Executive Summary
Royal Bank of Canada operates as a diversified financial service company worldwide. More Details
Rewards
Risk Analysis
No risks detected for RY from our risk checks.
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Royal Bank of Canada's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RY is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: RY's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
-0.6%
RY
1.4%
CA Banks
0.2%
CA Market
1 Year Return
0.9%
RY
0.2%
CA Banks
1.5%
CA Market
Return vs Industry: RY matched the Canadian Banks industry which returned 0.2% over the past year.
Return vs Market: RY matched the Canadian Market which returned 1.5% over the past year.
Shareholder returns
| RY | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | 1.4% | 0.2% |
| 30 Day | 3.6% | 4.1% | 3.6% |
| 90 Day | 11.4% | 20.1% | 13.3% |
| 1 Year | 5.6%0.9% | 5.5%0.2% | 5.2%1.5% |
| 3 Year | 13.4%0.4% | 10.7%-3.2% | 13.1%2.3% |
| 5 Year | 92.4%59.4% | 83.2%48.4% | 69.3%43.3% |
Long-Term Price Volatility Vs. Market
How volatile is Royal Bank of Canada's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Royal Bank of Canada's (TSE:RY) 4.0% Dividend Worth Your Time?1 month ago | Simply Wall St
Did You Participate In Any Of Royal Bank of Canada's (TSE:RY) Respectable 75% Return?2 months ago | Simply Wall St
Royal Bank of Canada (TSE:RY) Insiders Increased Their HoldingsValuation
Is Royal Bank of Canada undervalued compared to its fair value and its price relative to the market?
13.75x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RY (CA$108.3) is trading above our estimate of fair value (CA$97.66)
Significantly Below Fair Value: RY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RY is poor value based on its PE Ratio (13.8x) compared to the CA Banks industry average (13.4x).
PE vs Market: RY is good value based on its PE Ratio (13.8x) compared to the Canadian market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: RY is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: RY is overvalued based on its PB Ratio (1.9x) compared to the CA Banks industry average (1.3x).
Next Steps
Future Growth
How is Royal Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
8.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RY's forecast earnings growth (8.1% per year) is above the savings rate (1.5%).
Earnings vs Market: RY's earnings (8.1% per year) are forecast to grow slower than the Canadian market (26.2% per year).
High Growth Earnings: RY's earnings are forecast to grow, but not significantly.
Revenue vs Market: RY's revenue (5.3% per year) is forecast to grow slower than the Canadian market (7.9% per year).
High Growth Revenue: RY's revenue (5.3% 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 (14.9%).
Next Steps
Past Performance
How has Royal Bank of Canada performed over the past 5 years?
4.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RY has high quality earnings.
Growing Profit Margin: RY's current net profit margins (26.1%) are lower than last year (28.5%).
Past Earnings Growth Analysis
Earnings Trend: RY's earnings have grown by 4.4% per year over the past 5 years.
Accelerating Growth: RY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RY had negative earnings growth (-11.4%) over the past year, making it difficult to compare to the Banks industry average (-11.4%).
Return on Equity
High ROE: RY's Return on Equity (13.2%) is considered low.
Next Steps
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 (18.7x) is moderate.
Allowance for Bad Loans: RY has a sufficient allowance for bad loans (176%).
Low Risk Liabilities: 66% 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 (65%) is appropriate.
Level of Bad Loans: RY has an appropriate level of bad loans (0.5%).
Next Steps
Dividend
What is Royal Bank of Canada current dividend yield, its reliability and sustainability?
4.01%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RY's dividend (3.99%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).
High Dividend: RY's dividend (3.99%) is low compared to the top 25% of dividend payers in the Canadian market (5%).
