ROYAL BANK OF CANADA (RY)
CA7800871021 - Common Stock
We assign a fundamental rating of 4 out of 10 to RY. RY was compared to 411 industry peers in the Banks industry. RY has an average financial health and profitability rating. RY does not seem to be growing, but still is valued expensively. RY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RY was profitable.
In the past year RY had a positive cash flow from operations.
In the past 5 years RY has always been profitable.
In the past 5 years RY always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.76%, RY perfoms like the industry average, outperforming 41.36% of the companies in the same industry.
RY's Return On Equity of 12.87% is amongst the best of the industry. RY outperforms 82.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 12.87% | ||
| ROIC | N/A |
ROA(3y)0.82%
ROA(5y)0.81%
ROE(3y)14.27%
ROE(5y)14.15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of RY (27.47%) is better than 67.88% of its industry peers.
In the last couple of years the Profit Margin of RY has declined.
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) | 27.47% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y3.26%
PM growth 5Y-1.75%
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.
The number of shares outstanding for RY has been increased compared to 1 year ago.
RY has less shares outstanding than it did 5 years ago.
RY has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of RY is 93.78, which is on the high side as it means it would take RY, 93.78 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 93.78, RY is not doing good in the industry: 89.29% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.27 is on the high side and indicates that RY has dependencies on debt financing.
RY has a Debt to Equity ratio of 3.27. This is amonst the worse of the industry: RY underperforms 95.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 93.78 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.74%
2.3 Liquidity
RY has a Current Ratio of 2.06. This indicates that RY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.06, RY belongs to the best of the industry, outperforming 99.51% of the companies in the same industry.
RY has a Quick Ratio of 2.06. This indicates that RY is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of RY (2.06) is better than 99.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
RY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.71%.
RY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.69% yearly.
RY shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
The Revenue has been growing slightly by 5.68% on average over the past years.
EPS 1Y (TTM)-2.71%
EPS 3Y12.57%
EPS 5Y5.69%
EPS growth Q2Q-8.06%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y5.96%
Revenue growth 5Y5.68%
Revenue growth Q2Q-10.66%
3.2 Future
Based on estimates for the next years, RY will show a small growth in Earnings Per Share. The EPS will grow by 5.30% on average per year.
RY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.16% yearly.
EPS Next Y2.47%
EPS Next 2Y4.65%
EPS Next 3Y5.3%
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y4.63%
Revenue Next 3Y4.16%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
RY is valuated correctly with a Price/Earnings ratio of 12.07.
68.61% of the companies in the same industry are cheaper than RY, based on the Price/Earnings ratio.
RY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.92.
With a Price/Forward Earnings ratio of 10.78, the valuation of RY can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RY is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RY to the average of the S&P500 Index (21.49), we can say RY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
85.40% of the companies in the same industry are cheaper than RY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.52 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RY does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.88
PEG (5Y)2.12
EPS Next 2Y4.65%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.13%, RY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.81, RY pays a bit more dividend than its industry peers.
RY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
5.2 History
The dividend of RY has a limited annual growth rate of 0.44%.
RY has paid a dividend for at least 10 years, which is 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)0.44%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
33.04% of the earnings are spent on dividend by RY. This is a low number and sustainable payout ratio.
The dividend of RY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.04%
EPS Next 2Y4.65%
EPS Next 3Y5.3%
ROYAL BANK OF CANADA
NYSE:RY (4/26/2024, 6:16:39 PM)
After market: 98.16 0 (0%)98.16
+0.48 (+0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap138.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 10.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.88
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 12.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 27.47% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.71%
EPS 3Y12.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.87%
Revenue growth 3Y5.96%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y