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Royal Bank of Canada

DB:RYC
Snowflake Description

Flawless balance sheet 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RYC
DB
CA$151B
Market Cap
  1. Home
  2. DE
  3. Banks
Company description

Royal Bank of Canada operates as a diversified financial service company worldwide. The last earnings update was 88 days ago. More info.


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RYC Share Price and Events
7 Day Returns
1.8%
DB:RYC
-0.4%
DE Banks
0.3%
DE Market
1 Year Returns
4.9%
DB:RYC
-25.7%
DE Banks
-11.6%
DE Market
RYC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Royal Bank of Canada (RYC) 1.8% -0.5% 3.2% 4.9% 33.2% 38.2%
DE Banks -0.4% -7.4% 6% -25.7% -5.3% -26.9%
DE Market 0.3% -3.8% 2.5% -11.6% 10.1% 7.9%
1 Year Return vs Industry and Market
  • RYC outperformed the Banks industry which returned -25.7% over the past year.
  • RYC outperformed the Market in Germany which returned -11.6% over the past year.
Price Volatility
RYC
Industry
5yr Volatility vs Market

Value

 Is Royal Bank of Canada undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Royal Bank of Canada to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Royal Bank of Canada.

DB:RYC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= CA$58.10 * 16.9%
CA$9.83
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. CA$58.10
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:RYC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.586 (1 + (1- 26.5%) (209.09%))
1.326
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.33
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.326 * 5.96%)
8.13%

Discounted Cash Flow Calculation for DB:RYC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Royal Bank of Canada is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:RYC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.9% – 8.13%) * CA$58.10)
CA$5.11
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CA$5.11 / (8.13% - 0.23%)
CA$64.64
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CA$58.10 + CA$64.64
CA$122.74
DB:RYC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:RYC represents 0.66473x of TSX:RY
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.66473x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 122.74 x 0.66473
€81.59
Value per share (EUR) From above. €81.59
Current discount Discount to share price of €69.93
= -1 x (€69.93 - €81.59) / €81.59
14.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Royal Bank of Canada is available for.
Intrinsic value
14%
Share price is €69.93 vs Future cash flow value of €81.59
Current Discount Checks
For Royal Bank of Canada to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Royal Bank of Canada's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Royal Bank of Canada's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Royal Bank of Canada's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Royal Bank of Canada's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:RYC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in CAD CA$8.53
TSX:RY Share Price ** TSX (2019-05-21) in CAD CA$105.2
Germany Banks Industry PE Ratio Median Figure of 6 Publicly-Listed Banks Companies 15.85x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 20.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Royal Bank of Canada.

DB:RYC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:RY Share Price ÷ EPS (both in CAD)

= 105.2 ÷ 8.53

12.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Bank of Canada is good value based on earnings compared to the DE Banks industry average.
  • Royal Bank of Canada is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Royal Bank of Canada's expected growth come at a high price?
Raw Data
DB:RYC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
5.7%per year
Europe Banks Industry PEG Ratio Median Figure of 114 Publicly-Listed Banks Companies 0.79x
Germany Market PEG Ratio Median Figure of 272 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

DB:RYC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.34x ÷ 5.7%

2.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Bank of Canada is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Royal Bank of Canada's assets?
Raw Data
DB:RYC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in CAD CA$51.67
TSX:RY Share Price * TSX (2019-05-21) in CAD CA$105.2
Germany Banks Industry PB Ratio Median Figure of 6 Publicly-Listed Banks Companies 0.92x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.79x
DB:RYC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:RY Share Price ÷ Book Value per Share (both in CAD)

