ROYAL BANK OF CANADA (RY)
CA7800871021 - Common Stock
We assign a fundamental rating of 3 out of 10 to RY. RY was compared to 407 industry peers in the Banks industry. The financial health of RY is average, but there are quite some concerns on its profitability. RY is valued expensive and it does not seem to be growing. Finally 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 has reported a negative cash flow from operations.
Of the past 5 years RY 4 years were profitable.
RY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of RY (0.76%) is comparable to the rest of the industry.
The Return On Equity of RY (12.74%) is better than 87.41% 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
Looking at the Profit Margin, with a value of 28.65%, RY belongs to the top of the industry, outperforming 81.23% 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.
There is no outstanding debt for RY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
RY has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.83, RY is not doing good in the industry: 94.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC10.68%
2.3 Liquidity
RY has a Current Ratio of 2.06. This indicates that RY is financially healthy and has no problem in meeting its short term obligations.
RY has a Current ratio of 2.06. This is amongst the best in the industry. RY outperforms 99.75% of its industry peers.
A Quick Ratio of 2.06 indicates that RY has no problem at all paying its short term obligations.
RY has a Quick ratio of 2.06. This is amongst the best in the industry. RY outperforms 99.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
RY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.25%.
The Earnings Per Share has been growing slightly by 6.53% on average over the past years.
EPS 1Y (TTM)7.25%
EPS 3Y2.91%
EPS 5Y6.53%
EPS Q2Q%13.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.19%
3.2 Future
The Earnings Per Share is expected to grow by 9.39% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.74% on average over the next years.
EPS Next Y9.34%
EPS Next 2Y9.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.24, RY is valued correctly.
RY's Price/Earnings ratio is in line with the industry average.
RY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.02, which indicates a correct valuation of RY.
The rest of the industry has a similar Price/Forward Earnings ratio as RY.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, RY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.02 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.52
PEG (5Y)2.18
EPS Next 2Y9.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, RY has a reasonable but not impressive dividend return.
RY's Dividend Yield is a higher than the industry average which is at 3.21.
RY's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of RY has a limited annual growth rate of 0.44%.
RY has been paying a dividend for at least 10 years, so it has 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 2Y9.39%
EPS Next 3YN/A
ROYAL BANK OF CANADA
NYSE:RY (12/20/2024, 8:04:00 PM)
After market: 120.72 0 (0%)120.72
+1 (+0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners52.58%
Inst Owner Change12.29%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap170.83B
Analysts80
Price Target127.62 (5.72%)
Short Float %0.56%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Dividend Growth(5Y)0.44%
DP36.26%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.85%
Min EPS beat(2)2.99%
Max EPS beat(2)6.71%
EPS beat(4)3
Avg EPS beat(4)2.83%
Min EPS beat(4)-1.26%
Max EPS beat(4)6.71%
EPS beat(8)6
Avg EPS beat(8)1.07%
EPS beat(12)8
Avg EPS beat(12)0.54%
EPS beat(16)12
Avg EPS beat(16)2.85%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)1.54%
Revenue beat(4)1
Avg Revenue beat(4)-1.72%
Min Revenue beat(4)-4.49%
Max Revenue beat(4)1.54%
Revenue beat(8)4
Avg Revenue beat(8)0.93%
Revenue beat(12)6
Avg Revenue beat(12)-0.01%
Revenue beat(16)8
Avg Revenue beat(16)0.36%
PT rev (1m)4.91%
PT rev (3m)9.44%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)1.32%
EPS NY rev (1m)0.15%
EPS NY rev (3m)4.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.37%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.02 | ||
| P/S | 4.44 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.98 | ||
| P/tB | 2.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.48
EY7.02%
EPS(NY)9.27
Fwd EY7.68%
FCF(TTM)-3.7
FCFYN/A
OCF(TTM)-2.53
OCFYN/A
SpS27.16
BVpS61.11
TBVpS47.77
PEG (NY)1.52
PEG (5Y)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 12.74% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 28.65% | ||
| GM | N/A | ||
| FCFM | 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
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 3Y3.26%
PM growth 5Y-1.75%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 81.32% | ||
| Cap/Sales | 4.3% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | N/A |
F-Score3
WACC10.68%
ROIC/WACCN/A
Cap/Depr(3y)91.24%
Cap/Depr(5y)97.98%
Cap/Sales(3y)4.79%
Cap/Sales(5y)4.97%
Profit Quality(3y)219.23%
Profit Quality(5y)394.59%
High Growth Momentum
Growth
EPS 1Y (TTM)7.25%
EPS 3Y2.91%
EPS 5Y6.53%
EPS Q2Q%13.84%
EPS Next Y9.34%
EPS Next 2Y9.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%19.19%
Revenue Next Year6.02%
Revenue Next 2Y5.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year19.51%
EBIT Next 3Y6.13%
EBIT Next 5YN/A
FCF growth 1Y-125.26%
FCF growth 3Y-44.45%
FCF growth 5Y8.55%
OCF growth 1Y-116.01%
OCF growth 3Y-42.73%
OCF growth 5Y8.34%