ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RY - CA7800871021 - Common Stock
162.48 USD
+1.92 (+1.2%)
162.48 USD
0 (0%)
Overall RY gets a fundamental rating of 3 out of 10. We evaluated RY against 387 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.
1. Profitability
1.1 Basic Checks
RY had positive earnings in the past year.
RY had a positive operating cash flow in the past year.
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
RY has a Return On Assets (0.85%) which is in line with its industry peers.
RY's Return On Equity of 14.28% is amongst the best of the industry. RY outperforms 91.73% 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
RY has a better Profit Margin (29.83%) than 79.07% of its industry peers.
RY's Profit Margin has improved 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) | 29.83% | ||
| 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.
RY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RY has been reduced compared to 5 years ago.
RY has a better debt/assets ratio than last year.
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.
With a Debt to FCF ratio value of 6.67, RY is not doing good in the industry: 75.97% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.53 is on the high side and indicates that RY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.53, RY is doing worse than 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.87%
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 19.26%, which is quite good.
Measured over the past years, RY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.61% on average per year.
Looking at the last year, RY shows a quite strong growth in Revenue. The Revenue has grown by 16.15% in the last year.
RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.14% yearly.
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 9.66% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.45% on average over the next years.
EPS Next Y8.92%
EPS Next 2Y9.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.51%
Revenue Next 2Y3.76%
Revenue Next 3Y2.12%
Revenue Next 5Y2.45%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 15.70 indicates a correct valuation of RY.
Based on the Price/Earnings ratio, RY is valued a bit more expensive than 72.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. RY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.41, which indicates a correct valuation of RY.
Based on the Price/Forward Earnings ratio, RY is valued a bit more expensive than 73.13% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RY to the average of the S&P500 Index (23.69), we can say RY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 14.41 |
4.2 Price Multiples
RY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RY is cheaper than 89.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| 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)1.76
PEG (5Y)1.25
EPS Next 2Y9.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
RY's Dividend Yield is comparable with the industry average which is at 3.11.
RY's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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 2Y9.66%
EPS Next 3YN/A
162.48
+1.92 (+1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.06%
Inst Owner Change1.78%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap227.49B
Revenue(TTM)66.61B
Net Income(TTM)19.87B
Analysts81.74
Price Target169.37 (4.24%)
Short Float %0.3%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend4.49
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)9.63%
PT rev (3m)18.78%
EPS NQ rev (1m)2.46%
EPS NQ rev (3m)4.13%
EPS NY rev (1m)1.6%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)3.05%
Revenue NQ rev (3m)3.16%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 14.41 | ||
| P/S | 4.76 | ||
| P/FCF | 5.98 | ||
| P/OCF | 5.74 | ||
| P/B | 2.28 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.35
EY6.37%
EPS(NY)11.28
Fwd EY6.94%
FCF(TTM)27.15
FCFY16.71%
OCF(TTM)28.3
OCFY17.42%
SpS34.13
BVpS71.28
TBVpS57.54
PEG (NY)1.76
PEG (5Y)1.25
Graham Number128.84
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
WACC13.87%
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 Y8.92%
EPS Next 2Y9.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.15%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%14.16%
Revenue Next Year3.51%
Revenue Next 2Y3.76%
Revenue Next 3Y2.12%
Revenue Next 5Y2.45%
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 3 / 10 to RY.
What is the valuation status for RY stock?
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.
Can you provide the expected EPS growth for RY stock?
The Earnings per Share (EPS) of ROYAL BANK OF CANADA (RY) is expected to grow by 8.92% in the next year.
Can you provide the dividend sustainability for RY stock?
The dividend rating of ROYAL BANK OF CANADA (RY) is 6 / 10 and the dividend payout ratio is 44.29%.