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RY

Royal Bank of Canada TSX:RY Stock Report

Last Price

CA$124.37

Market Cap

CA$173.1b

7D

0.8%

1Y

-1.4%

Updated

02 Oct, 2022

Data

Company Financials +
RY fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends5/6

RY Stock 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$124.37
52 Week HighCA$149.60
52 Week LowCA$118.24
Beta0.76
1 Month Change1.08%
3 Month Change-1.05%
1 Year Change-1.38%
3 Year Change17.50%
5 Year Change26.77%
Change since IPO1,880.02%

Recent News & Updates

Shareholder Returns

RYCA BanksCA Market
7D0.8%-0.5%-0.008%
1Y-1.4%-6.3%-6.6%

Return vs Industry: RY exceeded the Canadian Banks industry which returned -6.3% over the past year.

Return vs Market: RY exceeded the Canadian Market which returned -6.6% over the past year.

Price Volatility

Is RY's price volatile compared to industry and market?
RY volatility
RY Average Weekly Movement2.8%
Banks Industry Average Movement2.8%
Market Average Movement10.0%
10% most volatile stocks in CA Market18.0%
10% least volatile stocks in CA Market3.8%

Stable Share Price: RY is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RY's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186488,541Dave 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, including auto financing, 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.

Royal Bank of Canada Fundamentals Summary

How do Royal Bank of Canada's earnings and revenue compare to its market cap?
RY fundamental statistics
Market CapCA$173.09b
Earnings (TTM)CA$15.56b
Revenue (TTM)CA$48.92b

11.1x

P/E Ratio

1.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RY income statement (TTM)
RevenueCA$48.92b
Cost of RevenueCA$0
Gross ProfitCA$48.92b
Other ExpensesCA$33.36b
EarningsCA$15.56b

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

Nov 30, 2022

Earnings per share (EPS)11.18
Gross Margin100.00%
Net Profit Margin31.80%
Debt/Equity Ratio395.3%

How did RY perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

43%

Payout Ratio

Does RY pay a reliable dividends?

See RY dividend history and benchmarks
When do you need to buy RY by to receive an upcoming dividend?
Royal Bank of Canada dividend dates
Ex Dividend DateOct 25 2022
Dividend Pay DateNov 24 2022
Days until Ex dividend22 days
Days until Dividend pay date52 days

Does RY pay a reliable dividends?

See RY dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is RY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RY?

Other financial metrics that can be useful for relative valuation.

RY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio3.9x

Price to Earnings Ratio vs Peers

How does RY's PE Ratio compare to its peers?

RY PE Ratio vs Peers
The above table shows the PE ratio for RY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.6x
TD Toronto-Dominion Bank
10.7x1.4%CA$153.6b
BMO Bank of Montreal
7.4x-13.9%CA$81.3b
BNS Bank of Nova Scotia
7.7x2.4%CA$78.3b
CM Canadian Imperial Bank of Commerce
8.7x4.8%CA$54.7b
RY Royal Bank of Canada
11.1x2.8%CA$173.1b

Price-To-Earnings vs Peers: RY is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (8.6x).


Price to Earnings Ratio vs Industry

How does RY's PE Ratio compare vs other companies in the North American Banks Industry?

Price-To-Earnings vs Industry: RY is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the North American Banks industry average (9.4x)


Price to Earnings Ratio vs Fair Ratio

What is RY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: RY is good value based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).


Share Price vs Fair Value

What is the Fair Price of RY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RY (CA$124.37) is trading below our estimate of fair value (CA$224.53)

Significantly Below Fair Value: RY is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Royal Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RY's forecast earnings growth (2.8% per year) is above the savings rate (1.6%).

Earnings vs Market: RY's earnings (2.8% per year) are forecast to grow slower than the Canadian market (7.5% per year).

High Growth Earnings: RY's earnings are forecast to grow, but not significantly.

Revenue vs Market: RY's revenue (7.1% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: RY's revenue (7.1% 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 (15.3%).


