RY Fundamental Analysis - ROYAL BANK OF CANADA

Fundamental Rating

Overall RY gets a fundamental rating of 4 out of 10. We evaluated RY against 29 industry peers in the Banks industry. While RY is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, RY is valued expensive at the moment.

Quickly go to:

1. Profitability

1.1 Basic Checks

RY had positive earnings in the past year.

RY had a positive operating cash flow in the past year.

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 Return On Assets of 0.79%. This is in the better half of the industry: RY outperforms 65.52% of its industry peers.

RY has a Return On Equity of 13.43%. This is amongst the best in the industry. RY outperforms 86.21% 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

Looking at the Profit Margin, with a value of 28.64%, RY is in the better half of the industry, outperforming 65.52% of the companies in the same industry.

In the last couple of years the Profit Margin of RY has remained more or less at the same level.

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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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 increased compared to 1 year ago.

The number of shares outstanding for RY has been reduced compared to 5 years ago.

Compared to 1 year ago, RY has an improved debt to assets ratio.

2.2 Solvency

RY has a debt to FCF ratio of 4.34. This is a neutral value as RY would need 4.34 years to pay back of all of its debts.

The Debt to FCF ratio of RY (4.34) is better than 82.76% of its industry peers.

A Debt/Equity ratio of 2.57 is on the high side and indicates that RY has dependencies on debt financing.

With a Debt to Equity ratio value of 2.57, RY is not doing good in the industry: 62.07% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	2.57
Debt/FCF	4.34
Altman-Z	N/A

ROIC/WACCN/A

WACC13.28%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.75% over the past year.

RY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.

RY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.54%.

RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.51% yearly.

EPS 1Y (TTM)14.75%

EPS 3Y2.64%

EPS 5Y6.36%

EPS Q2Q%6.85%

Revenue 1Y (TTM)16.54%

Revenue growth 3Y4.89%

Revenue growth 5Y4.51%

Sales Q2Q%10.72%

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 9.87% on average per year.

Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.

EPS Next Y14.44%

EPS Next 2Y10.75%

EPS Next 3Y9.87%

EPS Next 5YN/A

Revenue Next Year12.09%

Revenue Next 2Y7.33%

Revenue Next 3Y6.03%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.93, the valuation of RY can be described as correct.

RY's Price/Earnings ratio is rather expensive when compared to the industry. RY is more expensive than 93.10% of the companies in the same industry.

The average S&P500 Price/Earnings ratio is at 26.54. RY is valued slightly cheaper when compared to this.

With a Price/Forward Earnings ratio of 12.27, RY is valued correctly.

Based on the Price/Forward Earnings ratio, RY is valued expensively inside the industry as 96.55% of the companies are valued cheaper.

Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, RY is valued rather cheaply.

		Industry Rank	Sector Rank
PE	13.93
Fwd PE	12.27

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	3.26
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

PEG (NY)0.97

PEG (5Y)2.19

EPS Next 2Y10.75%

EPS Next 3Y9.87%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

RY has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.

With a Dividend Yield of 3.52, RY pays less dividend than the industry average, which is at 4.60. 89.66% of the companies listed in the same industry pay a better dividend than RY!

Compared to an average S&P500 Dividend Yield of 2.40, RY pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	3.52%

5.2 History

The dividend of RY has a limited annual growth rate of 2.34%.

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)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 2Y10.75%

EPS Next 3Y9.87%

More info and screens

Find the best dividend stocks

Show peers with best dividend

ROYAL BANK OF CANADA

TSX:RY (8/7/2025, 7:00:00 PM)

182.12

+0.34 (+0.19%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)05-29 2025-05-29/bmo

Earnings (Next)08-27 2025-08-27/bmo

Inst Owners49.26%

Inst Owner ChangeN/A

Ins Owners0.01%

Ins Owner ChangeN/A

Market Cap256.88B

Analysts83.33

Price Target193.51 (6.25%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.52%

Yearly Dividend4.72

Dividend Growth(5Y)2.34%

DP47.48%

Div Incr Years8

Div Non Decr Years8

Ex-Date07-24 2025-07-24 (1.54)

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)3.96%

PT rev (3m)6.01%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-0.42%

EPS NY rev (1m)0%

EPS NY rev (3m)0%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-0.46%

Revenue NY rev (1m)-0.11%

Revenue NY rev (3m)-0.19%

Valuation

		Industry Rank	Sector Rank
PE	13.93
Fwd PE	12.27
P/S	4.14
P/FCF	3.26
P/OCF	3.16
P/B	1.94
P/tB	2.43
EV/EBITDA	N/A

EPS(TTM)13.07

EY7.18%

EPS(NY)14.84

Fwd EY8.15%

FCF(TTM)55.89

FCFY30.69%

OCF(TTM)57.7

OCFY31.68%

SpS44.04

BVpS93.9

TBVpS74.89

PEG (NY)0.97

PEG (5Y)2.19

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

WACC13.28%

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)14.75%

EPS 3Y2.64%

EPS 5Y6.36%

EPS Q2Q%6.85%

EPS Next Y14.44%

EPS Next 2Y10.75%

EPS Next 3Y9.87%

EPS Next 5YN/A

Revenue 1Y (TTM)16.54%

Revenue growth 3Y4.89%

Revenue growth 5Y4.51%

Sales Q2Q%10.72%

Revenue Next Year12.09%

Revenue Next 2Y7.33%

Revenue Next 3Y6.03%

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%

ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens