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RY

Royal Bank of Canada TSX:RY Stock Report

Last Price

CA$124.21

Market Cap

CA$174.2b

7D

-0.02%

1Y

-4.7%

Updated

09 Aug, 2022

Data

Company Financials +
RY fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends4/6

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$124.21
52 Week HighCA$149.60
52 Week LowCA$118.24
Beta0.76
1 Month Change-2.63%
3 Month Change-1.73%
1 Year Change-4.72%
3 Year Change23.33%
5 Year Change33.09%
Change since IPO1,877.47%

Recent News & Updates

Jul 14
Royal Bank of Canada (TSE:RY) Is Increasing Its Dividend To CA$1.28

Royal Bank of Canada (TSE:RY) Is Increasing Its Dividend To CA$1.28

Royal Bank of Canada's ( TSE:RY ) dividend will be increasing from last year's payment of the same period to CA$1.28 on...

Shareholder Returns

RYCA BanksCA Market
7D-0.02%0.2%0.3%
1Y-4.7%-4.7%-2.0%

Return vs Industry: RY underperformed the Canadian Banks industry which returned -3.3% over the past year.

Return vs Market: RY underperformed the Canadian Market which returned -1.2% over the past year.

Price Volatility

Is RY's price volatile compared to industry and market?
RY volatility
RY Average Weekly Movement2.6%
Banks Industry Average Movement3.1%
Market Average Movement10.8%
10% most volatile stocks in CA Market19.4%
10% least volatile stocks in CA Market4.3%

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
186486,007Dave 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$174.16b
Earnings (TTM)CA$16.28b
Revenue (TTM)CA$50.42b

10.7x

P/E Ratio

1.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RY income statement (TTM)
RevenueCA$50.42b
Cost of RevenueCA$0
Gross ProfitCA$50.42b
Other ExpensesCA$34.15b
EarningsCA$16.28b

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)11.61
Gross Margin100.00%
Net Profit Margin32.28%
Debt/Equity Ratio422.5%

How did RY perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

40%

Payout Ratio
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 Ratio3.7x

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 Average8.9x
TD Toronto-Dominion Bank
10.2x2.4%CA$149.3b
BNS Bank of Nova Scotia
9.2x2.5%CA$92.7b
BMO Bank of Montreal
7.2x-6.8%CA$85.3b
CM Canadian Imperial Bank of Commerce
9.2x8.7%CA$58.4b
RY Royal Bank of Canada
10.7x2.9%CA$174.2b

Price-To-Earnings vs Peers: RY is expensive based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (8.9x).


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 (10.7x) compared to the Canadian Banks industry average (9.3x)


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 Ratio10.7x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: RY is good value based on its Price-To-Earnings Ratio (10.7x) 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$124.21) is trading below our estimate of fair value (CA$227.92)

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.


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Future Growth

How is Royal Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 9 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


2.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RY's forecast earnings growth (2.9% per year) is above the savings rate (1.6%).

Earnings vs Market: RY's earnings (2.9% per year) are forecast to grow slower than the Canadian market (7.6% per year).

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

Revenue vs Market: RY's revenue (7% per year) is forecast to grow faster than the Canadian market (6.3% per year).

High Growth Revenue: RY's revenue (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 (16.5%).


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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


7.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RY has high quality earnings.

Growing Profit Margin: RY's current net profit margins (32.3%) are higher than last year (29.6%).


Past Earnings Growth Analysis

Earnings Trend: RY's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: RY's earnings growth over the past year (16%) exceeds its 5-year average (7.1% per year).

Earnings vs Industry: RY earnings growth over the past year (16%) underperformed the Banks industry 20.1%.


Return on Equity

High ROE: RY's Return on Equity (15.8%) 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 (167%).

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 (42%).

Low Risk Deposits: RY's Loans to Deposits ratio (67%) is appropriate.

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


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.12%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RY's dividend (4.12%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: RY's dividend (4.12%) is low compared to the top 25% of dividend payers in the Canadian market (5.36%).


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 (39.8%), RY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.


Discover strong dividend paying companies

Management

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

2.8yrs

Average management tenure


CEO

Dave McKay (59 yo)

8.5yrs

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 ($USD12.94M) is above average for companies of similar size in the Canadian market ($USD7.95M).

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 (2.8 years average tenure).


Board Members

Experienced Board: RY's board of directors are considered experienced (7.8 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$174.156b
  • Shares outstanding: 1.40b
  • Website: https://www.rbc.com

Number of Employees


Location

  • Royal Bank of Canada
  • 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 Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/04/30
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.