ROYAL BANK OF CANADA(NYSE:RY) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to RY. RY was compared to 398 industry peers in the Banks industry. There are concerns on the financial health of RY while its profitability can be described as average. RY has a decent growth rate and is not valued too expensively.

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1. Profitability

1.1 Basic Checks

In the past year RY was profitable.

In the past year RY had a positive 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 Return On Assets (0.79%) which is comparable to the rest of the industry.

With an excellent Return On Equity value of 13.06%, RY belongs to the best of the industry, outperforming 86.43% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	0.79%
ROE	13.06%
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

RY has a Profit Margin of 28.71%. This is in the better half of the industry: RY outperforms 78.89% of its industry peers.

In the last couple of years the Profit Margin of RY has remained more or less at the same level.

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)	28.71%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

Compared to 5 years ago, RY has less shares outstanding

RY has a better debt/assets ratio than last year.

2.2 Solvency

RY has a debt to FCF ratio of 6.24. This is a slightly negative value and a sign of low solvency as RY would need 6.24 years to pay back of all of its debts.

RY's Debt to FCF ratio of 6.24 is on the low side compared to the rest of the industry. RY is outperformed by 70.85% of its industry peers.

RY has a Debt/Equity ratio of 2.51. This is a high value indicating a heavy dependency on external financing.

RY has a worse Debt to Equity ratio (2.51) than 92.46% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.51
Debt/FCF	6.24
Altman-Z	N/A

ROIC/WACCN/A

WACC13.81%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.74% over the past year.

Measured over the past 5 years, RY shows a small growth in Earnings Per Share. The EPS has been growing by 6.36% on average per year.

RY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.15%.

RY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.51% yearly.

EPS 1Y (TTM)15.74%

EPS 3Y2.64%

EPS 5Y6.36%

EPS Q2Q%27.02%

Revenue 1Y (TTM)11.15%

Revenue growth 3Y4.89%

Revenue growth 5Y4.51%

Sales Q2Q%24.13%

3.2 Future

RY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.87% yearly.

The Revenue is expected to grow by 5.49% on average over the next years.

EPS Next Y14.44%

EPS Next 2Y10.75%

EPS Next 3Y9.87%

EPS Next 5YN/A

Revenue Next Year11.68%

Revenue Next 2Y7.47%

Revenue Next 3Y5.49%

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 accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

RY is valuated correctly with a Price/Earnings ratio of 12.67.

RY's Price/Earnings ratio is in line with the industry average.

RY is valuated cheaply when we compare the Price/Earnings ratio to 28.64, which is the current average of the S&P500 Index.

Based on the Price/Forward Earnings ratio of 10.98, the valuation of RY can be described as reasonable.

RY's Price/Forward Earnings ratio is in line with the industry average.

RY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.44.

		Industry Rank	Sector Rank
PE	12.67
Fwd PE	10.98

4.2 Price Multiples

93.97% 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	4.31
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

PEG (NY)0.88

PEG (5Y)1.99

EPS Next 2Y10.75%

EPS Next 3Y9.87%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.68%, RY has a reasonable but not impressive dividend return.

Compared to an average industry Dividend Yield of 3.68, RY pays a bit more dividend than its industry peers.

RY's Dividend Yield is a higher than the S&P500 average which is at 2.52.

		Industry Rank	Sector Rank
Dividend Yield	3.68%

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

RY pays out 43.10% of its income as dividend. 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.

DP43.1%

EPS Next 2Y10.75%

EPS Next 3Y9.87%

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ROYAL BANK OF CANADA

NYSE:RY (4/23/2025, 8:04:00 PM)

After market: 117.79 0 (0%)

117.79

-0.18 (-0.15%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)02-27 2025-02-27/bmo

Earnings (Next)05-28 2025-05-28/bmo

Inst Owners51.32%

Inst Owner Change0.09%

Ins Owners0.01%

Ins Owner ChangeN/A

Market Cap166.60B

Analysts83.33

Price Target128.04 (8.7%)

Short Float %0.46%

Short Ratio5.08

Dividend

		Industry Rank	Sector Rank
Dividend Yield	3.68%

Yearly Dividend3.4

Dividend Growth(5Y)2.34%

DP43.1%

Div Incr Years8

Div Non Decr Years8

Ex-Date04-24 2025-04-24 (1.48)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)3.43%

Min EPS beat(2)-0.92%

Max EPS beat(2)7.78%

EPS beat(4)3

Avg EPS beat(4)4.14%

Min EPS beat(4)-0.92%

Max EPS beat(4)7.78%

EPS beat(8)5

Avg EPS beat(8)1.54%

EPS beat(12)8

Avg EPS beat(12)1.47%

EPS beat(16)11

Avg EPS beat(16)1.87%

Revenue beat(2)1

Avg Revenue beat(2)1.99%

Min Revenue beat(2)-0.22%

Max Revenue beat(2)4.2%

Revenue beat(4)2

Avg Revenue beat(4)1.1%

Min Revenue beat(4)-1.13%

Max Revenue beat(4)4.2%

Revenue beat(8)4

Avg Revenue beat(8)0.46%

Revenue beat(12)5

Avg Revenue beat(12)-0.07%

Revenue beat(16)8

Avg Revenue beat(16)0.46%

PT rev (1m)1.95%

PT rev (3m)1.14%

EPS NQ rev (1m)-0.4%

EPS NQ rev (3m)0.8%

EPS NY rev (1m)3.23%

EPS NY rev (3m)3.85%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)5.85%

Revenue NY rev (1m)0%

Revenue NY rev (3m)4.15%

Valuation

		Industry Rank	Sector Rank
PE	12.67
Fwd PE	10.98
P/S	3.8
P/FCF	4.31
P/OCF	4.12
P/B	1.73
P/tB	2.18
EV/EBITDA	N/A

EPS(TTM)9.3

EY7.9%

EPS(NY)10.73

Fwd EY9.11%

FCF(TTM)27.33

FCFY23.2%

OCF(TTM)28.59

OCFY24.27%

SpS30.98

BVpS68.07

TBVpS54.12

PEG (NY)0.88

PEG (5Y)1.99

Profitability

		Industry Rank	Sector Rank
ROA	0.79%
ROE	13.06%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	28.71%
GM	N/A
FCFM	88.22%

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-Score7

Asset Turnover0.03

Health

		Industry Rank	Sector Rank
Debt/Equity	2.51
Debt/FCF	6.24
Debt/EBITDA	N/A
Cap/Depr	80.46%
Cap/Sales	4.09%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	307.28%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score7

WACC13.81%

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)15.74%

EPS 3Y2.64%

EPS 5Y6.36%

EPS Q2Q%27.02%

EPS Next Y14.44%

EPS Next 2Y10.75%

EPS Next 3Y9.87%

EPS Next 5YN/A

Revenue 1Y (TTM)11.15%

Revenue growth 3Y4.89%

Revenue growth 5Y4.51%

Sales Q2Q%24.13%

Revenue Next Year11.68%

Revenue Next 2Y7.47%

Revenue Next 3Y5.49%

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 1Y85.88%

FCF growth 3Y-29.23%

FCF growth 5Y11.68%

OCF growth 1Y78.33%

OCF growth 3Y-27.63%

OCF growth 5Y10.16%

ROYAL BANK OF CANADA (RY) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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