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RY

Royal Bank of Canada TSX:RY Stock Report

Last Price

CA$126.62

Market Cap

CA$178.3b

7D

-2.3%

1Y

3.9%

Updated

15 May, 2022

Data

Company Financials +
RY fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
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$126.62
52 Week HighCA$149.60
52 Week LowCA$121.26
Beta0.78
1 Month Change-7.48%
3 Month Change-12.68%
1 Year Change3.91%
3 Year Change20.45%
5 Year Change36.12%
Change since IPO1,915.84%

Recent News & Updates

May 08
Here's Why I Think Royal Bank of Canada (TSE:RY) Is An Interesting Stock

Here's Why I Think Royal Bank of Canada (TSE:RY) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

RYCA BanksCA Market
7D-2.3%-1.7%-3.0%
1Y3.9%4.0%4.2%

Return vs Industry: RY matched the Canadian Banks industry which returned 4% over the past year.

Return vs Market: RY matched the Canadian Market which returned 4.2% over the past year.

Price Volatility

Is RY's price volatile compared to industry and market?
RY volatility
RY Average Weekly Movement2.5%
Banks Industry Average Movement2.9%
Market Average Movement9.6%
10% most volatile stocks in CA Market16.4%
10% least volatile stocks in CA Market4.2%

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.

About the Company

FoundedEmployeesCEOWebsite
186485,211Dave 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$178.34b
Earnings (TTM)CA$16.03b
Revenue (TTM)CA$50.57b

11.1x

P/E Ratio

1.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RY income statement (TTM)
RevenueCA$50.57b
Cost of RevenueCA$0
Gross ProfitCA$50.57b
Other ExpensesCA$34.54b
EarningsCA$16.03b

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

May 26, 2022

Earnings per share (EPS)11.38
Gross Margin100.00%
Net Profit Margin31.70%
Debt/Equity Ratio356.5%

How did RY perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Royal Bank of Canada undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


43.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RY (CA$126.62) is trading below our estimate of fair value (CA$222.93)

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 (11.1x) compared to the Canadian Banks industry average (10.5x).

PE vs Market: RY is good value based on its PE Ratio (11.1x) compared to the Canadian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: RY is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: RY is overvalued based on its PB Ratio (1.9x) compared to the CA Banks industry average (1.4x).


Future Growth

How is Royal Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 10 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


3.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RY's forecast earnings growth (3.5% per year) is above the savings rate (1.6%).

Earnings vs Market: RY's earnings (3.5% 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 (6.7% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: RY's revenue (6.7% 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 (15.5%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RY has high quality earnings.

Growing Profit Margin: RY's current net profit margins (31.7%) are higher than last year (26.6%).


Past Earnings Growth Analysis

Earnings Trend: RY's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: RY's earnings growth over the past year (39.3%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: RY earnings growth over the past year (39.3%) underperformed the Banks industry 39.3%.


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 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 (17.2x) is moderate.

Allowance for Bad Loans: RY has a sufficient allowance for bad loans (189%).

Low Risk Liabilities: 69% 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 (42%).

Low Risk Deposits: RY's Loans to Deposits ratio (65%) is appropriate.

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


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


3.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RY's dividend (3.79%) is higher than the bottom 25% of dividend payers in the Canadian market (1.9%).

High Dividend: RY's dividend (3.79%) is low compared to the top 25% of dividend payers in the Canadian market (5.01%).


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 (39.4%), 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 (42.7% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Dave McKay (58 yo)

8.25yrs

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

Compensation vs Market: Dave's total compensation ($USD12.89M) is above average for companies of similar size in the Canadian market ($USD7.24M).

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 (3.7 years average tenure).


Board Members

Experienced Board: RY's board of directors are considered experienced (7.5 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
  • Implied Market Cap: CA$178.344b
  • Shares outstanding: 1.41b
  • 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 Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/01/31
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.