= 105.2 ÷ 51.67

2.04x

* Primary Listing of Royal Bank of Canada.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Bank of Canada is overvalued based on assets compared to the DE Banks industry average.
X
Value checks
We assess Royal Bank of Canada's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Royal Bank of Canada has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Royal Bank of Canada expected to grow at an attractive rate?
  • Royal Bank of Canada's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Royal Bank of Canada's earnings growth is positive but not above the Germany market average.
  • Royal Bank of Canada's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:RYC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:RYC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 5.7%
DB:RYC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 3.7%
Germany Banks Industry Earnings Growth Rate Market Cap Weighted Average 13.4%
Europe Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:RYC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:RYC Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-10-31 46,991 1
2020-10-31 47,054 13,548 5
2019-10-31 45,406 12,811 6
DB:RYC Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-01-31 41,850 -39,726 12,282
2018-10-31 41,269 -31,275 12,115
2018-07-31 41,242 -25,125 11,696
2018-04-30 40,331 -14,329 11,372
2018-01-31 40,661 1,136 11,117
2017-10-31 39,519 4,429 11,128
2017-07-31 38,527 16,655 10,829
2017-04-30 38,696 -12,175 10,923
2017-01-31 37,652 39,362 10,685
2016-10-31 37,249 7,925 10,111
2016-07-31 35,677 885 10,168
2016-04-30 34,298 -13,964 9,766

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Royal Bank of Canada's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Royal Bank of Canada's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:RYC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Royal Bank of Canada Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RYC Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-10-31 9.97 10.21 9.73 2.00
2020-10-31 9.41 9.56 9.27 8.00
2019-10-31 8.87 9.00 8.76 8.00
DB:RYC Past Financials Data
Date (Data in CAD Millions) EPS *
2019-01-31 8.53
2018-10-31 8.39
2018-07-31 8.08
2018-04-30 7.83
2018-01-31 7.62
2017-10-31 7.59
2017-07-31 7.35
2017-04-30 7.38
2017-01-31 7.19
2016-10-31 6.80
2016-07-31 6.89
2016-04-30 6.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Royal Bank of Canada is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Royal Bank of Canada's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Royal Bank of Canada has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Royal Bank of Canada's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Royal Bank of Canada's year on year earnings growth rate has been positive over the past 5 years.
  • Royal Bank of Canada's 1-year earnings growth exceeds its 5-year average (10.5% vs 7.8%)
  • Royal Bank of Canada's earnings growth has exceeded the DE Banks industry average in the past year (10.5% vs 5.4%).
Earnings and Revenue History
Royal Bank of Canada's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Royal Bank of Canada Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RYC Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 41,850.00 12,282.00 19,613.00
2018-10-31 41,269.00 12,115.00 19,355.00
2018-07-31 41,242.00 11,696.00 19,114.00
2018-04-30 40,331.00 11,372.00 18,918.00
2018-01-31 40,661.00 11,117.00 18,795.00
2017-10-31 39,519.00 11,128.00 18,577.00
2017-07-31 38,527.00 10,829.00 18,418.00
2017-04-30 38,696.00 10,923.00 17,996.00
2017-01-31 37,652.00 10,685.00 17,678.00
2016-10-31 37,249.00 10,111.00 17,406.00
2016-07-31 35,677.00 10,168.00 16,776.00
2016-04-30 34,298.00 9,766.00 16,449.00
2016-01-31 33,780.00 9,706.00 16,315.00
2015-10-31 34,205.00 9,734.00 16,090.00
2015-07-31 34,517.00 9,491.00 15,862.00
2015-04-30 34,666.00 9,389.00 15,746.00
2015-01-31 34,150.00 9,086.00 15,381.00
2014-10-31 32,844.00 8,697.00 15,118.00
2014-07-31 32,492.00 8,441.00 15,029.00
2014-04-30 30,686.00 8,341.00 14,658.00
2014-01-31 30,084.00 8,039.00 14,489.00
2013-10-31 29,445.00 7,991.00 14,113.00
2013-07-31 28,996.00 7,798.00 14,053.00
2013-04-30 29,527.00 7,753.00 13,825.00
2013-01-31 28,673.00 7,405.00 13,529.00
2012-10-31 27,680.00 7,203.00 12,793.00
2012-07-31 27,731.00 6,931.00 12,841.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Royal Bank of Canada has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Royal Bank of Canada used its assets more efficiently than the DE Banks industry average last year based on Return on Assets.
  • Unable to establish if Royal Bank of Canada improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Royal Bank of Canada's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Royal Bank of Canada has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

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

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Royal Bank of Canada's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Royal Bank of Canada Company Filings, last reported 3 months ago.