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 reasonable payout ratio (54.7%), RY's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RY's dividends in 3 years are forecast to be well covered by earnings (45.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Dave McKay (57 yo)
6.42yrs
Tenure
CA$13,693,903
Compensation
Mr. David I. McKay, also known as Dave, has been the President of Royal Bank of Canada since February 26, 2014 and its Chief Executive Officer and Director since August 1, 2014. Mr. McKay is responsible fo...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD10.73M) is above average for companies of similar size in the Canadian market ($USD6.58M).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.42yrs | CA$13.69m | 0.0026% CA$ 4.0m | |
| Chief Financial Officer | 4.08yrs | CA$4.33m | 0.00041% CA$ 631.5k | |
| Group Head of Wealth Management | 15yrs | CA$7.07m | 0.00033% CA$ 508.3k | |
| Group Head of Personal & Commercial Banking | 3.67yrs | CA$4.91m | 0.00043% CA$ 662.3k | |
| Group Head of Technology & Operations | 7yrs | CA$7.89m | 0.00027% CA$ 415.9k | |
| Deputy Chairman of RBC Wealth Management | no data | no data | no data | |
| Chief Administrative & Strategy Officer | 1.08yrs | no data | no data | |
| Senior Vice President of Wholesale Finance & Investor Relations | no data | no data | no data | |
| General Counsel | 5.67yrs | no data | no data | |
| Senior Vice President of Communications | no data | no data | no data | |
| Chief Marketing Officer | 7.83yrs | no data | no data | |
| Group Head of RBC Ventures & Corporate Development | 4.17yrs | no data | 0.00033% CA$ 508.3k |
5.7yrs
Average Tenure
Experienced Management: RY's management team is seasoned and experienced (5.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 6.42yrs | CA$13.69m | 0.0026% CA$ 4.0m | |
| Independent Chairman of the Board | 7.08yrs | CA$525.00k | 0.0022% CA$ 3.4m | |
| Chairman of RBC Europe Ltd | 3.83yrs | no data | no data | |
| Independent Director | 9.58yrs | CA$250.00k | 0.00012% CA$ 184.8k | |
| Independent Director | 15.25yrs | CA$250.00k | 0.0011% CA$ 1.6m | |
| Independent Director | 5yrs | CA$352.58k | 0.00027% CA$ 415.9k | |
| Independent Director | 2yrs | CA$83.33k | 0.00067% CA$ 1.0m | |
| Independent Director | 5.5yrs | CA$262.50k | 0.000080% CA$ 123.2k | |
| Independent Director | 8.42yrs | CA$300.00k | 0.000080% CA$ 123.2k | |
| Independent Director | 6.33yrs | CA$300.00k | 0.00014% CA$ 215.6k | |
| Independent Director | 9.58yrs | CA$250.00k | 0.00011% CA$ 169.4k | |
| Independent Director | 6yrs | CA$300.00k | 0.00010% CA$ 154.0k |
6.4yrs
Average Tenure
61yo
Average Age
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Royal Bank of Canada's company bio, 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$154.019b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RY | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1972 |
| RY | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1972 |
| RY | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Dec 1972 |
| RY N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Dec 1972 |
| RYC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1972 |
| 0QKU | LSE (London Stock Exchange) | Yes | Common Shares | GB | CHF | Dec 1972 |
| RY.PRL | TSX (The Toronto Stock Exchange) | 5YR PFD-AL CV | CA | CAD | Nov 2008 | |
| RY.PRZ | TSX (The Toronto Stock Exchange) | 1ST PFD SER AZ | CA | CAD | Jan 2014 | |
| RY.PRJ | TSX (The Toronto Stock Exchange) | PFD SHS SER BD | CA | CAD | Feb 2015 | |
| RY.PRM | TSX (The Toronto Stock Exchange) | PFD SER BF | CA | CAD | Mar 2015 | |
| RY.PRO | TSX (The Toronto Stock Exchange) | PFD BI NVCC | CA | CAD | Jul 2015 | |
| RY.PRP | TSX (The Toronto Stock Exchange) | 1ST PFD SER BJ | CA | CAD | Oct 2015 | |
| RY.PRT | NYSE (New York Stock Exchange) | DEP 1/40 6.75% C | US | USD | Nov 2015 | |
| RY.PRQ | TSX (The Toronto Stock Exchange) | PFD SER BK | CA | CAD | Dec 2015 | |
| RY.PRR | TSX (The Toronto Stock Exchange) | PDF SER BM | CA | CAD | Mar 2016 | |
| RY.PRS | TSX (The Toronto Stock Exchange) | 1ST PFD SHS BO | CA | CAD | Nov 2018 |
Biography
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 00:38 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/10/31 |
| 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.