NYSE:RY.PRT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Royal Bank of Canada's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

RY.PRT

2.9%

US Banks

0.07%

US Market


1 Year Return

-6.3%

RY.PRT

8.6%

US Banks

8.9%

US Market

Return vs Industry: RY.PRT underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: RY.PRT underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

RY.PRTIndustryMarket
7 Day2.2%2.9%0.07%
30 Day1.0%3.4%-0.3%
90 Day-2.7%2.1%-1.6%
1 Year-1.0%-6.3%11.8%8.6%11.3%8.9%
3 Year18.1%-0.2%54.8%44.1%46.3%36.8%
5 Yearn/a70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

How volatile is Royal Bank of Canada's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

12.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RY.PRT ($29.99) is trading above our estimate of fair value ($29.96)

Significantly Below Fair Value: RY.PRT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RY.PRT is good value based on its PE Ratio (12.2x) compared to the Banks industry average (12.6x).

PE vs Market: RY.PRT is good value based on its PE Ratio (12.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RY.PRT is overvalued based on its PB Ratio (2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Royal Bank of Canada forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RY.PRT's forecast earnings growth (3.8% per year) is above the savings rate (2.7%).

Earnings vs Market: RY.PRT's earnings (3.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: RY.PRT's revenue (2.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RY.PRT's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RY.PRT's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

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

7.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RY.PRT's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: RY.PRT's earnings growth over the past year (8%) exceeds its 5-year average (7.6% per year).

Earnings vs Industry: RY.PRT earnings growth over the past year (8%) underperformed the Banks industry 29.7%.


Return on Equity

High ROE: RY.PRT's Return on Equity (15.7%) is considered low.


Return on Assets

ROA vs Industry: RY.PRT's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate RY.PRT's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

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

Inventory Level: RY.PRT has a low level of unsold assets or inventory.

Debt Coverage by Assets: RY.PRT's debt is covered by short term assets (assets are 1.910060x debt).


Financial Institutions Analysis

Asset Level: RY.PRT's level of assets compared to its equity is moderate.

Allowance for Bad Loans: RY.PRT has a sufficient allowance for bad loans.

Low Risk Liabilities: RY.PRT's liabilities are made up of primarily low risk sources of funding.

Loan Level: RY.PRT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RY.PRT's loans are broadly funded by customer deposits.

Level of Bad Loans: RY.PRT has an appropriate level of bad loans (0.49%)


Next Steps

Dividend

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

3.91%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Royal Bank of Canada before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RY.PRT's dividend (3.92%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: RY.PRT's dividend (3.92%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: RY.PRT's dividends per share have been stable in the past 10 years.

Growing Dividend: RY.PRT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.5%), RY.PRT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RY.PRT's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Dave McKay (56yo)

5.2yrs

Tenure

CA$14,489,977

Compensation

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 th ...


CEO Compensation Analysis

Compensation vs. Market: Dave's total compensation ($USD11.07M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: RY.PRT's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: RY.PRT's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Doug McGregor (62yo)

    Group Head of Capital Markets

    • Tenure: 5.8yrs
    • Compensation: CA$10.76m
  • Gay Mitchell

    Deputy Chairman of RBC Wealth Management

    • Tenure: 0yrs
  • Jennifer Tory

    Chief Administrative Officer

    • Tenure: 2.4yrs
    • Compensation: CA$4.86m
  • Dave McKay (56yo)

    President

    • Tenure: 5.2yrs
    • Compensation: CA$14.49m
  • David Onorato

    General Counsel

    • Tenure: 4.4yrs
  • Doug Guzman

    Group Head of Wealth Management & Insurance

    • Tenure: 13.8yrs
    • Compensation: CA$7.49m
  • Bruce Ross

    Group Head of Technology & Operations

    • Tenure: 5.8yrs
    • Compensation: CA$7.89m
  • Neil McLaughlin

    Group Head of Personal & Commercial Banking

    • Tenure: 2.4yrs
    • Compensation: CA$4.49m
  • Nadine Ahn

    Senior VP of Wholesale Finance & Investor Relations

    • Tenure: 0yrs
  • Rod Bolger

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: CA$4.40m

Board Members

  • Katie Taylor (62yo)

    Independent Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: CA$525.00k
  • Jim Pettigrew (61yo)

    Chairman of RBC Europe Ltd

    • Tenure: 2.6yrs
  • Heather Munroe-Blum (69yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$258.33k
  • Alice Laberge (62yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: CA$300.00k
  • Michael McCain (60yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: CA$250.00k
  • Doug McGregor (62yo)

    Group Head of Capital Markets

    • Tenure: 5.8yrs
    • Compensation: CA$10.76m
  • David Denison (67yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: CA$300.00k
  • Jacynthe Côté (60yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: CA$291.67k
  • Dave McKay (56yo)

    President

    • Tenure: 5.2yrs
    • Compensation: CA$14.49m
  • Toos Daruvala (63yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: CA$300.00k

Company Information

Royal Bank of Canada's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Bank of Canada
  • Ticker: RY.PRT
  • Exchange: NYSE
  • Founded: 1864
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$153.835b
  • Listing Market Cap: CA$117.560b
  • Shares outstanding: 1.43b
  • Website: https://www.rbc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
RYSWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1972
RY NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
RYCDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
RYTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
0QKULSE (London Stock Exchange)YesCommon SharesGBCHFDec 1972
RY.PRCTSX (The Toronto Stock Exchange)PFD SHS ACCACADNov 2006
RY.PRETSX (The Toronto Stock Exchange)PFD 1ST SER AECACADJan 2007
RBCD.FOTCPK (Pink Sheets LLC)5YR PFD-AL CVUSUSDNov 2008
RY.PRLTSX (The Toronto Stock Exchange)5YR PFD-AL CVCACADNov 2008
RY.PRZTSX (The Toronto Stock Exchange)1ST PFD SER AZCACADJan 2014
RY.PRJTSX (The Toronto Stock Exchange)PFD SHS SER BDCACADFeb 2015
RY.PRMTSX (The Toronto Stock Exchange)PFD SER BFCACADMar 2015
RY.PROTSX (The Toronto Stock Exchange)PFD BI NVCCCACADJul 2015
RY.PRPTSX (The Toronto Stock Exchange)1ST PFD SER BJCACADOct 2015
RY.PRTNYSE (New York Stock Exchange)DEP 1/40 6.75% CUSUSDNov 2015
RY.PRQTSX (The Toronto Stock Exchange)PFD SER BKCACADDec 2015
RYMT.FOTCPK (Pink Sheets LLC)NCUM 5YR PFD BMUSCADMar 2016
A19CMGDB (Deutsche Boerse AG)2.75% SNR MTN 01/02/2022 USD 'G'DEUSDJan 2017
RY.PRSTSX (The Toronto Stock Exchange)1ST PFD SHS BOCACADNov 2018

Biography

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, pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:26
End of Day Share Price2019/10/22 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.