DB:RYC Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 80,650.00 315,550.00 556,048.00
2018-10-31 79,955.00 306,183.00 540,173.00
2018-07-31 77,872.00 273,381.00 516,193.00
2018-04-30 76,025.00 270,876.00 506,655.00
2018-01-31 73,324.00 296,499.00 507,624.00
2017-10-31 74,428.00 244,476.00 465,173.00
2017-07-31 72,861.00 235,383.00 444,237.00
2017-04-30 73,168.00 236,632.00 451,594.00
2017-01-31 72,151.00 228,607.00 429,694.00
2016-10-31 71,612.00 229,753.00 429,022.00
2016-07-31 69,836.00 256,581.00 461,672.00
2016-04-30 68,126.00 222,617.00 427,872.00
2016-01-31 69,888.00 241,187.00 455,815.00
2015-10-31 63,944.00 198,510.00 404,841.00
2015-07-31 61,898.00 206,693.00 408,060.00
2015-04-30 58,247.00 201,221.00 388,966.00
2015-01-31 57,421.00 242,059.00 439,864.00
2014-10-31 54,503.00 161,172.00 333,625.00
2014-07-31 53,497.00 147,329.00 315,081.00
2014-04-30 51,483.00 143,972.00 318,212.00
2014-01-31 51,515.00 154,728.00 334,754.00
2013-10-31 49,460.00 144,741.00 303,345.00
2013-07-31 48,970.00 154,148.00 354,273.00
2013-04-30 48,023.00 179,451.00 377,007.00
2013-01-31 47,076.00 166,932.00 359,074.00
2012-10-31 46,028.00 169,308.00 345,105.00
2012-07-31 44,925.00 173,273.00 347,920.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Royal Bank of Canada has an acceptable proportion of non-loan assets held.
  • Royal Bank of Canada's liabilities are made up of primarily low risk sources of funding.
  • Loans at Royal Bank of Canada are broadly funded by customer deposits.
  • Royal Bank of Canada's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Royal Bank of Canada has a sufficient allowance for bad loans.
  • Royal Bank of Canada has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Royal Bank of Canada's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Royal Bank of Canada has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.88%
Current annual income from Royal Bank of Canada dividends. Estimated to be 4.04% next year.
If you bought €2,000 of Royal Bank of Canada shares you are expected to receive €78 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Royal Bank of Canada's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Royal Bank of Canada's dividend is above the markets top 25% of dividend payers in Germany (3.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:RYC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Germany Banks Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:RYC Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-10-31 4.64 3.00
2020-10-31 4.33 12.00
2019-10-31 4.06 12.00
DB:RYC Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-22 4.080 3.917
2018-11-28 3.920 4.035
2018-08-22 3.920 3.929
2018-05-24 3.760 3.741
2017-11-29 3.640 3.599
2017-08-23 3.640 3.744
2017-05-25 3.480 3.706
2017-02-24 3.480 3.639
2016-11-30 3.320 3.563
2016-08-24 3.320 3.988
2016-05-26 3.240 4.097
2016-02-24 3.240 4.312
2015-12-02 3.160 4.440
2015-08-26 3.160 4.268
2015-05-28 3.080 4.018
2015-02-25 3.080 3.928
2014-12-03 3.000 3.884
2014-08-22 3.000 3.709
2014-05-22 2.840 3.664
2014-02-26 2.840 3.906
2013-12-05 2.680 3.798
2013-08-29 2.680 3.923
2013-05-30 2.520 4.032
2013-02-28 2.520 4.087
2012-11-29 2.400 3.918
2012-08-30 2.400 4.230
2012-08-15 2.400 4.460
2012-05-24 2.280 4.426
2012-03-01 2.280 4.060
2011-12-02 2.160 4.146
2011-08-26 2.160 4.602
2011-05-27 2.160 4.080
2011-03-03 2.000 3.355
2010-12-03 2.000 3.721
2010-12-02 2.000 3.673
2010-05-27 2.000 3.731
2010-03-03 2.000 3.341
2009-12-04 2.000 3.624
2009-08-27 2.000 3.546
2009-05-29 2.000 4.162

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Royal Bank of Canada's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Royal Bank of Canada's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Royal Bank of Canada afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Royal Bank of Canada has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Royal Bank of Canada's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave McKay
COMPENSATION CA$14,489,977
AGE 55
TENURE AS CEO 4.8 years
CEO Bio

Mr. David I. McKay, also known as Dave, has been the President of Royal Bank of Canada since February 26, 2014 and has been its Chief Executive Officer since August 1, 2014. Mr. McKay is responsible for the overall leadership and management of Royal Bank of Canada, and sets the strategic direction to drive leading performance consistent with the interests of shareholders, clients, employees and other stakeholders. Mr. McKay served as Group Head of Personal & Commercial Banking at Royal Bank of Canada from October 31, 2012 to March 2014 and as its Group Head of Canadian Banking since April 2008 until 2012. At Royal Bank of Canada, he was responsible for Personal Financial Services and Business Financial Services businesses, as well as Canadian sales and branch distribution. He was responsible for continuing Royal Bank's growth momentum in the Canadian banking marketplace and extending its competitive strength by providing over 13 million Canadian clients with leading personal and business financial services. He joined Royal Bank in 1988. Mr. McKay started his career at RBC over 29 years ago and has held progressively senior roles. He served as an Executive Vice President of Personal Financial Services at Royal Bank and was responsible for the personal retail business including consumer lending, home equity, deposits, branch investments and online investing in Canada. Mr. Mckay served as Head of Personal Banking at Royal Bank from October 2005 to October 2006 and as a Senior Vice President of Financing Products from October 2003 to October 2005. He served as Regional Director of Canada Region of Visa, Inc. from October 2007 to January 27, 2011. He has spent more than 20 years with RBC in many different areas including senior management of retail banking, retail banking field roles, commercial account management, group risk management and corporate banking in Canada and Japan. He served as Chairman of Visa Canada Corporation from May 2006 to October 2007. He served as the Chairman of Visa Canada Association from May 2006 to October 2007. He is a member of the Catalyst Canada Advisory Board and the Business Council of Canada. He has been a Director of Royal Bank of Canada since August 1, 2014. He has been a Honorary Director of Visa Inc. since August 2, 2016 and previously served as its Founding Director since October 2007 until January 27, 2011. Mr. Mckay has been a Trustee of The Hospital for Sick Children since 2010. He served as a Member of Advisory Board of RBC Venture Partners. He served as a Director of Visa, Inc. from October 2007 to January 27, 2011 and Visa Canada Corporation from March 2005 to October 2007. He served as a Director of Visa International Service Association from April 2007 to October 2007. He served as Member of Advisory Board at Information Venture Partners. He served as a Director of Visa Canada from March 2005 to October 2007. Mr. McKay holds an M.B.A. degree from the Ivey Business School at University of Western Ontario and a Bachelor of Mathematics Degree from the University of Waterloo.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dave's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Royal Bank of Canada management team in years:

4
Average Tenure
  • The tenure for the Royal Bank of Canada management team is about average.
Management Team

Dave McKay

TITLE
President
COMPENSATION
CA$14M
AGE
55
TENURE
4.8 yrs

Rod Bolger

TITLE
Chief Financial Officer
COMPENSATION
CA$4M
TENURE
2.4 yrs

Doug Guzman

TITLE
Group Head of Wealth Management & Insurance
COMPENSATION
CA$7M
TENURE
13.3 yrs

Neil McLaughlin

TITLE
Group Head of Personal & Commercial Banking
COMPENSATION
CA$4M
TENURE
2 yrs