Discover growth companies

Past Performance

How has Royal Bank of Canada performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RY has high quality earnings.

Growing Profit Margin: RY's current net profit margins (31.8%) are higher than last year (31.2%).


Past Earnings Growth Analysis

Earnings Trend: RY's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: RY's earnings growth over the past year (2.8%) is below its 5-year average (7.4% per year).

Earnings vs Industry: RY earnings growth over the past year (2.8%) underperformed the Banks industry 9.3%.


Return on Equity

High ROE: RY's Return on Equity (15.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Royal Bank of Canada's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: RY's Assets to Equity ratio (17.7x) is moderate.

Allowance for Bad Loans: RY has a sufficient allowance for bad loans (178%).

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 (43%).

Low Risk Deposits: RY's Loans to Deposits ratio (68%) is appropriate.

Level of Bad Loans: RY has an appropriate level of bad loans (0.3%).


Discover healthy companies

Dividend

What is Royal Bank of Canada current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.12%

Current Dividend Yield

Upcoming Dividend Payment

TodayOct 03 2022Ex Dividend DateOct 25 2022Dividend Pay DateNov 24 202230 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Royal Bank of Canada Dividend Yield vs Market
How does Royal Bank of Canada dividend yield compare to the market?
SegmentDividend Yield
Company (Royal Bank of Canada)4.1%
Market Bottom 25% (CA)2.0%
Market Top 25% (CA)6.1%
Industry Average (Banks)4.6%
Analyst forecast in 3 Years (Royal Bank of Canada)4.3%

Notable Dividend: RY's dividend (4.12%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: RY's dividend (4.12%) is low compared to the top 25% of dividend payers in the Canadian market (6.08%).


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

Earnings Coverage: With its reasonably low payout ratio (43.2%), 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 (47.8% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Dave McKay (59 yo)

8.17yrs

Tenure

CA$16,671,877

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

Dave McKay's Compensation vs Royal Bank of Canada Earnings
How has Dave McKay's remuneration changed compared to Royal Bank of Canada's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 31 2022n/an/a

CA$16b

Apr 30 2022n/an/a

CA$16b

Jan 31 2022n/an/a

CA$16b

Oct 31 2021CA$17mCA$2m

CA$16b

Jul 31 2021n/an/a

CA$15b

Apr 30 2021n/an/a

CA$14b

Jan 31 2021n/an/a

CA$12b

Oct 31 2020CA$13mCA$2m

CA$11b

Jul 31 2020n/an/a

CA$11b

Apr 30 2020n/an/a

CA$11b

Jan 31 2020n/an/a

CA$13b

Oct 31 2019CA$14mCA$2m

CA$13b

Jul 31 2019n/an/a

CA$13b

Apr 30 2019n/an/a

CA$12b

Jan 31 2019n/an/a

CA$12b

Oct 31 2018CA$14mCA$2m

CA$12b

Jul 31 2018n/an/a

CA$12b

Apr 30 2018n/an/a

CA$11b

Jan 31 2018n/an/a

CA$11b

Oct 31 2017CA$13mCA$2m

CA$11b

Jul 31 2017n/an/a

CA$11b

Apr 30 2017n/an/a

CA$11b

Jan 31 2017n/an/a

CA$11b

Oct 31 2016CA$12mCA$1m

CA$10b

Jul 31 2016n/an/a

CA$10b

Apr 30 2016n/an/a

CA$10b

Jan 31 2016n/an/a

CA$10b

Oct 31 2015CA$12mCA$1m

CA$10b

Compensation vs Market: Dave's total compensation ($USD12.14M) is above average for companies of similar size in the Canadian market ($USD8.12M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RY's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: RY's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

TSX:RY Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
30 Aug 22BuyCA$16,242Thierry VandalIndividual131CA$124.00

