ROYAL BANK OF CANADA (RY.CA) Stock Fundamental Analysis
TSX:RY - Toronto Stock Exchange - CA7800871021 - Common Stock - Currency: CAD
Overall RY gets a fundamental rating of 3 out of 10. We evaluated RY against 31 industry peers in the Banks industry. RY has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, RY is valued expensive at the moment.
1. Profitability
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.
1.2 Ratios
RY has a Return On Assets of 0.73%. This is in the better half of the industry: RY outperforms 61.29% of its industry peers.
RY's Return On Equity of 12.52% is fine compared to the rest of the industry. RY outperforms 64.52% 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
The Profit Margin of RY (27.74%) is comparable to the rest of the industry.
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) | 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 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.
RY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RY has been reduced compared to a year ago.
2.2 Solvency
RY has a debt to FCF ratio of 16.98. This is a negative value and a sign of low solvency as RY would need 16.98 years to pay back of all of its debts.
The Debt to FCF ratio of RY (16.98) is worse than 87.10% of its industry peers.
A Debt/Equity ratio of 2.79 is on the high side and indicates that RY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.79, RY is doing worse than 83.87% 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
WACC13.57%
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 been growing slightly by 6.42% 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.
RY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.16%.
The Revenue has been growing slightly by 4.51% on average over the past years.
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
Based on estimates for the next years, RY will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.58% on average per year.
RY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
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
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.
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
With a Price/Earnings ratio of 13.99, RY is valued correctly.
93.55% of the companies in the same industry are cheaper than RY, based on the Price/Earnings ratio.
RY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 12.62, which indicates a correct valuation of RY.
Based on the Price/Forward Earnings ratio, RY is valued more expensive than 93.55% of the companies in the same industry.
RY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
90.32% of the companies in the same industry are cheaper than RY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.47 | ||
| 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)1.29
PEG (5Y)2.2
EPS Next 2Y10.17%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.49%.
Compared to an average industry Dividend Yield of 4.02, RY's dividend is way lower than its industry peers. On top of this 83.87% of the companies listed in the same industry pay a better dividend than RY!
RY'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 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.
RY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.34%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
41.72% of the earnings are spent on dividend by RY. 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.
DP41.72%
EPS Next 2Y10.17%
EPS Next 3Y8.58%
TSX:RY (2/21/2025, 7:00:00 PM)
169.22
-0.18 (-0.11%)
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 Cap239.34B
Analysts81.67
Price Target180.94 (6.93%)
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 Years8
Div Non Decr Years8
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)-0.49%
PT rev (3m)4.8%
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 | 13.99 | ||
| Fwd PE | 12.62 | ||
| P/S | 4.17 | ||
| P/FCF | 11.47 | ||
| P/OCF | 10.34 | ||
| P/B | 1.88 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.1
EY7.15%
EPS(NY)13.41
Fwd EY7.93%
FCF(TTM)14.75
FCFY8.72%
OCF(TTM)16.36
OCFY9.67%
SpS40.54
BVpS89.86
TBVpS70.71
PEG (NY)1.29
PEG (5Y)2.2
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
WACC13.57%
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%