ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RY - CA7800871021 - Common Stock
170.78 USD
+0.29 (+0.17%)
170 USD
-0.78 (-0.46%)
Overall RY gets a fundamental rating of 4 out of 10. We evaluated RY against 387 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.
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.
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 (0.85%) which is in line with its industry peers.
RY has a better Return On Equity (14.28%) than 91.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 14.28% | ||
| ROIC | N/A |
ROA(3y)0.77%
ROA(5y)0.81%
ROE(3y)13.1%
ROE(5y)13.93%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 29.83%, RY is doing good in the industry, outperforming 78.35% of the companies in the same industry.
RY's Profit Margin has improved 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) | 29.83% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-2.05%
PM growth 5Y4.74%
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.
Compared to 1 year ago, RY has less shares outstanding
The number of shares outstanding for RY has been reduced compared to 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 6.67, which is on the high side as it means it would take RY, 6.67 years of fcf income to pay off all of its debts.
RY's Debt to FCF ratio of 6.67 is on the low side compared to the rest of the industry. RY is outperformed by 75.52% of its industry peers.
RY has a Debt/Equity ratio of 2.53. This is a high value indicating a heavy dependency on external financing.
RY has a Debt to Equity ratio of 2.53. This is amonst the worse of the industry: RY underperforms 90.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.83%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.26% over the past year.
RY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.61% yearly.
RY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.15%.
The Revenue has been growing slightly by 7.14% on average over the past years.
EPS 1Y (TTM)19.26%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%25.41%
Revenue 1Y (TTM)16.15%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%14.16%
3.2 Future
The Earnings Per Share is expected to grow by 10.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.44% on average over the next years.
EPS Next Y11.61%
EPS Next 2Y11%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue Next Year6.48%
Revenue Next 2Y5.73%
Revenue Next 3Y4.7%
Revenue Next 5Y2.44%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.20, RY is valued correctly.
Based on the Price/Earnings ratio, RY is valued a bit more expensive than 71.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of RY to the average of the S&P500 Index (26.60), we can say RY is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.52, the valuation of RY can be described as correct.
Based on the Price/Forward Earnings ratio, RY is valued a bit more expensive than the industry average as 73.71% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of RY to the average of the S&P500 Index (23.23), we can say RY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
RY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RY is cheaper than 88.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.18 | ||
| 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)1.4
PEG (5Y)1.29
EPS Next 2Y11%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 2.80%.
Compared to an average industry Dividend Yield of 2.78, RY has a dividend in line with its industry peers.
RY's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
The dividend of RY is nicely growing with an annual growth rate of 7.08%!
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)7.08%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
RY pays out 44.29% of its income as dividend. 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.
DP44.29%
EPS Next 2Y11%
EPS Next 3Y10.3%
170.78
+0.29 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.22%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap239.11B
Revenue(TTM)66.61B
Net Income(TTM)19.87B
Analysts81.74
Price Target173.54 (1.62%)
Short Float %0.39%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend4.57
Dividend Growth(5Y)7.08%
DP44.29%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.02%
Max EPS beat(2)12.29%
EPS beat(4)3
Avg EPS beat(4)5.29%
Min EPS beat(4)-4.92%
Max EPS beat(4)12.29%
EPS beat(8)5
Avg EPS beat(8)3.59%
EPS beat(12)8
Avg EPS beat(12)2.35%
EPS beat(16)11
Avg EPS beat(16)2.06%
Revenue beat(2)2
Avg Revenue beat(2)1.6%
Min Revenue beat(2)0.34%
Max Revenue beat(2)2.86%
Revenue beat(4)3
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)4.2%
Revenue beat(8)4
Avg Revenue beat(8)0.19%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.53%
PT rev (1m)11.58%
PT rev (3m)11.82%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)2.47%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.69%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 14.52 | ||
| P/S | 4.92 | ||
| P/FCF | 6.18 | ||
| P/OCF | 5.93 | ||
| P/B | 2.35 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.54
EY6.17%
EPS(NY)11.76
Fwd EY6.89%
FCF(TTM)27.64
FCFY16.18%
OCF(TTM)28.81
OCFY16.87%
SpS34.74
BVpS72.56
TBVpS58.57
PEG (NY)1.4
PEG (5Y)1.29
Graham Number131.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 14.28% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 29.83% | ||
| GM | N/A | ||
| FCFM | 79.54% |
ROA(3y)0.77%
ROA(5y)0.81%
ROE(3y)13.1%
ROE(5y)13.93%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-2.05%
PM growth 5Y4.74%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 72.85% | ||
| Cap/Sales | 3.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 266.65% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC13.83%
ROIC/WACCN/A
Cap/Depr(3y)81.48%
Cap/Depr(5y)84.61%
Cap/Sales(3y)4.22%
Cap/Sales(5y)4.43%
Profit Quality(3y)186.75%
Profit Quality(5y)211.66%
High Growth Momentum
Growth
EPS 1Y (TTM)19.26%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%25.41%
EPS Next Y11.61%
EPS Next 2Y11%
EPS Next 3Y10.3%
EPS Next 5YN/A
Revenue 1Y (TTM)16.15%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%14.16%
Revenue Next Year6.48%
Revenue Next 2Y5.73%
Revenue Next 3Y4.7%
Revenue Next 5Y2.44%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-13.45%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y153.98%
FCF growth 3Y39.67%
FCF growth 5Y-17.21%
OCF growth 1Y138.65%
OCF growth 3Y36.02%
OCF growth 5Y-16.84%
ROYAL BANK OF CANADA / RY FAQ
What is the ChartMill fundamental rating of ROYAL BANK OF CANADA (RY) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RY.
Can you provide the valuation status for ROYAL BANK OF CANADA?
ChartMill assigns a valuation rating of 4 / 10 to ROYAL BANK OF CANADA (RY). This can be considered as Fairly Valued.
How profitable is ROYAL BANK OF CANADA (RY) stock?
ROYAL BANK OF CANADA (RY) has a profitability rating of 4 / 10.
What is the financial health of ROYAL BANK OF CANADA (RY) stock?
The financial health rating of ROYAL BANK OF CANADA (RY) is 1 / 10.
How sustainable is the dividend of ROYAL BANK OF CANADA (RY) stock?
The dividend rating of ROYAL BANK OF CANADA (RY) is 6 / 10 and the dividend payout ratio is 44.29%.