OTCPK:RYFL

Stock Analysis Report

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Executive Summary

Royal Financial Inc., through its subsidiary Royal Savings Bank, provides commercial and retail banking services to individuals and businesses.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RYFL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

RYFL

12.9%

US Mortgage

1.2%

US Market


1 Year Return

-26.1%

RYFL

-16.2%

US Mortgage

16.8%

US Market

Return vs Industry: RYFL underperformed the US Mortgage industry which returned -17.4% over the past year.

Return vs Market: RYFL underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

RYFLIndustryMarket
7 Day-0.4%12.9%1.2%
30 Day-1.3%-1.4%4.9%
90 Day-2.9%45.3%20.0%
1 Year-26.1%-26.1%-14.0%-16.2%19.3%16.8%
3 Year-7.5%-7.5%-1.3%-8.3%43.7%34.4%
5 Year26.6%26.6%10.3%-1.8%75.5%56.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Royal Financial undervalued compared to its fair value and its price relative to the market?

14.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RYFL ($11.65) is trading above our estimate of fair value ($8.12)

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


Price To Earnings Ratio

PE vs Industry: RYFL is poor value based on its PE Ratio (14.6x) compared to the US Mortgage industry average (11.3x).

PE vs Market: RYFL is good value based on its PE Ratio (14.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RYFL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RYFL's PB Ratio (0.7x) is in line with the US Mortgage industry average.


Next Steps

Future Growth

How is Royal Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.9%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Royal Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Royal Financial performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RYFL has high quality earnings.

Growing Profit Margin: RYFL's current net profit margins (15.2%) are lower than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: RYFL's earnings have declined by 7.8% per year over the past 5 years.

Accelerating Growth: RYFL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RYFL had negative earnings growth (-44.9%) over the past year, making it difficult to compare to the Mortgage industry average (7.2%).


Return on Equity

High ROE: RYFL's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Royal Financial'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

Asset Level: RYFL's Assets to Equity ratio (10.1x) is moderate.

Allowance for Bad Loans: RYFL has a sufficient allowance for bad loans (131%).

Low Risk Liabilities: 95% of RYFL's liabilities are made up of primarily low risk sources of funding.

Loan Level: RYFL has an appropriate level of Loans to Assets ratio (82%).

Low Risk Deposits: RYFL's Loans to Deposits ratio (96%) is appropriate.

Level of Bad Loans: RYFL has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

What is Royal Financial current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RYFL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RYFL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RYFL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RYFL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RYFL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

10.6yrs

Average management tenure


CEO

Len Szwajkowski (57 yo)

13.17yrs

Tenure

US$431,831

Compensation

Mr. Leonard S. Szwajkowski, also known as Len, has been Director, President and Chief Executive Officer of Royal Financial, Inc. and Royal Savings Bank since October 4, 2007. He served as Interim Chief Fin ...


CEO Compensation Analysis

Compensation vs Market: Len's total compensation ($USD431.83K) is about average for companies of similar size in the US market ($USD593.60K).

Compensation vs Earnings: Len's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Leonard Szwajkowski
President13.17yrsUS$431.83kno data
Colleen Thomiszer
Senior VP & CFO0.42yrUS$166.25kno data
Toni Gonzalez
Senior VP & COO10.58yrsUS$189.15kno data
Andrew Morua
Senior Vice President of Lending & Chief Lending Officer17.08yrsUS$239.69kno data
Richard Nichols
Senior VP2.58yrsUS$216.10kno data

10.6yrs

Average Tenure

46yo

Average Age

Experienced Management: RYFL's management team is seasoned and experienced (10.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leonard Szwajkowski
President13.17yrsUS$431.83kno data
John Dempsey
Independent Director15.67yrsUS$46.29kno data
Phillip Timyan
Independent Director9.33yrsUS$46.29kno data
James Fitch
Independent Chairman of the Board12.83yrsUS$63.83kno data
C. McLaren
Independent Director12.08yrsUS$46.29kno data
Roger Hupe
Independent Director10.83yrsUS$46.29kno data
Robert Youman
Independent Director2.83yrsUS$40.41kno data

12.1yrs

Average Tenure

65yo

Average Age

Experienced Board: RYFL's board of directors are seasoned and experienced ( 12.1 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 Financial Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Financial Inc.
  • Ticker: RYFL
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$29.796m
  • Shares outstanding: 2.56m
  • Website: https://www.royalbankweb.com

Location

  • Royal Financial Inc.
  • 9226 South Commercial Avenue
  • Chicago
  • Illinois
  • 60617
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYFLOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2005

Biography

Royal Financial Inc., through its subsidiary Royal Savings Bank, provides commercial and retail banking services to individuals and businesses. The company offers savings, NOW, non-interest bearing checkin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:37
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.