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ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis

NYSE:RY - New York Stock Exchange, Inc. - CA7800871021 - Common Stock - Currency: USD

128.43  +1.91 (+1.51%)

After market: 128.43 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to RY. RY was compared to 396 industry peers in the Banks industry. There are concerns on the financial health of RY while its profitability can be described as average. RY has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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4

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.
RY Yearly Net Income VS EBIT VS OCF VS FCFRY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

1.2 Ratios

RY has a Return On Assets of 0.79%. This is comparable to the rest of the industry: RY outperforms 46.46% of its industry peers.
RY's Return On Equity of 13.06% is amongst the best of the industry. RY outperforms 87.37% of its industry peers.
Industry RankSector Rank
ROA 0.79%
ROE 13.06%
ROIC N/A
ROA(3y)0.76%
ROA(5y)0.78%
ROE(3y)13.11%
ROE(5y)13.64%
ROIC(3y)N/A
ROIC(5y)N/A
RY Yearly ROA, ROE, ROICRY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

RY has a Profit Margin of 28.71%. This is in the better half of the industry: RY outperforms 78.54% of its industry peers.
In the last couple of years the Profit Margin of RY has remained more or less at the same level.
RY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 28.71%
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
RY Yearly Profit, Operating, Gross MarginsRY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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1

2. Health

2.1 Basic Checks

RY does not have a ROIC to compare to the WACC, probably because it is not profitable.
RY has more shares outstanding than it did 1 year ago.
RY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RY has an improved debt to assets ratio.
RY Yearly Shares OutstandingRY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B
RY Yearly Total Debt VS Total AssetsRY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500B 1T 1.5T 2T

2.2 Solvency

RY has a debt to FCF ratio of 6.24. This is a slightly negative value and a sign of low solvency as RY would need 6.24 years to pay back of all of its debts.
RY has a worse Debt to FCF ratio (6.24) than 73.74% of its industry peers.
RY has a Debt/Equity ratio of 2.51. This is a high value indicating a heavy dependency on external financing.
RY has a Debt to Equity ratio of 2.51. This is amonst the worse of the industry: RY underperforms 92.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.51
Debt/FCF 6.24
Altman-Z N/A
ROIC/WACCN/A
WACC13.66%
RY Yearly LT Debt VS Equity VS FCFRY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
RY Yearly Current Assets VS Current LiabilitesRY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200B 400B 600B 800B

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5

3. Growth

3.1 Past

RY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.74%, 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 11.15% in the last year.
The Revenue has been growing slightly by 4.51% on average over the past years.
EPS 1Y (TTM)15.74%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%27.02%
Revenue 1Y (TTM)11.15%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%24.13%

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 9.87% yearly.
Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
EPS Next Y14.44%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
EPS Next 5YN/A
Revenue Next Year12.21%
Revenue Next 2Y7.66%
Revenue Next 3Y6.1%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
RY Yearly Revenue VS EstimatesRY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20B 40B 60B
RY Yearly EPS VS EstimatesRY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.84, RY is valued correctly.
Based on the Price/Earnings ratio, RY is valued a bit more expensive than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, RY is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.00, which indicates a very decent valuation of RY.
67.42% of the companies in the same industry are cheaper than RY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RY to the average of the S&P500 Index (21.76), we can say RY is valued slightly cheaper.
Industry RankSector Rank
PE 13.84
Fwd PE 12
RY Price Earnings VS Forward Price EarningsRY 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 cheaper than 92.93% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.71
EV/EBITDA N/A
RY Per share dataRY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)0.96
PEG (5Y)2.18
EPS Next 2Y10.75%
EPS Next 3Y9.87%

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6

5. Dividend

5.1 Amount

RY has a Yearly Dividend Yield of 3.40%.
Compared to an average industry Dividend Yield of 3.34, RY pays a bit more dividend than its industry peers.
RY's Dividend Yield is a higher than the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 3.4%

