Overview Dividends

(RY) Royal Bank of Canada - Ratings and Ratios

Exchange: NYSE • Country: Canada • Currency: USD • Type: Common Stock • ISIN: CA7800871021

Banking, Lending, Credit, Mortgages, Wealth

RY EPS (Earnings per Share)

EPS Growth (3Y CAGR): 12.46%
EPS Trend (3Y Correlation): 74.0%

RY Revenue

Revenue Growth (3Y CAGR): 19.73%
Revenue Trend (3Y Correlation): 85.1%

Description: RY Royal Bank of Canada

Royal Bank of Canada (NYSE:RY) is a globally diversified financial-services firm headquartered in Toronto. Its business is organized into five core segments: Personal Banking (home-equity loans, credit cards, deposits, auto financing, etc.), Commercial Banking (lending, deposit, and transaction services for businesses), Wealth Management (investment, trust, and advisory solutions for individuals and institutions), Insurance (life, health, property-casualty, annuities, and reinsurance through digital platforms and broker networks), and Capital Markets (advisory, origination, sales-trading, and financing for corporates, asset managers, private-equity firms, and governments).

Key recent data points that shape RY’s outlook include a Q3 2024 net income of CAD 5.2 billion, a return on equity (ROE) of 15.8 %-well above the Canadian banking average of ~13 %-and a Common Equity Tier 1 (CET1) capital ratio of 13.6 %, providing a solid buffer against credit-cycle stress. The bank’s earnings are highly sensitive to the Bank of Canada’s policy rate; the current 5.0 % rate supports net interest income but also pressures mortgage-originated loan growth amid a cooling Canadian housing market. Additionally, the ongoing shift toward digital banking is driving cost-to-income efficiencies, with RY reporting a 6 % reduction in operating expense ratio year-over-year.

If you want a deeper, data-rich view of how these dynamics translate into valuation signals, a quick look at ValueRay’s analyst dashboards can help you spot any mispricings before the next earnings cycle.

RY Stock Overview

Market Cap in USD	204,714m
Sub-Industry	Diversified Banks
IPO / Inception	1995-10-16

RY Stock Ratings

Growth Rating	83.0%
Fundamental	67.2%
Dividend Rating	71.5%
Return 12m vs S&P 500	4.47%
Analyst Rating	4.31 of 5

RY Dividends

Dividend Yield 12m	3.61%
Yield on Cost 5y	8.67%
Annual Growth 5y	6.60%
Payout Consistency	99.3%
Payout Ratio	31.7%

RY Growth Ratios

Growth Correlation 3m	82.7%
Growth Correlation 12m	70.2%
Growth Correlation 5y	76.9%
CAGR 5y	22.30%
CAGR/Max DD 3y (Calmar Ratio)	0.99
CAGR/Mean DD 3y (Pain Ratio)	4.79
Sharpe Ratio 12m	0.65
Alpha	3.51
Beta	1.028
Volatility	15.41%
Current Volume	757.2k
Average Volume 20d	875.6k
Stop Loss	142.5 (-3%)
Signal	0.54

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (19.15b TTM) > 0 and > 6% of Revenue (6% = 8.18b TTM)

FCFTA 0.04 (>2.0%) and ΔFCFTA 4.17pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -747.4% (prev -786.6%; Δ 39.21pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.04 (>3.0%) and CFO 87.17b > Net Income 19.15b (YES >=105%, WARN >=100%)

Net Debt (681.91b) to EBITDA (27.18b) ratio: 25.09 <= 3.0 (WARN <= 3.5)

Current Ratio 0.30 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (1.41b) change vs 12m ago -0.46% (target <= -2.0% for YES)

Gross Margin 44.14% (prev 39.88%; Δ 4.26pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 6.34% (prev 6.35%; Δ -0.01pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.33 (EBITDA TTM 27.18b / Interest Expense TTM 72.01b) >= 6 (WARN >= 3)

Altman Z'' -2.73

(A) -0.46 = (Total Current Assets 440.33b - Total Current Liabilities 1459.78b) / Total Assets 2227.89b

(B) 0.04 = Retained Earnings (Balance) 94.97b / Total Assets 2227.89b

(D) 0.06 = Book Value of Equity 115.89b / Total Liabilities 2092.26b

Total Rating: -2.73 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 67.23

1. Piotroski 4.50pt = -0.50

2. FCF Yield 13.32% = 5.0

3. FCF Margin 62.17% = 7.50

4. Debt/Equity 5.83 = -2.50

5. Debt/Ebitda 25.09 = -2.50

6. ROIC - WACC (= -0.85)% = -1.06

7. RoE 14.50% = 1.21

8. Rev. Trend 85.14% = 6.39

9. EPS Trend 73.96% = 3.70

What is the price of RY shares?

