ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis
NYSE:RY - CA7800871021 - Common Stock
145.36 USD
-0.49 (-0.34%)
145.36 USD
0 (0%)
Taking everything into account, RY scores 4 out of 10 in our fundamental rating. RY was compared to 395 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.
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 of 0.84%. This is comparable to the rest of the industry: RY outperforms 49.49% of its industry peers.
Looking at the Return On Equity, with a value of 13.80%, RY belongs to the top of the industry, outperforming 90.91% 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
The Profit Margin of RY (29.01%) is better than 78.54% 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.
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.
Compared to 1 year ago, RY has an improved debt to assets ratio.
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 Debt to FCF ratio of 3.86. This is in the lower half of the industry: RY underperforms 62.63% 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.
Looking at the Debt to Equity ratio, with a value of 2.41, RY is doing worse than 90.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.38%
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 15.58%, which is quite good.
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 17.31% 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)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 10.58% on average per year.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y13.24%
EPS Next 2Y10.55%
EPS Next 3Y10.58%
EPS Next 5YN/A
Revenue Next Year12.09%
Revenue Next 2Y7.4%
Revenue Next 3Y6.07%
Revenue Next 5Y4.35%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.64, the valuation of RY can be described as correct.
Based on the Price/Earnings ratio, RY is valued a bit more expensive than 63.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, RY is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.52, which indicates a correct valuation of RY.
Based on the Price/Forward Earnings ratio, RY is valued a bit more expensive than 70.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RY to the average of the S&P500 Index (22.72), we can say RY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 13.52 |
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 95.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.32 | ||
| 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)1.11
PEG (5Y)2.3
EPS Next 2Y10.55%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.01%. Purely for dividend investing, there may be better candidates out there.
RY's Dividend Yield is comparable with the industry average which is at 3.20.
RY's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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 46.12% 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.
DP46.12%
EPS Next 2Y10.55%
EPS Next 3Y10.58%
145.36
-0.49 (-0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners49.26%
Inst Owner Change-1.33%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap205.03B
Analysts83.33
Price Target142.58 (-1.91%)
Short Float %0.69%
Short Ratio8.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Yearly Dividend3.43
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)1.16%
PT rev (3m)8.52%
EPS NQ rev (1m)2.4%
EPS NQ rev (3m)3.28%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 13.52 | ||
| P/S | 4.37 | ||
| P/FCF | 3.32 | ||
| P/OCF | 3.23 | ||
| P/B | 2.08 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.93
EY6.83%
EPS(NY)10.75
Fwd EY7.4%
FCF(TTM)43.72
FCFY30.08%
OCF(TTM)44.94
OCFY30.92%
SpS33.24
BVpS69.89
TBVpS56.11
PEG (NY)1.11
PEG (5Y)2.3
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
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 | 2.41 | ||
| 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
WACC14.38%
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 Y13.24%
EPS Next 2Y10.55%
EPS Next 3Y10.58%
EPS Next 5YN/A
Revenue 1Y (TTM)17.31%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%16.09%
Revenue Next Year12.09%
Revenue Next 2Y7.4%
Revenue Next 3Y6.07%
Revenue Next 5Y4.35%
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%