ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis
USA - NYSE:RY - CA7800871021 - Common Stock
147.53 USD
+0.64 (+0.44%)
Overall RY gets a fundamental rating of 4 out of 10. We evaluated RY against 388 industry peers in the Banks industry. While RY is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Each year in the past 5 years RY has been profitable.
In the past 5 years RY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RY (0.84%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 13.80%, RY belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
| 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 77.84% of its industry peers.
RY's Profit Margin has been stable 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) | 29.01% | ||
| 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
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.
The debt/assets ratio for RY has been reduced compared to a year ago.
2.2 Solvency
RY has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as RY would need 3.86 years to pay back of all of its debts.
RY has a worse Debt to FCF ratio (3.86) than 62.89% 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's Debt to Equity ratio of 2.41 is on the low side compared to the rest of the industry. RY is outperformed by 89.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.15%
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 15.58% over the past year.
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%.
RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.51% yearly.
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
Based on estimates for the next years, RY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.00% on average per year.
The Revenue is expected to grow by 4.83% on average over the next years.
EPS Next Y19.05%
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 5Y4.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.15, RY is valued correctly.
RY's Price/Earnings ratio is a bit more expensive when compared to the industry. RY is more expensive than 71.13% of the companies in the same industry.
RY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
RY is valuated correctly with a Price/Forward Earnings ratio of 13.36.
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 70.88% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RY to the average of the S&P500 Index (33.61), we can say RY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RY indicates a rather cheap valuation: RY is cheaper than 95.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.42 | ||
| 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)0.8
PEG (5Y)2.38
EPS Next 2Y13.07%
EPS Next 3Y12%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.00%.
RY's Dividend Yield is comparable with the industry average which is at 3.38.
RY's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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.
RY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.34%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
46.12% 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.
DP46.12%
EPS Next 2Y13.07%
EPS Next 3Y12%
NYSE:RY (11/11/2025, 10:23:11 AM)
147.53
+0.64 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.06%
Inst Owner Change-0.26%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap207.28B
Revenue(TTM)64.47B
Net Income(TTM)18.70B
Analysts82.61
Price Target153.57 (4.09%)
Short Float %0.62%
Short Ratio8.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend3.34
Dividend Growth(5Y)2.34%
DP46.12%
Div Incr Years8
Div Non Decr Years8
Ex-Date
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)-0.34%
PT rev (3m)8.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)4.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 13.36 | ||
| P/S | 4.5 | ||
| P/FCF | 3.42 | ||
| P/OCF | 3.33 | ||
| P/B | 2.14 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.74
EY6.6%
EPS(NY)11.04
Fwd EY7.48%
FCF(TTM)43.08
FCFY29.2%
OCF(TTM)44.28
OCFY30.01%
SpS32.75
BVpS68.86
TBVpS55.28
PEG (NY)0.8
PEG (5Y)2.38
Graham Number122.85
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
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-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
WACC14.15%
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 Y19.05%
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 5Y4.83%
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 FAQ
What is the ChartMill fundamental rating of ROYAL BANK OF CANADA (RY) stock?
ChartMill assigns a fundamental rating of 4 / 10 to RY.
What is the valuation status for RY stock?
ChartMill assigns a valuation rating of 5 / 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 19.05% 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 46.12%.