Doug McGregor

TITLE
Group Head of Capital Markets
COMPENSATION
CA$11M
AGE
61
TENURE
6.6 yrs

Bruce Ross

TITLE
Group Head of Technology & Operations
COMPENSATION
CA$8M
TENURE
5.3 yrs

Gay Mitchell

TITLE
Deputy Chairman of RBC Wealth Management

Jennifer Tory

TITLE
Chief Administrative Officer
COMPENSATION
CA$5M
TENURE
2 yrs

Dave Mun

TITLE
Senior VP of Performance Management & Head of IR
TENURE
2.9 yrs

David Onorato

TITLE
General Counsel
TENURE
4 yrs
Board of Directors Tenure

Average tenure and age of the Royal Bank of Canada board of directors in years:

5.1
Average Tenure
60.5
Average Age
  • The tenure for the Royal Bank of Canada board of directors is about average.
Board of Directors

Katie Taylor

TITLE
Chairman of the Board
COMPENSATION
CA$525K
AGE
61
TENURE
5.4 yrs

Dave McKay

TITLE
President
COMPENSATION
CA$14M
AGE
55
TENURE
4.8 yrs

Jim Pettigrew

TITLE
Chairman of RBC Europe Ltd
AGE
60
TENURE
2.2 yrs

Alice Laberge

TITLE
Independent Director
COMPENSATION
CA$300K
AGE
61
TENURE
13.6 yrs

David Denison

TITLE
Independent Director
COMPENSATION
CA$300K
AGE
66
TENURE
6.8 yrs

Jacynthe Côté

TITLE
Independent Director
COMPENSATION
CA$292K
AGE
59
TENURE
4.7 yrs

Toos Daruvala

TITLE
Independent Director
COMPENSATION
CA$300K
AGE
62
TENURE
4.3 yrs

Michael McCain

TITLE
Independent Director
COMPENSATION
CA$250K
AGE
59
TENURE
13.6 yrs

Heather Munroe-Blum

TITLE
Independent Director
COMPENSATION
CA$258K
AGE
68
TENURE
7.9 yrs

Thierry Vandal

TITLE
Independent Director
COMPENSATION
CA$250K
AGE
57
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • Royal Bank of Canada insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
29. Mar 19 Sell A. McGregor Individual 28. Mar 19 28. Mar 19 -1,500 €67.62 €-101,435
11. Mar 19 Buy Jeffery Yabuki Individual 07. Mar 19 07. Mar 19 300 €68.78 €20,634
08. Feb 19 Buy Jeffery Yabuki Individual 06. Feb 19 06. Feb 19 300 €67.68 €20,303
07. Jan 19 Buy Jeffery Yabuki Individual 03. Jan 19 03. Jan 19 300 €60.45 €18,136
11. Dec 18 Sell A. McGregor Individual 10. Dec 18 10. Dec 18 -10,000 €62.08 €-620,799
11. Dec 18 Buy Jeffery Yabuki Individual 06. Dec 18 06. Dec 18 300 €63.12 €18,936
01. Nov 18 Buy Jeffery Yabuki Individual 01. Nov 18 01. Nov 18 300 €64.50 €19,350
04. Oct 18 Buy Jeffery Yabuki Individual 02. Oct 18 02. Oct 18 300 €69.64 €20,892
07. Sep 18 Buy Jeffery Yabuki Individual 06. Sep 18 06. Sep 18 300 €67.84 €20,351
03. Aug 18 Buy Jeffery Yabuki Individual 02. Aug 18 02. Aug 18 300 €66.90 €20,069
10. Jul 18 Buy Jeffery Yabuki Individual 06. Jul 18 06. Jul 18 300 €63.80 €19,141
19. Jun 18 Sell A. McGregor Individual 18. Jun 18 18. Jun 18 -10,000 €65.32 €-653,247
11. Jun 18 Buy Jeffery Yabuki Individual 07. Jun 18 07. Jun 18 300 €64.92 €19,477
05. Jun 18 Sell A. McGregor Individual 05. Jun 18 05. Jun 18 -15,000 €65.33 €-979,910
30. May 18 Buy Alice Laberge Individual 29. May 18 29. May 18 160 €64.75 €10,360
X
Management checks
We assess Royal Bank of Canada's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Royal Bank of Canada has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Royal Bank of Canada operates as a diversified financial service company worldwide. The company’s Personal & Commercial Banking segment offers check and savings accounts; home equity and auto financing, personal lending, private banking, mutual fund, self-directed brokerage account, and guaranteed investment certificate services; and credit cards, and payment products and solutions for individuals. It also provides lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, and trade products and services to small and medium-sized commercial businesses. In addition, this segment offers international financing and trade promotion services through branches, automated teller machines, and online and mobile banking. The company’s Wealth Management provides investment, trust, banking, credit, and other wealth management solutions to high and ultra-high net worth clients; and asset management products to institutional and individual clients through its distribution channels and third-party distributors. Its Insurance segment offers life, health, home, auto, travel, wealth, annuities, and reinsurance advice and solutions; and creditor and business insurance services to individual, business, and group clients through its field sales force, advice centers, and online, as well as through independent insurance advisors and affinity relationships. The company’s Investor & Treasury Services segment provides asset, cash management, transaction banking, and treasury services to institutional clients; correspondent banking and trade finance services for financial institutions; and short-term funding and liquidity management services. Its Capital Markets segment offers corporate and investment banking, as well as equity and debt origination, distribution, sale, and trading services for corporations, institutional investors, asset managers, governments, and central banks. The company was founded in 1864 and is headquartered in Toronto, Canada.

