ROYAL BANK OF CANADA - RY 3.2 PERP (RY-PR-J.CA) Stock Fundamental Analysis
TSX:RY-PR-J - Toronto Stock Exchange - CA78012Q1129 - Currency: CAD
Taking everything into account, RY-PR-J scores 4 out of 10 in our fundamental rating. RY-PR-J was compared to 31 industry peers in the Banks industry. There are concerns on the financial health of RY-PR-J while its profitability can be described as average. RY-PR-J may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
RY-PR-J had positive earnings in the past year.
RY-PR-J had a positive operating cash flow in the past year.
RY-PR-J had positive earnings in each of the past 5 years.
RY-PR-J had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.73%, RY-PR-J is doing good in the industry, outperforming 67.74% of the companies in the same industry.
RY-PR-J's Return On Equity of 12.52% is fine compared to the rest of the industry. RY-PR-J outperforms 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.73% | ||
| ROE | 12.52% | ||
| 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-PR-J has a better Profit Margin (27.74%) than 64.52% of its industry peers.
In the last couple of years the Profit Margin of RY-PR-J has remained more or less at the same level.
The Operating Margin and Gross Margin are not available for RY-PR-J so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 27.74% | ||
| 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-PR-J does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RY-PR-J has more shares outstanding
Compared to 5 years ago, RY-PR-J has less shares outstanding
Compared to 1 year ago, RY-PR-J has an improved debt to assets ratio.
2.2 Solvency
RY-PR-J has a debt to FCF ratio of 16.98. This is a negative value and a sign of low solvency as RY-PR-J would need 16.98 years to pay back of all of its debts.
RY-PR-J has a worse Debt to FCF ratio (16.98) than 80.65% of its industry peers.
A Debt/Equity ratio of 2.79 is on the high side and indicates that RY-PR-J has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.79, RY-PR-J is doing worse than 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 16.98 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.54%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RY-PR-J shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.42%.
The Earnings Per Share has been growing slightly by 6.36% on average over the past years.
RY-PR-J shows a small growth in Revenue. In the last year, the Revenue has grown by 2.16%.
RY-PR-J shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.51% yearly.
EPS 1Y (TTM)6.42%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%10.43%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%15.72%
3.2 Future
The Earnings Per Share is expected to grow by 8.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.76% on average over the next years.
EPS Next Y10.86%
EPS Next 2Y10.17%
EPS Next 3Y8.58%
EPS Next 5YN/A
Revenue Next Year8.17%
Revenue Next 2Y6.62%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
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
RY-PR-J is valuated cheaply with a Price/Earnings ratio of 2.05.
RY-PR-J's Price/Earnings ratio is rather cheap when compared to the industry. RY-PR-J is cheaper than 90.32% of the companies in the same industry.
RY-PR-J's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 1.85, the valuation of RY-PR-J can be described as very cheap.
RY-PR-J's Price/Forward Earnings ratio is rather cheap when compared to the industry. RY-PR-J is cheaper than 90.32% of the companies in the same industry.
RY-PR-J is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.05 | ||
| Fwd PE | 1.85 |
4.2 Price Multiples
RY-PR-J's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RY-PR-J is cheaper than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.68 | ||
| 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)0.19
PEG (5Y)0.32
EPS Next 2Y10.17%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
RY-PR-J has a Yearly Dividend Yield of 3.49%.
RY-PR-J's Dividend Yield is slightly below the industry average, which is at 4.02.
RY-PR-J's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
The dividend of RY-PR-J has a limited annual growth rate of 2.34%.
RY-PR-J has been paying a dividend for at least 10 years, so it has a reliable track record.
RY-PR-J has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.34%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
41.72% of the earnings are spent on dividend by RY-PR-J. This is a bit on the high side, but may be sustainable.
The dividend of RY-PR-J is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.72%
EPS Next 2Y10.17%
EPS Next 3Y8.58%
ROYAL BANK OF CANADA - RY 3.2 PERP
TSX:RY-PR-J (2/21/2025, 7:00:00 PM)
24.78
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners51.32%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap35.05B
Analysts81.67
Price Target26.58 (7.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Yearly Dividend4.71
Dividend Growth(5Y)2.34%
DP41.72%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.9%
Min EPS beat(2)-0.92%
Max EPS beat(2)6.71%
EPS beat(4)2
Avg EPS beat(4)1.88%
Min EPS beat(4)-1.26%
Max EPS beat(4)6.71%
EPS beat(8)5
Avg EPS beat(8)0.87%
EPS beat(12)8
Avg EPS beat(12)0.98%
EPS beat(16)11
Avg EPS beat(16)2.32%
Revenue beat(2)0
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)1.54%
Revenue beat(8)4
Avg Revenue beat(8)1.12%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)8
Avg Revenue beat(16)0.72%
PT rev (1m)2.55%
PT rev (3m)12.06%
EPS NQ rev (1m)1.51%
EPS NQ rev (3m)3.34%
EPS NY rev (1m)0.6%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)1.76%
Revenue NQ rev (3m)6%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.05 | ||
| Fwd PE | 1.85 | ||
| P/S | 0.61 | ||
| P/FCF | 1.68 | ||
| P/OCF | 1.51 | ||
| P/B | 0.28 | ||
| P/tB | 0.35 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.1
EY48.83%
EPS(NY)13.41
Fwd EY54.13%
FCF(TTM)14.75
FCFY59.52%
OCF(TTM)16.36
OCFY66.02%
SpS40.54
BVpS89.86
TBVpS70.71
PEG (NY)0.19
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.73% | ||
| ROE | 12.52% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 27.74% | ||
| GM | N/A | ||
| FCFM | 36.38% |
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-Score6
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 16.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 76.48% | ||
| Cap/Sales | 3.98% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 131.12% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC15.54%
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)6.42%
EPS 3Y2.64%
EPS 5Y6.36%
EPS Q2Q%10.43%
EPS Next Y10.86%
EPS Next 2Y10.17%
EPS Next 3Y8.58%
EPS Next 5YN/A
Revenue 1Y (TTM)2.16%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%15.72%
Revenue Next Year8.17%
Revenue Next 2Y6.62%
Revenue Next 3Y4.76%
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 1Y-10.66%
FCF growth 3Y-29.23%
FCF growth 5Y11.68%
OCF growth 1Y-11.27%
OCF growth 3Y-27.63%
OCF growth 5Y10.16%