ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis
NYSE:RY - New York Stock Exchange, Inc. - CA7800871021 - Common Stock - Currency: USD
RY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 392 industry peers in the Banks industry. There are concerns on the financial health of RY while its profitability can be described as average. RY is not valued too expensively and it also shows a decent growth rate.
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.
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 0.79%, RY perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
RY has a Return On Equity of 13.43%. This is amongst the best in the industry. RY outperforms 88.52% 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 77.81% of the companies in the same industry.
RY's Profit Margin has been stable in the last couple of years.
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) | 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
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.
2.2 Solvency
The Debt to FCF ratio of RY is 4.34, which is a neutral value as it means it would take RY, 4.34 years of fcf income to pay off all of its debts.
RY has a Debt to FCF ratio of 4.34. This is in the lower half of the industry: RY underperforms 67.09% 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.
RY has a Debt to Equity ratio of 2.57. This is amonst the worse of the industry: RY underperforms 92.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | 4.34 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.18%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.75%, which is quite good.
RY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
Looking at the last year, RY shows a quite strong growth in Revenue. The Revenue has grown by 16.54% in the last year.
The Revenue has been growing slightly by 4.51% on average over the past years.
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
The Earnings Per Share is expected to grow by 9.87% on average over the next years. This is quite good.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.74 indicates a correct valuation of RY.
Based on the Price/Earnings ratio, RY is valued a bit more expensive than the industry average as 63.52% 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 27.24.
RY is valuated correctly with a Price/Forward Earnings ratio of 12.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RY indicates a slightly more expensive valuation: RY is more expensive than 67.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, RY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RY is valued cheaply inside the industry as 95.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.95
PEG (5Y)2.16
EPS Next 2Y10.75%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.52%.
RY's Dividend Yield is a higher than the industry average which is at 3.51.
RY's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| 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 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
5.3 Sustainability
47.48% 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.
DP47.48%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
NYSE:RY (8/5/2025, 12:23:32 PM)
130.42
+0.5 (+0.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.26%
Inst Owner Change-0.06%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap183.96B
Analysts83.33
Price Target140.95 (8.07%)
Short Float %0.92%
Short Ratio11.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend3.4
Dividend Growth(5Y)2.34%
DP47.48%
Div Incr Years8
Div Non Decr Years8
Ex-Date
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)3.67%
PT rev (3m)6.72%
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 | 13.74 | ||
| Fwd PE | 12.11 | ||
| P/S | 4.08 | ||
| P/FCF | 3.21 | ||
| P/OCF | 3.11 | ||
| P/B | 1.91 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.49
EY7.28%
EPS(NY)10.77
Fwd EY8.26%
FCF(TTM)40.57
FCFY31.11%
OCF(TTM)41.88
OCFY32.11%
SpS31.96
BVpS68.15
TBVpS54.35
PEG (NY)0.95
PEG (5Y)2.16
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
WACC14.18%
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%