Ownership Breakdown

What is the ownership structure of RY?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders160,5350.01%
Institutions632,653,63045.5%
General Public758,898,13354.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 34.37% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
4.74%
BMO Asset Management Corp.
65,946,059CA$8.2b4.41%3.7%
3.55%
The Vanguard Group, Inc.
49,461,322CA$6.2b1.92%0.11%
2.79%
RBC Global Asset Management Inc.
38,847,779CA$4.8b-0.65%2.71%
2.35%
RBC Dominion Securities Inc., Asset Management Arm
32,734,085CA$4.1b4.69%4.37%
2.03%
TD Asset Management, Inc.
28,271,407CA$3.5b-1.91%2.54%
2.01%
Mackenzie Financial Corporation
28,041,596CA$3.5b0.09%3.25%
1.83%
Fidelity International Ltd
25,406,430CA$3.2b-6.37%1.24%
1.41%
Canadian Imperial Bank of Commerce, Asset Management Arm
19,616,241CA$2.4b6.38%7.37%
1.36%
The Bank of Nova Scotia, Banking Investments
18,871,168CA$2.3b-3.85%4.5%
1.34%
Wellington Management Group LLP
18,633,272CA$2.3b-6.06%0.31%
1.31%
1832 Asset Management L.P.
18,275,906CA$2.3b-0.57%2.66%
1.14%
FMR LLC
15,897,221CA$2.0b2.17%0.14%
1.11%
Norges Bank Investment Management
15,402,951CA$1.9b0%0.19%
1.03%
Toronto-Dominion Bank, Banking Investments
14,273,878CA$1.8b21.61%2.76%
0.97%
CIBC Asset Management Inc.
13,461,034CA$1.7b-7.15%3.16%
0.79%
Beutel Goodman & Company Ltd.
10,964,546CA$1.4b-2.32%5.78%
0.66%
Manulife Asset Management
9,207,468CA$1.1b4.47%0.8%
0.64%
Connor, Clark & Lunn Investment Management Ltd.
8,950,335CA$1.1b-9.88%4.81%
0.6%
Legal & General Investment Management Limited
8,400,941CA$1.0b10.28%0.23%
0.6%
IG Investment Management, Ltd.
8,321,884CA$1.0b0%2.42%
0.57%
Scotiabank Global Banking and Markets, Asset Management Division
7,891,351CA$981.4m3.07%5.78%
0.46%
CPP Investments
6,415,800CA$797.9m43.18%0.59%
0.41%
J.P. Morgan Asset Management, Inc.
5,767,013CA$717.2m1.65%0.1%
0.33%
Fiera Capital Corporation
4,652,310CA$578.6m3.65%0.59%
0.33%
National Bank Investments Inc.
4,603,096CA$572.5m-0.08%1.8%

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
  • Implied Market Cap: CA$173.087b
  • Shares outstanding: 1.39b
  • Website: https://www.rbc.com

Number of Employees


Location

  • Royal Bank of Canada
  • 200 Bay Street
  • Toronto
  • Ontario
  • M5J 2J5
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
RYTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
RYSWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1972
RY NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
RYCDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
0QKULSE (London Stock Exchange)YesCommon SharesGBUSDDec 1972
RY.PRZTSX (The Toronto Stock Exchange)1ST PFD SER AZCACADJan 2014
RY.PRJTSX (The Toronto Stock Exchange)PFD SHS SER BDCACADFeb 2015
RBCP.FOTCPK (Pink Sheets LLC)PFD SHS SER BDUSUSDFeb 2015
RY.PRMTSX (The Toronto Stock Exchange)PFD SER BFCACADMar 2015
RY.PROTSX (The Toronto Stock Exchange)PFD BI NVCCCACADJul 2015
RY.PRTNYSE (New York Stock Exchange)DEP 1/40 6.75% CUSUSDNov 2015
RY.PRSTSX (The Toronto Stock Exchange)1ST PFD SHS BOCACADNov 2018

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/07/31
Annual Earnings2021/10/31


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.