| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
RY Overview
Royal Bank of Canada operates as a diversified financial service company worldwide.
Rewards
Risk Analysis
No risks detected for RY from our risk checks.
Royal Bank of Canada Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$127.66 |
| 52 Week High | CA$90.75 |
| 52 Week Low | CA$134.23 |
| Beta | 0.79 |
| 1 Month Change | -2.06% |
| 3 Month Change | 1.35% |
| 1 Year Change | 33.72% |
| 3 Year Change | 22.64% |
| 5 Year Change | 56.83% |
| Change since IPO | 1,932.40% |
Recent News & Updates
Royal Bank of Canada (TSE:RY) Has Re-Affirmed Its Dividend Of CA$1.08
The board of Royal Bank of Canada ( TSE:RY ) has announced that it will pay a dividend of CA$1.08 per share on the 24th...
Royal Bank of Canada (TSE:RY) Has Affirmed Its Dividend Of CA$1.08
Royal Bank of Canada ( TSE:RY ) will pay a dividend of CA$1.08 on the 24th of November. Based on this payment, the...
With EPS Growth And More, Royal Bank of Canada (TSE:RY) Is Interesting
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
Shareholder Returns
| RY | CA Banks | CA Market | |
|---|---|---|---|
| 7D | -1.5% | -0.3% | -0.6% |
| 1Y | 33.7% | 39.2% | 28.9% |
Return vs Industry: RY underperformed the Canadian Banks industry which returned 39.2% over the past year.
Return vs Market: RY exceeded the Canadian Market which returned 29% over the past year.
Price Volatility
| RY volatility | |
|---|---|
| RY Beta | 0.79 |
| Industry Beta | 0.92 |
| Market Beta | 1 |
Stable Share Price: RY is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 1% a week.
Volatility Over Time: RY's weekly volatility (1%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1864 | 85,887 | Dave McKay | https://www.rbc.com |
Royal Bank of Canada operates as a diversified financial service company worldwide. The company’s Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network.
Valuation
Is Royal Bank of Canada undervalued compared to its fair value and its price relative to the market?
28.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RY (CA$127.66) is trading below our estimate of fair value (CA$177.55)
Significantly Below Fair Value: RY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RY is poor value based on its PE Ratio (12x) compared to the Canadian Banks industry average (11.2x).
PE vs Market: RY is good value based on its PE Ratio (12x) compared to the Canadian market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: RY is poor value based on its PEG Ratio (9.4x)
Price to Book Ratio
PB vs Industry: RY is overvalued based on its PB Ratio (2x) compared to the CA Banks industry average (1.5x).
Future Growth
How is Royal Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
1.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RY's forecast earnings growth (1.3% per year) is below the savings rate (1.5%).
Earnings vs Market: RY's earnings (1.3% per year) are forecast to grow slower than the Canadian market (12.2% per year).
High Growth Earnings: RY's earnings are forecast to grow, but not significantly.
Revenue vs Market: RY's revenue (5.2% per year) is forecast to grow slower than the Canadian market (6.1% per year).
High Growth Revenue: RY's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RY's Return on Equity is forecast to be low in 3 years time (15.4%).
Past Performance
How has Royal Bank of Canada performed over the past 5 years?
4.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RY has high quality earnings.
Growing Profit Margin: RY's current net profit margins (31.2%) are higher than last year (25.9%).
Past Earnings Growth Analysis
Earnings Trend: RY's earnings have grown by 4.8% per year over the past 5 years.
Accelerating Growth: RY's earnings growth over the past year (36%) exceeds its 5-year average (4.8% per year).
Earnings vs Industry: RY earnings growth over the past year (36%) underperformed the Banks industry 36.4%.
Return on Equity
High ROE: RY's Return on Equity (16%) is considered low.
Financial Health
How is Royal Bank of Canada's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: RY's Assets to Equity ratio (17.6x) is moderate.
Allowance for Bad Loans: RY has a sufficient allowance for bad loans (179%).
Low Risk Liabilities: 68% of RY's liabilities are made up of primarily low risk sources of funding.
Loan Level: RY has an appropriate level of Loans to Assets ratio (41%).
Low Risk Deposits: RY's Loans to Deposits ratio (64%) is appropriate.
Level of Bad Loans: RY has an appropriate level of bad loans (0.4%).
Dividend
What is Royal Bank of Canada current dividend yield, its reliability and sustainability?
3.38%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RY's dividend (3.38%) is higher than the bottom 25% of dividend payers in the Canadian market (1.64%).
High Dividend: RY's dividend (3.38%) is low compared to the top 25% of dividend payers in the Canadian market (4.51%).
Stability and Growth of Payments
Stable Dividend: RY's dividends per share have been stable in the past 10 years.
Growing Dividend: RY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.6%), RY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RY's dividends in 3 years are forecast to be well covered by earnings (40.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Dave McKay (58 yo)
7.08yrs
Tenure
CA$13,481,127
Compensation
Mr. David I. McKay, also known as Dave, has been the President of Royal Bank of Canada since February 26, 2014 and its Chief Executive Officer and Director since August 1, 2014. Mr. McKay is responsible fo...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD10.57M) is above average for companies of similar size in the Canadian market ($USD5.88M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RY's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: RY's board of directors are considered experienced (6.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Royal Bank of Canada's employee growth, exchange listings and data sources
Key Information
- Name: Royal Bank of Canada
- Ticker: RY
- Exchange: TSX
- Founded: 1864
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: CA$181.874b
- Shares outstanding: 1.42b
- Website: https://www.rbc.com
Number of Employees
Location
- Royal Bank of Canada
- Royal Bank Plaza
- 200 Bay Street
- Toronto
- Ontario
- M5J 2J5
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:03 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2020/10/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.