ROYAL BANK OF CANADA (RY)
CA7800871021 - Common Stock
Taking everything into account, RY scores 4 out of 10 in our fundamental rating. RY was compared to 404 industry peers in the Banks industry. RY has an average financial health and profitability rating. RY is quite expensive at the moment. It does show a decent growth rate. RY also has an excellent dividend rating.
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.
RY had positive earnings in each of the past 5 years.
In the past 5 years RY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RY (0.76%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 12.74%, RY belongs to the top of the industry, outperforming 84.79% of the companies in the same industry.
| 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
The Profit Margin of RY (28.65%) is better than 80.05% of its industry peers.
In the last couple of years the Profit Margin of RY has declined.
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) | 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.
The number of shares outstanding for RY has been increased compared to 1 year ago.
The number of shares outstanding for RY has been reduced compared to 5 years ago.
The debt/assets ratio for RY is higher compared to a year ago.
2.2 Solvency
RY has a Debt/Equity ratio of 2.83. This is a high value indicating a heavy dependency on external financing.
RY has a Debt to Equity ratio of 2.83. This is amonst the worse of the industry: RY underperforms 94.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.19%
2.3 Liquidity
A Current Ratio of 2.06 indicates that RY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.06, RY belongs to the top of the industry, outperforming 99.50% of the companies in the same industry.
RY has a Quick Ratio of 2.06. This indicates that RY is financially healthy and has no problem in meeting its short term obligations.
RY has a better Quick ratio (2.06) than 99.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.87% over the past year.
The Earnings Per Share has been growing slightly by 5.69% on average over the past years.
RY shows a decrease in Revenue. In the last year, the revenue decreased by -0.67%.
RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.68% yearly.
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
Based on estimates for the next years, RY will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.45% on average per year.
The Revenue is expected to grow by 6.09% on average over the next years.
EPS Next Y9.01%
EPS Next 2Y8.15%
EPS Next 3Y8.45%
EPS Next 5YN/A
Revenue Next Year6.45%
Revenue Next 2Y6.25%
Revenue Next 3Y6.09%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.79, the valuation of RY can be described as correct.
RY's Price/Earnings is on the same level as the industry average.
RY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
The Price/Forward Earnings ratio is 13.14, which indicates a correct valuation of RY.
RY's Price/Forward Earnings ratio is in line with the industry average.
RY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 13.14 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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)1.64
PEG (5Y)2.6
EPS Next 2Y8.15%
EPS Next 3Y8.45%
5. Dividend
5.1 Amount
RY has a Yearly Dividend Yield of 3.30%. Purely for dividend investing, there may be better candidates out there.
RY's Dividend Yield is a higher than the industry average which is at 3.02.
Compared to an average S&P500 Dividend Yield of 2.23, RY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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 Years7
Div Non Decr Years7
5.3 Sustainability
36.26% of the earnings are spent on dividend by RY. This is a low number and sustainable payout ratio.
The dividend of RY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.26%
EPS Next 2Y8.15%
EPS Next 3Y8.45%
ROYAL BANK OF CANADA
NYSE:RY (11/22/2024, 10:51:51 AM)
125.1
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap176.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 | 14.79 | ||
| Fwd PE | 13.14 | ||
| 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)1.64
PEG (5Y)2.6
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 | 2.06 | ||
| Quick Ratio | 2.06 | ||
| 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 Y9.01%
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