RY Fundamental Analysis - ROYAL BANK OF CANADA

Fundamental Rating

Overall RY gets a fundamental rating of 4 out of 10. We evaluated RY against 394 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.

Quickly go to:

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.

Each year in the past 5 years RY had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of 0.79%, RY perfoms like the industry average, outperforming 45.94% of the companies in the same industry.

The Return On Equity of RY (13.43%) is better than 88.32% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.79%
ROE	13.43%
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

Looking at the Profit Margin, with a value of 28.64%, RY is in the better half of the industry, outperforming 77.41% of the companies in the same industry.

RY's Profit Margin has been stable 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)	28.64%
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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.

Compared to 5 years ago, RY has less shares outstanding

RY has a better debt/assets ratio than last year.

2.2 Solvency

RY has a debt to FCF ratio of 4.34. This is a neutral value as RY would need 4.34 years to pay back of all of its debts.

With a Debt to FCF ratio value of 4.34, RY is not doing good in the industry: 68.53% of the companies in the same industry are doing better.

RY has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.

Looking at the Debt to Equity ratio, with a value of 2.57, RY is doing worse than 92.13% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	2.57
Debt/FCF	4.34
Altman-Z	N/A

ROIC/WACCN/A

WACC14.55%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.75% over the past year.

RY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.

The Revenue has grown by 16.54% in the past year. This is quite good.

RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.51% yearly.

EPS 1Y (TTM)14.75%

EPS 3Y2.64%

EPS 5Y6.36%

EPS Q2Q%6.85%

Revenue 1Y (TTM)16.54%

Revenue growth 3Y4.89%

Revenue growth 5Y4.51%

Sales Q2Q%10.72%

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 9.87% yearly.

The Revenue is expected to grow by 6.10% on average over the next years.

EPS Next Y14.44%

EPS Next 2Y10.75%

EPS Next 3Y9.87%

EPS Next 5YN/A

Revenue Next Year12.21%

Revenue Next 2Y7.66%

Revenue Next 3Y6.1%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.81 indicates a correct valuation of RY.

The rest of the industry has a similar Price/Earnings ratio as RY.

Compared to an average S&P500 Price/Earnings ratio of 27.41, RY is valued a bit cheaper.

RY is valuated correctly with a Price/Forward Earnings ratio of 12.16.

RY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RY is more expensive than 66.50% of the companies in the same industry.

RY is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	13.81
Fwd PE	12.16

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, RY is valued cheaply inside the industry as 95.43% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	3.23
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)0.96

PEG (5Y)2.17

EPS Next 2Y10.75%

EPS Next 3Y9.87%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.52%, RY has a reasonable but not impressive dividend return.

Compared to an average industry Dividend Yield of 3.31, RY pays a bit more dividend than its industry peers.

Compared to an average S&P500 Dividend Yield of 2.35, RY pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	3.52%

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 47.48% of its income as dividend. This is a bit on the high side, but may be sustainable.

RY's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP47.48%

EPS Next 2Y10.75%

EPS Next 3Y9.87%

More info and screens

Find the best dividend stocks

Show peers with best dividend

ROYAL BANK OF CANADA

NYSE:RY (7/11/2025, 8:04:00 PM)

After market: 131.76 0 (0%)

131.76

-1.53 (-1.15%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)05-29 2025-05-29/bmo

Earnings (Next)08-26 2025-08-26/bmo

Inst Owners49.26%

Inst Owner Change0%

Ins Owners0.01%

Ins Owner ChangeN/A

Market Cap185.85B

Analysts83.33

Price Target135.96 (3.19%)

Short Float %0.6%

Short Ratio7.3

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.52%

Yearly Dividend3.44

Dividend Growth(5Y)2.34%

DP47.48%

Div Incr Years8

Div Non Decr Years8

Ex-Date07-24 2025-07-24 (1.54)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)1.43%

Min EPS beat(2)-4.92%

Max EPS beat(2)7.78%

EPS beat(4)2

Avg EPS beat(4)2.16%

Min EPS beat(4)-4.92%

Max EPS beat(4)7.78%

EPS beat(8)5

Avg EPS beat(8)1.88%

EPS beat(12)7

Avg EPS beat(12)0.31%

EPS beat(16)10

Avg EPS beat(16)0.99%

Revenue beat(2)1

Avg Revenue beat(2)0.45%

Min Revenue beat(2)-3.31%

Max Revenue beat(2)4.2%

Revenue beat(4)1

Avg Revenue beat(4)-0.11%

Min Revenue beat(4)-3.31%

Max Revenue beat(4)4.2%

Revenue beat(8)3

Avg Revenue beat(8)-0.01%

Revenue beat(12)4

Avg Revenue beat(12)-0.57%

Revenue beat(16)7

Avg Revenue beat(16)-0.4%

PT rev (1m)1.19%

PT rev (3m)6.19%

EPS NQ rev (1m)-0.42%

EPS NQ rev (3m)-0.42%

EPS NY rev (1m)0%

EPS NY rev (3m)-0.22%

Revenue NQ rev (1m)-0.46%

Revenue NQ rev (3m)-0.46%

Revenue NY rev (1m)0%

Revenue NY rev (3m)0.47%

Valuation

		Industry Rank	Sector Rank
PE	13.81
Fwd PE	12.16
P/S	4.1
P/FCF	3.23
P/OCF	3.13
P/B	1.92
P/tB	2.41
EV/EBITDA	N/A

EPS(TTM)9.54

EY7.24%

EPS(NY)10.83

Fwd EY8.22%

FCF(TTM)40.8

FCFY30.96%

OCF(TTM)42.12

OCFY31.96%

SpS32.14

BVpS68.54

TBVpS54.66

PEG (NY)0.96

PEG (5Y)2.17

Profitability

		Industry Rank	Sector Rank
ROA	0.79%
ROE	13.43%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	28.64%
GM	N/A
FCFM	126.92%

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

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-Score8

Asset Turnover0.03

Health

		Industry Rank	Sector Rank
Debt/Equity	2.57
Debt/FCF	4.34
Debt/EBITDA	N/A
Cap/Depr	81.33%
Cap/Sales	4.11%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	443.16%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score8

WACC14.55%

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)14.75%

EPS 3Y2.64%

EPS 5Y6.36%

EPS Q2Q%6.85%

EPS Next Y14.44%

EPS Next 2Y10.75%

EPS Next 3Y9.87%

EPS Next 5YN/A

Revenue 1Y (TTM)16.54%

Revenue growth 3Y4.89%

Revenue growth 5Y4.51%

Sales Q2Q%10.72%

Revenue Next Year12.21%

Revenue Next 2Y7.66%

Revenue Next 3Y6.1%

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 1Y106.52%

FCF growth 3Y-29.23%

FCF growth 5Y11.68%

OCF growth 1Y98.82%

OCF growth 3Y-27.63%

OCF growth 5Y10.16%

ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens