RY

Royal Bank of CanadaTSX:RY Stock Report

Market Cap

CA$181.9b

7D

-1.5%

1Y

33.7%

Updated

18 Sep, 2021

Data

Company Financials +
RY fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends5/6

RY Overview

Royal Bank of Canada operates as a diversified financial service company worldwide.

Royal Bank of Canada Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Royal Bank of Canada
Historical stock prices
Current Share PriceCA$127.66
52 Week HighCA$90.75
52 Week LowCA$134.23
Beta0.79
1 Month Change-2.06%
3 Month Change1.35%
1 Year Change33.72%
3 Year Change22.64%
5 Year Change56.83%
Change since IPO1,932.40%

Recent News & Updates

Sep 16
Royal Bank of Canada (TSE:RY) Has Re-Affirmed Its Dividend Of CA$1.08

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...

Sep 02
Royal Bank of Canada (TSE:RY) Has Affirmed Its Dividend Of CA$1.08

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...

Aug 22
With EPS Growth And More, Royal Bank of Canada (TSE:RY) Is Interesting

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

RYCA BanksCA Market
7D-1.5%-0.3%-0.6%
1Y33.7%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

Is RY's price volatile compared to industry and market?
RY volatility
RY Beta0.79
Industry Beta0.92
Market Beta1

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

FoundedEmployeesCEOWebsite
186485,887Dave McKayhttps://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

TodaySep 19 2021Ex Dividend DateOct 25 2021Dividend Pay DateNov 24 202130 days from Ex DividendBuy in the next 36 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


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.