ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis
NYSE:RY - New York Stock Exchange, Inc. - CA7800871021 - Common Stock - Currency: USD
Overall RY gets a fundamental rating of 4 out of 10. We evaluated RY against 398 industry peers in the Banks industry. There are concerns on the financial health of RY while its profitability can be described as average. RY is not valued too expensively and it also shows a decent growth rate.
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
With a Return On Assets value of 0.79%, RY perfoms like the industry average, outperforming 47.99% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.06%, RY belongs to the top of the industry, outperforming 86.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 13.06% | ||
| ROIC | N/A |
ROA(3y)0.76%
ROA(5y)0.78%
ROE(3y)13.11%
ROE(5y)13.64%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RY's Profit Margin of 28.71% is fine compared to the rest of the industry. RY outperforms 79.15% of its industry peers.
In the last couple of years the Profit Margin of RY has remained more or less at the same level.
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) | 28.71% | ||
| 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.
The number of shares outstanding for RY has been increased compared to 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 6.24, which is on the high side as it means it would take RY, 6.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RY (6.24) is worse than 70.60% of its industry peers.
A Debt/Equity ratio of 2.51 is on the high side and indicates that RY has dependencies on debt financing.
With a Debt to Equity ratio value of 2.51, RY is not doing good in the industry: 92.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.51 | ||
| Debt/FCF | 6.24 | ||
| 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 15.74% over the past year.
The Earnings Per Share has been growing slightly by 6.36% on average over the past years.
The Revenue has grown by 11.15% in the past year. This is quite good.
The Revenue has been growing slightly by 4.51% on average over the past years.
EPS 1Y (TTM)15.74%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%27.02%
Revenue 1Y (TTM)11.15%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%24.13%
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 9.87% on average per year.
Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 5.49% on average per year.
EPS Next Y14.44%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
EPS Next 5YN/A
Revenue Next Year11.68%
Revenue Next 2Y7.47%
Revenue Next 3Y5.49%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.40 indicates a correct valuation of RY.
RY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. RY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.76 indicates a reasonable valuation of RY.
The rest of the industry has a similar Price/Forward Earnings ratio as RY.
When comparing the Price/Forward Earnings ratio of RY to the average of the S&P500 Index (21.32), we can say RY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
RY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RY is cheaper than 93.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.86
PEG (5Y)1.95
EPS Next 2Y10.75%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.68%, RY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.66, 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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 43.10% 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.
DP43.1%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
NYSE:RY (4/21/2025, 1:12:05 PM)
114.97
-1.27 (-1.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners51.32%
Inst Owner Change0.09%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap162.61B
Analysts83.33
Price Target128.04 (11.37%)
Short Float %0.46%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend3.4
Dividend Growth(5Y)2.34%
DP43.1%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.43%
Min EPS beat(2)-0.92%
Max EPS beat(2)7.78%
EPS beat(4)3
Avg EPS beat(4)4.14%
Min EPS beat(4)-0.92%
Max EPS beat(4)7.78%
EPS beat(8)5
Avg EPS beat(8)1.54%
EPS beat(12)8
Avg EPS beat(12)1.47%
EPS beat(16)11
Avg EPS beat(16)1.87%
Revenue beat(2)1
Avg Revenue beat(2)1.99%
Min Revenue beat(2)-0.22%
Max Revenue beat(2)4.2%
Revenue beat(4)2
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)4.2%
Revenue beat(8)4
Avg Revenue beat(8)0.46%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.46%
PT rev (1m)1.95%
PT rev (3m)1.14%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)0.8%
EPS NY rev (1m)3.23%
EPS NY rev (3m)3.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 10.76 | ||
| P/S | 3.73 | ||
| P/FCF | 4.22 | ||
| P/OCF | 4.04 | ||
| P/B | 1.7 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.27
EY8.06%
EPS(NY)10.69
Fwd EY9.3%
FCF(TTM)27.22
FCFY23.68%
OCF(TTM)28.48
OCFY24.77%
SpS30.86
BVpS67.81
TBVpS53.91
PEG (NY)0.86
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 13.06% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 28.71% | ||
| GM | N/A | ||
| FCFM | 88.22% |
ROA(3y)0.76%
ROA(5y)0.78%
ROE(3y)13.11%
ROE(5y)13.64%
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-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.51 | ||
| Debt/FCF | 6.24 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 80.46% | ||
| Cap/Sales | 4.09% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 307.28% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC13.83%
ROIC/WACCN/A
Cap/Depr(3y)88.62%
Cap/Depr(5y)89.9%
Cap/Sales(3y)4.65%
Cap/Sales(5y)4.78%
Profit Quality(3y)138.62%
Profit Quality(5y)401.74%
High Growth Momentum
Growth
EPS 1Y (TTM)15.74%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%27.02%
EPS Next Y14.44%
EPS Next 2Y10.75%
EPS Next 3Y9.87%
EPS Next 5YN/A
Revenue 1Y (TTM)11.15%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%24.13%
Revenue Next Year11.68%
Revenue Next 2Y7.47%
Revenue Next 3Y5.49%
Revenue Next 5YN/A
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 1Y85.88%
FCF growth 3Y-29.23%
FCF growth 5Y11.68%
OCF growth 1Y78.33%
OCF growth 3Y-27.63%
OCF growth 5Y10.16%