Details
Name: Royal Bank of Canada
RYC
Exchange: DB
Founded: 1864
CA$100,728,868,290
1,435,682,954
Website: http://www.rbc.com
Address: Royal Bank of Canada
Royal Bank Canada,
200 Bay Street,
Toronto,
Ontario, M5J 2J5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX RY Common Shares The Toronto Stock Exchange CA CAD 13. Dec 1972
NYSE RY Common Shares New York Stock Exchange US USD 13. Dec 1972
DB RYC Common Shares Deutsche Boerse AG DE EUR 13. Dec 1972
LSE 0QKU Common Shares London Stock Exchange GB CHF 13. Dec 1972
SWX RY Common Shares SIX Swiss Exchange CH CHF 13. Dec 1972
BMV RY N Common Shares Bolsa Mexicana de Valores MX MXN 13. Dec 1972
NYSE RY.PRT DEP 1/40 6.75% C New York Stock Exchange US USD 03. Nov 2015
TSX RY.PRO PFD BI NVCC The Toronto Stock Exchange CA CAD 23. Jul 2015
TSX RY.PRJ PFD SHS SER BD The Toronto Stock Exchange CA CAD 02. Feb 2015
TSX RY.PRZ 1ST PFD SER AZ The Toronto Stock Exchange CA CAD 30. Jan 2014
TSX RY.PRL 5YR PFD-AL CV The Toronto Stock Exchange CA CAD 03. Nov 2008
TSX RY.PRM PFD SER BF The Toronto Stock Exchange CA CAD 16. Mar 2015
TSX RY.PRQ PFD SER BK The Toronto Stock Exchange CA CAD 17. Dec 2015
TSX RY.PRC PFD SHS AC The Toronto Stock Exchange CA CAD 01. Nov 2006
TSX RY.PRE PFD 1ST SER AE The Toronto Stock Exchange CA CAD 19. Jan 2007
TSX RY.PRR NCUM 5YR PFD BM The Toronto Stock Exchange CA CAD 08. Mar 2016
TSX RY.PRP 1ST PFD SER BJ The Toronto Stock Exchange CA CAD 05. Oct 2015
OTCPK RBCD.F 5YR PFD-AL CV Pink Sheets LLC US USD 03. Nov 2008
DB A19CMG FR 2.75%020122 Deutsche Boerse AG DE USD 26. Jan 2017
TSX RY.PRS 1ST PFD SHS BO The Toronto Stock Exchange CA CAD 02. Nov 2018
Number of employees
Current staff
Staff numbers
82,108
Royal Bank of Canada employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 21:20
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/02/22
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.