ROYAL BANK OF CANADA (RY.CA)
CA7800871021 - Common Stock
We assign a fundamental rating of 2 out of 10 to RY. RY was compared to 38 industry peers in the Banks industry. Both the profitability and financial health of RY have multiple concerns. RY is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RY was profitable.
In the past year RY has reported a negative cash flow from operations.
In the past 5 years RY has always been profitable.
Each year in the past 5 years RY had a positive operating cash flow.
1.2 Ratios
RY has a better Return On Assets (0.76%) than 63.16% of its industry peers.
RY has a better Return On Equity (12.74%) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 12.74% | ||
| ROIC | N/A |
ROA(3y)0.82%
ROA(5y)0.81%
ROE(3y)14.27%
ROE(5y)14.15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 28.65%, RY perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
In the last couple of years the Profit Margin of RY has declined.
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) | 28.65% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y3.26%
PM growth 5Y-1.75%
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.
Compared to 1 year ago, RY has more shares outstanding
The number of shares outstanding for RY has been reduced compared to 5 years ago.
RY has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 2.83 is on the high side and indicates that RY has dependencies on debt financing.
RY has a worse Debt to Equity ratio (2.83) than 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.31%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.87%.
Measured over the past 5 years, RY shows a small growth in Earnings Per Share. The EPS has been growing by 5.69% on average per year.
The Revenue has decreased by -0.67% in the past year.
The Revenue has been growing slightly by 5.68% on average over the past years.
EPS 1Y (TTM)3.87%
EPS 3Y12.57%
EPS 5Y5.69%
EPS Q2Q%14.79%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y5.96%
Revenue growth 5Y5.68%
Sales Q2Q%0.98%
3.2 Future
RY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.87% yearly.
RY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.44% yearly.
EPS Next Y4.51%
EPS Next 2Y6.66%
EPS Next 3Y7.87%
EPS Next 5YN/A
Revenue Next Year4.21%
Revenue Next 2Y4.75%
Revenue Next 3Y4.44%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.23 indicates a correct valuation of RY.
Based on the Price/Earnings ratio, RY is valued more expensive than 94.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.52, RY is valued rather cheaply.
RY is valuated correctly with a Price/Forward Earnings ratio of 12.99.
Based on the Price/Forward Earnings ratio, RY is valued more expensive than 94.74% 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 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.99 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RY does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.15
PEG (5Y)2.5
EPS Next 2Y6.66%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.37%.
RY's Dividend Yield is slightly below the industry average, which is at 3.96.
RY's Dividend Yield is a higher than the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of RY has a limited annual growth rate of 0.44%.
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)0.44%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
RY pays out 36.26% of its income as dividend. This is a sustainable payout ratio.
The dividend of RY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.26%
EPS Next 2Y6.66%
EPS Next 3Y7.87%
ROYAL BANK OF CANADA
TSX:RY (9/13/2024, 7:00:00 PM)
168.02
-0.36 (-0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap237.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 12.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.15
PEG (5Y)2.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 12.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 28.65% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.87%
EPS 3Y12.57%
EPS 5Y
EPS Q2Q%
EPS Next Y4.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y5.96%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y