ROYAL BANK OF CANADA (RY) Fundamental Analysis & Valuation

NYSE:RY • CA7800871021

Current stock price

158.21 USD
-1.98 (-1.24%)
At close:
158.21 USD
0 (0%)
After Hours:

This RY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. RY Profitability Analysis

1.1 Basic Checks

  • In the past year RY was profitable.
  • RY had a positive operating cash flow in the past year.
  • In the past 5 years RY has always been profitable.
  • RY had a positive operating cash flow in each of the past 5 years.
RY Yearly Net Income VS EBIT VS OCF VS FCFRY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

1.2 Ratios

  • RY has a Return On Assets (0.88%) which is in line with its industry peers.
  • The Return On Equity of RY (14.66%) is better than 91.58% of its industry peers.
Industry RankSector Rank
ROA 0.88%
ROE 14.66%
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
RY Yearly ROA, ROE, ROICRY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • RY has a Profit Margin of 30.22%. This is in the better half of the industry: RY outperforms 76.05% of its industry peers.
  • In the last couple of years the Profit Margin of RY has grown nicely.
  • The Operating Margin and Gross Margin are not available for RY so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 30.22%
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
RY Yearly Profit, Operating, Gross MarginsRY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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2

2. RY Health Analysis

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.
  • The debt/assets ratio for RY has been reduced compared to a year ago.
RY Yearly Shares OutstandingRY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
RY Yearly Total Debt VS Total AssetsRY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500B 1T 1.5T 2T

2.2 Solvency

  • RY has a debt to FCF ratio of 5.81. This is a neutral value as RY would need 5.81 years to pay back of all of its debts.
  • The Debt to FCF ratio of RY (5.81) is worse than 71.84% of its industry peers.
  • RY has a Debt/Equity ratio of 2.49. This is a high value indicating a heavy dependency on external financing.
  • RY's Debt to Equity ratio of 2.49 is on the low side compared to the rest of the industry. RY is outperformed by 90.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 5.81
Altman-Z N/A
ROIC/WACCN/A
WACC14.01%
RY Yearly LT Debt VS Equity VS FCFRY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
RY Yearly Current Assets VS Current LiabilitesRY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200B 400B 600B 800B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. RY Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.70% 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 11.93%.
  • Measured over the past years, RY shows a small growth in Revenue. The Revenue has been growing by 7.14% on average per year.
EPS 1Y (TTM)15.7%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%12.71%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%7.29%

3.2 Future

  • RY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.30% yearly.
  • RY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y13.34%
EPS Next 2Y11.52%
EPS Next 3Y11.3%
EPS Next 5YN/A
Revenue Next Year7.47%
Revenue Next 2Y6.01%
Revenue Next 3Y5.05%
Revenue Next 5Y3.85%

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.
RY Yearly Revenue VS EstimatesRY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B 80B
RY Yearly EPS VS EstimatesRY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

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4

4. RY Valuation Analysis

4.1 Price/Earnings Ratio

  • RY is valuated correctly with a Price/Earnings ratio of 14.70.
  • Based on the Price/Earnings ratio, RY is valued a bit more expensive than 74.47% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of RY to the average of the S&P500 Index (24.88), we can say RY is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 12.20, the valuation of RY can be described as correct.
  • 68.68% of the companies in the same industry are cheaper than RY, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, RY is valued a bit cheaper.
Industry RankSector Rank
PE 14.7
Fwd PE 12.2
RY Price Earnings VS Forward Price EarningsRY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, RY is valued cheaper than 91.58% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.12
EV/EBITDA N/A
RY Per share dataRY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)1.1
PEG (5Y)1.17
EPS Next 2Y11.52%
EPS Next 3Y11.3%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. RY Dividend Analysis

5.1 Amount

  • RY has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
  • RY's Dividend Yield is comparable with the industry average which is at 2.78.
  • Compared to an average S&P500 Dividend Yield of 1.90, RY pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.98%

5.2 History

  • On average, the dividend of RY grows each year by 7.08%, which is quite nice.
  • 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
RY Yearly Dividends per shareRY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • 43.88% 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.
DP43.88%
EPS Next 2Y11.52%
EPS Next 3Y11.3%
RY Yearly Income VS Free CF VS DividendRY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
RY Dividend Payout.RY Dividend Payout, showing the Payout Ratio.RY Dividend Payout.PayoutRetained Earnings

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RY Fundamentals: All Metrics, Ratios and Statistics

ROYAL BANK OF CANADA

NYSE:RY (3/27/2026, 8:04:00 PM)

After market: 158.21 0 (0%)

158.21

-1.98 (-1.24%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)02-26
Earnings (Next)05-27
Inst Owners50.67%
Inst Owner Change-3.52%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap221.13B
Revenue(TTM)67.83B
Net Income(TTM)20.50B
Analysts82.5
Price Target183.24 (15.82%)
Short Float %0.16%
Short Ratio1.64
Dividend
Industry RankSector Rank
Dividend Yield 2.98%
Yearly Dividend4.56
Dividend Growth(5Y)7.08%
DP43.88%
Div Incr Years8
Div Non Decr Years8
Ex-Date04-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.51%
Min EPS beat(2)3%
Max EPS beat(2)6.02%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-4.92%
Max EPS beat(4)12.29%
EPS beat(8)6
Avg EPS beat(8)4.12%
EPS beat(12)8
Avg EPS beat(12)2.39%
EPS beat(16)11
Avg EPS beat(16)2.12%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.34%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)2.86%
Revenue beat(8)4
Avg Revenue beat(8)0.52%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.82%
PT rev (1m)3.82%
PT rev (3m)5.59%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)1.55%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.93%
Valuation
Industry RankSector Rank
PE 14.7
Fwd PE 12.2
P/S 4.51
P/FCF 5.12
P/OCF 4.94
P/B 2.19
P/tB 2.7
EV/EBITDA N/A
EPS(TTM)10.76
EY6.8%
EPS(NY)12.97
Fwd EY8.2%
FCF(TTM)30.93
FCFY19.55%
OCF(TTM)32.04
OCFY20.25%
SpS35.08
BVpS72.3
TBVpS58.54
PEG (NY)1.1
PEG (5Y)1.17
Graham Number132.3
Profitability
Industry RankSector Rank
ROA 0.88%
ROE 14.66%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 30.22%
GM N/A
FCFM 88.17%
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-Score8
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 2.49
Debt/FCF 5.81
Debt/EBITDA N/A
Cap/Depr 71.61%
Cap/Sales 3.18%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 291.73%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC14.01%
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)15.7%
EPS 3Y8.81%
EPS 5Y12.61%
EPS Q2Q%12.71%
EPS Next Y13.34%
EPS Next 2Y11.52%
EPS Next 3Y11.3%
EPS Next 5YN/A
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.79%
Revenue growth 5Y7.14%
Sales Q2Q%7.29%
Revenue Next Year7.47%
Revenue Next 2Y6.01%
Revenue Next 3Y5.05%
Revenue Next 5Y3.85%
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 1Y1371.94%
FCF growth 3Y39.67%
FCF growth 5Y-17.21%
OCF growth 1Y842.13%
OCF growth 3Y36.02%
OCF growth 5Y-16.84%

ROYAL BANK OF CANADA / RY Fundamental Analysis 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 2 / 10.


How sustainable is the dividend of ROYAL BANK OF CANADA (RY) stock?

The dividend rating of ROYAL BANK OF CANADA (RY) is 7 / 10 and the dividend payout ratio is 43.88%.