RY Fundamental Analysis - ROYAL BANK OF CANADA

Fundamental Rating

RY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 392 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 is not valued too expensively and it also shows a decent growth rate. RY also has an excellent dividend rating.

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1. Profitability

1.1 Basic Checks

In the past year RY was profitable.

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

RY had positive earnings in each of the past 5 years.

In the past 5 years RY always reported a positive cash flow from operatings.

1.2 Ratios

RY has a Return On Assets of 0.84%. This is comparable to the rest of the industry: RY outperforms 49.23% of its industry peers.

RY has a Return On Equity of 13.80%. This is amongst the best in the industry. RY outperforms 90.82% 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

The Profit Margin of RY (29.01%) is better than 78.32% of its industry peers.

RY's Profit Margin has been stable 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)	29.01%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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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

Compared to 5 years ago, RY has less shares outstanding

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 3.86. This is a good value and a sign of high solvency as RY would need 3.86 years to pay back of all of its debts.

The Debt to FCF ratio of RY (3.86) is worse than 62.24% 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.

With a Debt to Equity ratio value of 2.41, RY is not doing good in the industry: 89.54% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	2.41
Debt/FCF	3.86
Altman-Z	N/A

ROIC/WACCN/A

WACC14.5%

2.3 Liquidity

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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

RY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.58%, which is quite good.

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

RY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.58% yearly.

The Revenue is expected to grow by 4.35% on average over the next years.

EPS Next Y13.24%

EPS Next 2Y10.55%

EPS Next 3Y10.58%

EPS Next 5YN/A

Revenue Next Year15.03%

Revenue Next 2Y8.87%

Revenue Next 3Y6.95%

Revenue Next 5Y4.35%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.87, the valuation of RY can be described as correct.

62.76% 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 27.38, which is the current average of the S&P500 Index.

With a Price/Forward Earnings ratio of 13.73, RY is valued correctly.

RY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RY is more expensive than 70.41% of the companies in the same industry.

RY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.

		Industry Rank	Sector Rank
PE	14.87
Fwd PE	13.73

4.2 Price Multiples

RY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RY is cheaper than 95.66% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	3.36
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)1.12

PEG (5Y)2.34

EPS Next 2Y10.55%

EPS Next 3Y10.58%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.88%, RY is a good candidate for dividend investing.

RY's Dividend Yield is a higher than the industry average which is at 3.73.

RY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.

		Industry Rank	Sector Rank
Dividend Yield	4.88%

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

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 2Y10.55%

EPS Next 3Y10.58%

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ROYAL BANK OF CANADA

NYSE:RY (9/19/2025, 8:04:00 PM)

After market: 147 -0.26 (-0.18%)

147.26

+1.1 (+0.75%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

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

Earnings (Next)12-02 2025-12-02/amc

Inst Owners49.26%

Inst Owner Change-1.33%

Ins Owners0.01%

Ins Owner ChangeN/A

Market Cap206.90B

Analysts83.48

Price Target155.2 (5.39%)

Short Float %0.47%

Short Ratio5.87

Dividend

		Industry Rank	Sector Rank
Dividend Yield	4.88%

Yearly Dividend3.41

Dividend Growth(5Y)2.34%

DP46.12%

Div Incr Years8

Div Non Decr Years8

Ex-Date10-27 2025-10-27 (1.54)

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)9.56%

PT rev (3m)15.51%

EPS NQ rev (1m)5.15%

EPS NQ rev (3m)6.17%

EPS NY rev (1m)-1.05%

EPS NY rev (3m)-1.05%

Revenue NQ rev (1m)1.98%

Revenue NQ rev (3m)4.35%

Revenue NY rev (1m)2.63%

Revenue NY rev (3m)2.52%

Valuation

		Industry Rank	Sector Rank
PE	14.87
Fwd PE	13.73
P/S	4.42
P/FCF	3.36
P/OCF	3.27
P/B	2.1
P/tB	2.62
EV/EBITDA	N/A

EPS(TTM)9.9

EY6.72%

EPS(NY)10.73

Fwd EY7.29%

FCF(TTM)43.8

FCFY29.74%

OCF(TTM)45.02

OCFY30.57%

SpS33.29

BVpS70.01

TBVpS56.2

PEG (NY)1.12

PEG (5Y)2.34

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

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	2.41
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

WACC14.5%

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 Y13.24%

EPS Next 2Y10.55%

EPS Next 3Y10.58%

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 5Y4.35%

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) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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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

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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