ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RY - CA7800871021 - Common Stock
169.257 USD
+0.07 (+0.04%)
We assign a fundamental rating of 4 out of 10 to RY. RY was compared to 383 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. RY has a correct valuation and a medium growth rate. RY also has an excellent dividend rating.
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
With a Return On Assets value of 0.85%, RY perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
RY's Return On Equity of 14.28% is amongst the best of the industry. RY outperforms 91.64% 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
With a decent Profit Margin value of 29.83%, RY is doing good in the industry, outperforming 78.59% of the companies in the same industry.
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 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.
Compared to 1 year ago, RY has less 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
RY has a debt to FCF ratio of 6.67. This is a slightly negative value and a sign of low solvency as RY would need 6.67 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.67, RY is not doing good in the industry: 75.72% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.53 is on the high side and indicates that RY has dependencies on debt financing.
The Debt to Equity ratio of RY (2.53) is worse than 90.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.76%
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 19.26% over the past year.
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.
Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
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
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.
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
The Price/Earnings ratio is 16.29, which indicates a correct valuation of RY.
Based on the Price/Earnings ratio, RY is valued a bit more expensive than the industry average as 72.06% of the companies are valued more cheaply.
RY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 14.59, which indicates a correct valuation of RY.
Based on the Price/Forward Earnings ratio, RY is valued a bit more expensive than the industry average as 73.63% of the companies are valued more cheaply.
RY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RY is valued cheaper than 89.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| 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)1.4
PEG (5Y)1.29
EPS Next 2Y11%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.48%, RY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.90, RY pays a better dividend. On top of this RY pays more dividend than 87.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, RY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
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
44.29% of the earnings are spent on dividend by RY. 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%
NYSE:RY (1/12/2026, 9:46:09 AM)
169.257
+0.07 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.22%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap236.98B
Revenue(TTM)66.61B
Net Income(TTM)19.87B
Analysts82.5
Price Target173.54 (2.53%)
Short Float %0.39%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
Yearly Dividend4.5
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)2.47%
PT rev (3m)12.63%
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 | 16.29 | ||
| Fwd PE | 14.59 | ||
| P/S | 4.94 | ||
| P/FCF | 6.21 | ||
| P/OCF | 5.96 | ||
| P/B | 2.37 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.39
EY6.14%
EPS(NY)11.6
Fwd EY6.85%
FCF(TTM)27.25
FCFY16.1%
OCF(TTM)28.41
OCFY16.78%
SpS34.26
BVpS71.56
TBVpS57.77
PEG (NY)1.4
PEG (5Y)1.29
Graham Number129.34
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
WACC13.76%
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 FAQ
What is the ChartMill fundamental rating of ROYAL BANK OF CANADA (RY) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RY.
Can you provide the valuation status for ROYAL BANK OF CANADA?
ChartMill assigns a valuation rating of 4 / 10 to ROYAL BANK OF CANADA (RY). This can be considered as Fairly Valued.
How profitable is ROYAL BANK OF CANADA (RY) stock?
ROYAL BANK OF CANADA (RY) has a profitability rating of 4 / 10.
What is the financial health of ROYAL BANK OF CANADA (RY) stock?
The financial health rating of ROYAL BANK OF CANADA (RY) is 1 / 10.
How sustainable is the dividend of ROYAL BANK OF CANADA (RY) stock?
The dividend rating of ROYAL BANK OF CANADA (RY) is 8 / 10 and the dividend payout ratio is 44.29%.