As of October 21, 2025, the stock is trading at USD 146.94 with a total of 757,245 shares traded.
Over the past week, the price has changed by +1.63%, over one month by -1.12%, over three months by +10.91% and over the past year by +21.63%.

Is Royal Bank of Canada a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Royal Bank of Canada (NYSE:RY) is currently (October 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 67.23 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of RY is around 165.67 USD . This means that RY is currently undervalued and has a potential upside of +12.75% (Margin of Safety).

Is RY a buy, sell or hold?

Royal Bank of Canada has received a consensus analysts rating of 4.31. Therefore, it is recommended to buy RY.

Strong Buy: 8
Buy: 5
Hold: 3
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the RY price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	146.6	-0.2%
Analysts Target Price	146.6	-0.2%
ValueRay Target Price	177.1	20.5%

Last update: 2025-10-10 03:53

RY Fundamental Data Overview

Market Cap CAD = 287.23b (204.71b USD * 1.4031 USD.CAD)
P/E Trailing = 15.3157
P/E Forward = 13.587
P/S = 3.3963
P/B = 2.3182
P/EG = 2.0031
Beta = 1.028
Revenue TTM = 136.41b CAD
EBIT TTM = 24.04b CAD
EBITDA TTM = 27.18b CAD
Long Term Debt = 348.89b CAD (from longTermDebt, last quarter)
Short Term Debt = 440.78b CAD (from shortTermDebt, last quarter)
Debt = 789.67b CAD (from shortLongTermDebtTotal, last quarter)
Net Debt = 681.91b CAD (from netDebt column, last quarter)
Enterprise Value = 636.57b CAD (287.23b + Debt 789.67b - CCE 440.33b)
Interest Coverage Ratio = 0.33 (Ebit TTM 24.04b / Interest Expense TTM 72.01b)
FCF Yield = 13.32% (FCF TTM 84.81b / Enterprise Value 636.57b)
FCF Margin = 62.17% (FCF TTM 84.81b / Revenue TTM 136.41b)
Net Margin = 14.04% (Net Income TTM 19.15b / Revenue TTM 136.41b)
Gross Margin = 44.14% ((Revenue TTM 136.41b - Cost of Revenue TTM 76.20b) / Revenue TTM)
Gross Margin QoQ = 46.31% (prev 43.70%)
Tobins Q-Ratio = 0.29 (Enterprise Value 636.57b / Total Assets 2227.89b)
Interest Expense / Debt = 2.25% (Interest Expense 17.76b / Debt 789.67b)
Taxrate = 21.22% (1.46b / 6.87b)
NOPAT = 18.94b (EBIT 24.04b * (1 - 21.22%))
Current Ratio = 0.30 (Total Current Assets 440.33b / Total Current Liabilities 1459.78b)
Debt / Equity = 5.83 (Debt 789.67b / totalStockholderEquity, last quarter 135.56b)
Debt / EBITDA = 25.09 (Net Debt 681.91b / EBITDA 27.18b)
Debt / FCF = 8.04 (Net Debt 681.91b / FCF TTM 84.81b)
Total Stockholder Equity = 132.07b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.86% (Net Income 19.15b / Total Assets 2227.89b)
RoE = 14.50% (Net Income TTM 19.15b / Total Stockholder Equity 132.07b)
RoCE = 5.00% (EBIT 24.04b / Capital Employed (Equity 132.07b + L.T.Debt 348.89b))
RoIC = 3.06% (NOPAT 18.94b / Invested Capital 618.10b)
WACC = 3.91% (E(287.23b)/V(1076.90b) * Re(9.80%) + D(789.67b)/V(1076.90b) * Rd(2.25%) * (1-Tc(0.21)))
Discount Rate = 9.80% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.33%
[DCF Debug] Terminal Value 62.95% ; FCFE base≈84.81b ; Y1≈55.68b ; Y5≈25.46b
Fair Price DCF = 272.2 (DCF Value 383.87b / Shares Outstanding 1.41b; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 73.96 | EPS CAGR: 12.46% | SUE: 3.85 | # QB: 1
Revenue Correlation: 85.14 | Revenue CAGR: 19.73% | SUE: 0.73 | # QB: 0

Additional Sources for RY Stock

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Fund Manager Positions: Dataroma | Stockcircle