ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis
NYSE:RY - New York Stock Exchange, Inc. - CA7800871021 - Common Stock - Currency: USD
Overall RY gets a fundamental rating of 3 out of 10. We evaluated RY against 404 industry peers in the Banks industry. RY has a medium profitability rating, but doesn't score so well on its financial health evaluation. RY has a correct valuation and a medium growth rate. RY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RY had positive earnings in the past year.
In the past year RY had a positive cash flow from operations.
Each year in the past 5 years RY has been profitable.
In the past 5 years RY always reported a positive cash flow from operatings.
1.2 Ratios
RY has a Return On Assets (0.73%) which is comparable to the rest of the industry.
RY has a better Return On Equity (12.52%) than 85.93% 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
With a decent Profit Margin value of 27.74%, RY is doing good in the industry, outperforming 76.13% 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) | 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.
RY has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RY has been reduced compared to 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.
RY has a Debt to FCF ratio of 16.98. This is in the lower half of the industry: RY underperforms 76.13% of its industry peers.
RY has a Debt/Equity ratio of 2.79. This is a high value indicating a heavy dependency on external financing.
RY's Debt to Equity ratio of 2.79 is on the low side compared to the rest of the industry. RY is outperformed by 94.72% of its industry peers.
| 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
RY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.42%.
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 been growing slightly by 2.16% in the past year.
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
RY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
Based on estimates for the next years, RY will show a small growth in Revenue. The Revenue will grow by 0.57% on average per year.
EPS Next Y10.36%
EPS Next 2Y10.05%
EPS Next 3Y7.76%
EPS Next 5YN/A
Revenue Next Year7.24%
Revenue Next 2Y6.38%
Revenue Next 3Y0.57%
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 13.97 indicates a correct valuation of RY.
Compared to the rest of the industry, the Price/Earnings ratio of RY is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.63, RY is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.65, RY is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.68. RY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
61.56% of the companies in the same industry are more expensive than RY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| 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)1.35
PEG (5Y)2.2
EPS Next 2Y10.05%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, RY has a reasonable but not impressive dividend return.
RY's Dividend Yield is a higher than the industry average which is at 3.15.
RY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
41.72% of the earnings are spent on dividend by RY. This is a bit on the high side, but may be sustainable.
The dividend of RY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.72%
EPS Next 2Y10.05%
EPS Next 3Y7.76%
118.88
-0.78 (-0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners52.58%
Inst Owner Change-3.4%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap168.14B
Analysts81.67
Price Target126.59 (6.49%)
Short Float %0.87%
Short Ratio11.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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%
PT rev (3m)4.06%
EPS NQ rev (1m)1.51%
EPS NQ rev (3m)3.34%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)1.76%
Revenue NQ rev (3m)6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.97 | ||
| Fwd PE | 12.65 | ||
| P/S | 4.17 | ||
| P/FCF | 11.46 | ||
| P/OCF | 10.33 | ||
| P/B | 1.88 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.51
EY7.16%
EPS(NY)9.4
Fwd EY7.9%
FCF(TTM)10.38
FCFY8.73%
OCF(TTM)11.51
OCFY9.68%
SpS28.53
BVpS63.23
TBVpS49.75
PEG (NY)1.35
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 Y10.36%
EPS Next 2Y10.05%
EPS Next 3Y7.76%
EPS Next 5YN/A
Revenue 1Y (TTM)2.16%
Revenue growth 3Y4.89%
Revenue growth 5Y4.51%
Sales Q2Q%15.72%
Revenue Next Year7.24%
Revenue Next 2Y6.38%
Revenue Next 3Y0.57%
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%