5.2 History

The dividend of RY has a limited annual growth rate of 2.34%.
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)2.34%
Div Incr Years8
Div Non Decr Years8
RY Yearly Dividends per shareRY Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

5.3 Sustainability

43.10% 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.
DP43.1%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
RY Yearly Income VS Free CF VS DividendRY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B
RY Dividend Payout.RY Dividend Payout, showing the Payout Ratio.RY Dividend Payout.PayoutRetained Earnings

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ROYAL BANK OF CANADA

NYSE:RY (5/23/2025, 8:54:09 PM)

After market: 128.43 0 (0%)

128.43

+1.91 (+1.51%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-27 2025-02-27/bmo
Earnings (Next)05-29 2025-05-29/bmo
Inst Owners51.32%
Inst Owner Change-0.14%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap181.65B
Analysts84.17
Price Target131.39 (2.3%)
Short Float %1.37%
Short Ratio14.38
Dividend
Industry RankSector Rank
Dividend Yield 3.4%
Yearly Dividend3.37
Dividend Growth(5Y)2.34%
DP43.1%
Div Incr Years8
Div Non Decr Years8
Ex-Date04-24 2025-04-24 (1.48)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.43%
Min EPS beat(2)-0.92%
Max EPS beat(2)7.78%
EPS beat(4)3
Avg EPS beat(4)4.14%
Min EPS beat(4)-0.92%
Max EPS beat(4)7.78%
EPS beat(8)5
Avg EPS beat(8)1.54%
EPS beat(12)8
Avg EPS beat(12)1.47%
EPS beat(16)11
Avg EPS beat(16)1.87%
Revenue beat(2)1
Avg Revenue beat(2)1.99%
Min Revenue beat(2)-0.22%
Max Revenue beat(2)4.2%
Revenue beat(4)2
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)4.2%
Revenue beat(8)4
Avg Revenue beat(8)0.46%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.46%
PT rev (1m)2.62%
PT rev (3m)3.79%
EPS NQ rev (1m)-2.11%
EPS NQ rev (3m)-2.74%
EPS NY rev (1m)0%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)4.63%
Valuation
Industry RankSector Rank
PE 13.84
Fwd PE 12
P/S 4.16
P/FCF 4.71
P/OCF 4.5
P/B 1.89
P/tB 2.38
EV/EBITDA N/A
EPS(TTM)9.28
EY7.23%
EPS(NY)10.7
Fwd EY8.33%
FCF(TTM)27.26
FCFY21.23%
OCF(TTM)28.52
OCFY22.21%
SpS30.9
BVpS67.91
TBVpS53.99
PEG (NY)0.96
PEG (5Y)2.18
Profitability
Industry RankSector Rank
ROA 0.79%
ROE 13.06%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 28.71%
GM N/A
FCFM 88.22%
ROA(3y)0.76%
ROA(5y)0.78%
ROE(3y)13.11%
ROE(5y)13.64%
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-Score7
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 2.51
Debt/FCF 6.24
Debt/EBITDA N/A
Cap/Depr 80.46%
Cap/Sales 4.09%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 307.28%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC13.66%
ROIC/WACCN/A
Cap/Depr(3y)88.62%
Cap/Depr(5y)89.9%
Cap/Sales(3y)4.65%
Cap/Sales(5y)4.78%
Profit Quality(3y)138.62%
Profit Quality(5y)401.74%
High Growth Momentum
Growth
EPS 1Y (TTM)15.74%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%27.02%
EPS Next Y14.44%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
EPS Next 5YN/A
Revenue 1Y (TTM)11.15%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%24.13%
Revenue Next Year12.21%
Revenue Next 2Y7.66%
Revenue Next 3Y6.1%
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 1Y85.88%
FCF growth 3Y-29.23%
FCF growth 5Y11.68%
OCF growth 1Y78.33%
OCF growth 3Y-27.63%
OCF growth 5Y10.16%