RY Fundamental Analysis - ROYAL BANK OF CANADA

Fundamental Rating

Taking everything into account, RY scores 4 out of 10 in our fundamental rating. RY was compared to 391 industry peers in the Banks industry. RY has a medium profitability rating, but doesn't score so well on its financial health evaluation. RY has a correct valuation and a medium growth rate.

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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.

RY had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.84%, RY is in line with its industry, outperforming 49.36% of the companies in the same industry.

RY has a better Return On Equity (13.80%) than 91.56% 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

RY's Profit Margin of 29.01% is fine compared to the rest of the industry. RY outperforms 78.26% of its industry peers.

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)	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.

RY has more shares outstanding than it did 1 year ago.

The number of shares outstanding for RY has been reduced compared to 5 years ago.

The debt/assets ratio for RY has been reduced compared to a year ago.

2.2 Solvency

The Debt to FCF ratio of RY is 3.86, which is a good value as it means it would take RY, 3.86 years of fcf income to pay off all of its debts.

RY has a Debt to FCF ratio of 3.86. This is in the lower half of the industry: RY underperforms 62.92% 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.

RY has a worse Debt to Equity ratio (2.41) than 90.03% of its industry peers.

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

ROIC/WACCN/A

WACC14.34%

2.3 Liquidity

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

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WACC

Debt/Equity

How to determine the health of a company

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.

The Earnings Per Share has been growing slightly by 6.36% on average over the past years.

RY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.31%.

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

The Earnings Per Share is expected to grow by 12.00% 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 4.68% on average per year.

EPS Next Y19.43%

EPS Next 2Y13.07%

EPS Next 3Y12%

EPS Next 5YN/A

Revenue Next Year15.03%

Revenue Next 2Y8.87%

Revenue Next 3Y6.95%

Revenue Next 5Y4.68%

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

RY is valuated correctly with a Price/Earnings ratio of 15.01.

Compared to the rest of the industry, the Price/Earnings ratio of RY indicates a slightly more expensive valuation: RY is more expensive than 70.33% of the companies listed in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 27.40, RY is valued a bit cheaper.

A Price/Forward Earnings ratio of 13.24 indicates a correct valuation of RY.

RY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RY is more expensive than 71.10% of the companies in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, RY is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	15.01
Fwd PE	13.24

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, RY is valued cheaper than 95.40% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	3.39
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)0.77

PEG (5Y)2.36

EPS Next 2Y13.07%

EPS Next 3Y12%

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5. Dividend

5.1 Amount

RY has a Yearly Dividend Yield of 3.02%.

RY's Dividend Yield is comparable with the industry average which is at 3.56.

Compared to an average S&P500 Dividend Yield of 2.38, RY pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	3.02%

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

RY pays out 46.12% of its income as dividend. 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 2Y13.07%

EPS Next 3Y12%

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ROYAL BANK OF CANADA

NYSE:RY (10/17/2025, 7:00:00 PM)

After market: 145.79 0 (0%)

145.79

+0.48 (+0.33%)

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 Owners49.06%

Inst Owner Change0%

Ins Owners0.01%

Ins Owner ChangeN/A

Market Cap204.83B

Analysts82.61

Price Target154.09 (5.69%)

Short Float %0.33%

Short Ratio4.24

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.02%

Yearly Dividend3.36

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)8.07%

PT rev (3m)13.33%

EPS NQ rev (1m)0.4%

EPS NQ rev (3m)5.69%

EPS NY rev (1m)5.47%

EPS NY rev (3m)4.36%

Revenue NQ rev (1m)0.24%

Revenue NQ rev (3m)2.32%

Revenue NY rev (1m)0%

Revenue NY rev (3m)2.52%

Valuation

		Industry Rank	Sector Rank
PE	15.01
Fwd PE	13.24
P/S	4.46
P/FCF	3.39
P/OCF	3.3
P/B	2.12
P/tB	2.65
EV/EBITDA	N/A

EPS(TTM)9.71

EY6.66%

EPS(NY)11.01

Fwd EY7.55%

FCF(TTM)42.95

FCFY29.46%

OCF(TTM)44.15

OCFY30.28%

SpS32.65

BVpS68.66

TBVpS55.12

PEG (NY)0.77

PEG (5Y)2.36

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

WACC14.34%

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 Y19.43%

EPS Next 2Y13.07%

EPS Next 3Y12%

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 5Y4.68%

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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