • RY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 5.59%

5.2 History

  • The dividend of RY is nicely growing with an annual growth rate of 7.08%!
  • 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
RY.CA Yearly Dividends per shareRY.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • 43.88% 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.
DP43.88%
EPS Next 2Y11.52%
EPS Next 3Y11.3%
RY.CA Yearly Income VS Free CF VS DividendRY.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
RY.CA Dividend Payout.RY.CA Dividend Payout, showing the Payout Ratio.RY.CA Dividend Payout.PayoutRetained Earnings

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RY.CA Fundamentals: All Metrics, Ratios and Statistics

ROYAL BANK OF CANADA

TSX:RY (3/16/2026, 7:00:00 PM)

224.21

+2.74 (+1.24%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners50.67%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap313.38B
Revenue(TTM)67.83B
Net Income(TTM)20.50B
Analysts82.5
Price Target251.36 (12.11%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 5.59%
Yearly Dividend6.25
Dividend Growth(5Y)7.08%
DP43.88%
Div Incr Years8
Div Non Decr Years8
Ex-Date04-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.51%
Min EPS beat(2)3%
Max EPS beat(2)6.02%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-4.92%
Max EPS beat(4)12.29%
EPS beat(8)6
Avg EPS beat(8)4.12%
EPS beat(12)8
Avg EPS beat(12)2.39%
EPS beat(16)11
Avg EPS beat(16)2.12%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)2.86%
Revenue beat(8)4
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.82%
PT rev (1m)4.17%
PT rev (3m)6.35%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)1.81%
EPS NY rev (1m)1.55%
EPS NY rev (3m)4.06%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)3.89%
Valuation
Industry RankSector Rank
PE 15.06
Fwd PE 12.49
P/S 4.62
P/FCF 5.24
P/OCF 5.06
P/B 2.24
P/tB 2.77
EV/EBITDA N/A
EPS(TTM)14.89
EY6.64%
EPS(NY)17.95
Fwd EY8%
FCF(TTM)42.79
FCFY19.08%
OCF(TTM)44.33
OCFY19.77%
SpS48.53
BVpS100.02
TBVpS80.99
PEG (NY)1.13
PEG (5Y)1.19
Graham Number183.06
Profitability
Industry RankSector Rank
ROA 0.88%
ROE 14.66%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 30.22%
GM N/A
FCFM 88.17%
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-Score8
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 5.81
Debt/EBITDA N/A
Cap/Depr 71.61%
Cap/Sales 3.18%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 291.73%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC13.06%
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)15.7%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%12.71%
EPS Next Y13.34%
EPS Next 2Y11.52%
EPS Next 3Y11.3%
EPS Next 5YN/A
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%7.29%
Revenue Next Year7.47%
Revenue Next 2Y6.01%
Revenue Next 3Y5.05%
Revenue Next 5Y3.85%
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 1Y1371.94%
FCF growth 3Y39.67%
FCF growth 5Y-17.21%
OCF growth 1Y842.13%
OCF growth 3Y36.02%
OCF growth 5Y-16.84%

ROYAL BANK OF CANADA / RY.CA Fundamental Analysis 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 8 / 10 and the dividend payout ratio is 43.88%.