NYSE:RY

Stock Analysis Report

Royal Bank of Canada

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

-1.8%

NYSE:RY

-2.6%

US Banks

-1.0%

US Market


1 Year Return

-4.6%

NYSE:RY

-14.2%

US Banks

-0.4%

US Market

RY outperformed the Banks industry which returned -16.1% over the past year.

RY underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

RYIndustryMarket
7 Day-1.8%-2.6%-1.0%
30 Day-6.0%-5.5%-3.3%
90 Day-3.8%-3.5%0.4%
1 Year-0.8%-4.6%-11.8%-14.2%1.8%-0.4%
3 Year33.6%19.4%42.2%32.4%39.4%30.4%
5 Year23.7%1.8%53.3%36.7%54.2%37.1%

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

Valuation

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

12%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Royal Bank of Canada is good value based on earnings compared to the US Banks industry average.

Royal Bank of Canada is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Royal Bank of Canada is poor value based on expected growth next year.


Price Based on Value of Assets

Royal Bank of Canada is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Royal Bank of Canada's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Royal Bank of Canada's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Royal Bank of Canada's revenue growth is positive but not above the United States of America market average.

Royal Bank of Canada's earnings growth is positive but not above the United States of America market average.

Royal Bank of Canada's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Royal Bank of Canada is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

7.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (9.6% vs 7.7%)

Royal Bank of Canada's earnings growth has not exceeded the US Banks industry average in the past year (9.6% vs 33.2%).


Return on Equity

Royal Bank of Canada has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Royal Bank of Canada used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


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


Financial Institutions Analysis

Royal Bank of Canada has an acceptable proportion of non-loan assets held.

Royal Bank of Canada has a sufficient allowance for bad loans.

Royal Bank of Canada's liabilities are made up of primarily low risk sources of funding.

Royal Bank of Canada's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Royal Bank of Canada are broadly funded by customer deposits.

Royal Bank of Canada has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

4.25%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Royal Bank of Canada's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Royal Bank of Canada's dividend is above the markets top 25% of dividend payers in United States of America (3.9%).

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

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).


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?

4.6yrs

Average management tenure


CEO

Dave McKay (56yo)

5.0yrs

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

Dave's remuneration is about average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

The tenure for the Royal Bank of Canada management team is about average.


Board Age and Tenure

5.7yrs

Average Tenure

62yo

Average Age

The tenure for the Royal Bank of Canada board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$113,84529 Mar 19
A. McGregor
EntityIndividual
Role
Group Head of Capital Markets
Unit Chairman
Shares1,500
Max PriceUS$75.90
BuyUS$23,16311 Mar 19
Jeffery Yabuki
EntityIndividual
Shares300
Max PriceUS$77.21
BuyUS$23,10008 Feb 19
Jeffery Yabuki
EntityIndividual
Shares300
Max PriceUS$77.00
BuyUS$20,68707 Jan 19
Jeffery Yabuki
EntityIndividual
Shares300
Max PriceUS$68.96
BuyUS$21,53311 Dec 18
Jeffery Yabuki
EntityIndividual
Shares300
Max PriceUS$71.78
SellUS$705,69311 Dec 18
A. McGregor
EntityIndividual
Role
Group Head of Capital Markets
Unit Chairman
Shares10,000
Max PriceUS$70.57
BuyUS$22,04701 Nov 18
Jeffery Yabuki
EntityIndividual
Shares300
Max PriceUS$73.49
BuyUS$24,15804 Oct 18
Jeffery Yabuki
EntityIndividual
Shares300
Max PriceUS$80.53
BuyUS$23,64207 Sep 18
Jeffery Yabuki
EntityIndividual
Shares300
Max PriceUS$78.81

Ownership Breakdown


Management Team

  • Jennifer Tory

    Chief Administrative Officer

    • Tenure: 2.3yrs
    • Compensation: CA$4.86m
  • Gay Mitchell

    Deputy Chairman of RBC Wealth Management

  • Rod Bolger

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: CA$4.40m
  • Doug McGregor (62yo)

    Group Head of Capital Markets

    • Tenure: 6.8yrs
    • Compensation: CA$10.76m
  • Nadine Ahn

    Senior VP of Wholesale Finance & Investor Relations

  • Bruce Ross

    Group Head of Technology & Operations

    • Tenure: 5.6yrs
    • Compensation: CA$7.89m
  • David Onorato

    General Counsel

    • Tenure: 4.3yrs
  • Dave McKay (56yo)

    President

    • Tenure: 5.0yrs
    • Compensation: CA$14.49m
  • Neil McLaughlin

    Group Head of Personal & Commercial Banking

    • Tenure: 2.3yrs
    • Compensation: CA$4.49m
  • Doug Guzman

    Group Head of Wealth Management & Insurance

    • Tenure: 13.6yrs
    • Compensation: CA$7.49m

Board Members

  • Toos Daruvala (63yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: CA$300.00k
  • David Denison (67yo)

    Independent Director

    • Tenure: 7.0yrs
    • Compensation: CA$300.00k
  • Doug McGregor (62yo)

    Group Head of Capital Markets

    • Tenure: 5.7yrs
    • Compensation: CA$10.76m
  • Jacynthe Côté (60yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: CA$291.67k
  • Michael McCain (60yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$250.00k
  • Heather Munroe-Blum (69yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: CA$258.33k
  • Dave McKay (56yo)

    President

    • Tenure: 5.0yrs
    • Compensation: CA$14.49m
  • Alice Laberge (62yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$300.00k
  • Jim Pettigrew (61yo)

    Chairman of RBC Europe Ltd

    • Tenure: 2.4yrs
  • Katie Taylor (62yo)

    Chairman of the Board

    • Tenure: 5.7yrs
    • Compensation: CA$525.00k

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
  • Exchange: NYSE
  • Founded: 1864
  • Industry: diversified banks
  • Sector: banks
  • Market Cap: CA$143.082b
  • Listing Market Cap: CA$107.661b
  • Shares outstanding: 1.43b
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0QKULSE (London Stock Exchange)YesCommon SharesGBCHFDec 1972
RY NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
RYSWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1972
RYNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
RYTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
RYCDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
RY.PRJTSX (The Toronto Stock Exchange)PFD SHS SER BDCACADFeb 2015
RY.PRMTSX (The Toronto Stock Exchange)PFD SER BFCACADMar 2015
RY.PRZTSX (The Toronto Stock Exchange)1ST PFD SER AZCACADJan 2014
RY.PRQTSX (The Toronto Stock Exchange)PFD SER BKCACADDec 2015
A19CMGDB (Deutsche Boerse AG)FR 2.75%020122DEUSDJan 2017
RY.PRLTSX (The Toronto Stock Exchange)5YR PFD-AL CVCACADNov 2008
RY.PRSTSX (The Toronto Stock Exchange)1ST PFD SHS BOCACADNov 2018
RBCD.FOTCPK (Pink Sheets LLC)5YR PFD-AL CVUSUSDNov 2008
RY.PRETSX (The Toronto Stock Exchange)PFD 1ST SER AECACADJan 2007
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.PROTSX (The Toronto Stock Exchange)PFD BI NVCCCACADJul 2015
RY.PRRTSX (The Toronto Stock Exchange)NCUM 5YR PFD BMCACADMar 2016
RY.PRCTSX (The Toronto Stock Exchange)PFD SHS ACCACADNov 2006

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 Analysis2019/08/16 23:46
End of Day Share Price2019/08/16 00:00
Earnings2019/04/30
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.