RY Stock Analysis: Royal Bank of Canada | NYSE
Banks - Diversified | NYSE, USA | Market Cap: 284.589m USD | 12M Return: 62.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 352M
EPS Trend: 93.1%
Qual. Beats: 0
Rev. Trend: 86.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Royal Bank of Canada (RY) is a diversified financial services company headquartered in Toronto and founded in 1864, operating across five core segments: Personal Banking, Commercial Banking, Wealth Management, Insurance, and Capital Markets. Its offerings span retail and commercial lending, deposits, wealth and asset management, insurance products, and capital markets services such as advisory, sales, trading, and financing for corporate, institutional, and government clients. The company serves retail customers, businesses, high-net-worth individuals, and institutional investors across global markets.
As one of Canadas largest banks and classified within the GICS Diversified Banks sub-industry, RBC benefits from a universal banking model that generates revenue across both consumer-facing services and institutional capital markets activities. This diversified structure typically provides cross-selling opportunities across business lines and geographic regions, including meaningful operations in the United States and other international markets.
- Bank of Canada rate cuts compress net interest margin
- Capital Markets revenue swings on trading and M&A advisory
- HSBC Canada integration expands domestic retail deposits and loans
| Net Income: 22.1b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.54 > 1.0 |
| NWC/Revenue: -157.6% < 20% (prev -753.8%; Δ 596.2% < -1%) |
| CFO/TA 0.03 > 3% & CFO 73.4b > Net Income 22.1b |
| Net Debt (335b) to EBITDA (31.2b): 10.76 < 3 |
| Current Ratio: 0.21 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.03b) vs 12m ago -27.31% < -2% |
| Gross Margin: 47.23% > 18% (prev 42.72%; Δ 4.51% > 0.5%) |
| Asset Turnover: 5.99% > 50% (prev 6.07%; Δ -0.08% > 0%) |
| Interest Coverage Ratio: 0.41 > 6 (EBIT TTM 28.2b / Interest Expense TTM 69.4b) |
| A: -0.09 (Total Current Assets 59.3b - Total Current Liabilities 278b) / Total Assets 2395b |
| B: 0.04 (Retained Earnings 101b / Total Assets 2395b) |
| C: 0.01 (EBIT TTM 28.2b / Avg Total Assets 2319b) |
| D: 0.06 (Book Value of Equity 141b / Total Liabilities 2255b) |
| Altman-Z'' = -0.31 = B |
As of July 07, 2026, the stock is trading at USD 208.05 with a total of 1,214,445 shares traded. Over the past week, the price has changed by +2.56%, over one month by +6.52%, over three months by +27.37% and over the past year by +62.57%.
Current recommended Stop Loss: 203.90 (which is 2% or 1.4 ATR below the current price).
Royal Bank of Canada has received a consensus analysts rating of 4.31. Therefore, it is recommended to buy RY.
- StrongBuy: 8
- Buy: 5
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 191.2 | -8.1% |
Market Cap CAD = 404b (285b USD * 1.4203 USD.CAD)
P/E Trailing = 18.9095
P/E Forward = 16.9492
P/S = 4.3305
P/B = 3.172
P/EG = 2.5281
Revenue TTM = 139b CAD
EBIT TTM = 28.2b CAD
EBITDA TTM = 31.2b CAD
Long Term Debt = 362b CAD (from longTermDebt, last quarter)
Short Term Debt = 13.4b CAD (from shortTermDebt, last quarter)
Debt = 395b CAD (from shortLongTermDebtTotal, last quarter) + Leases 4.59b
Net Debt = 335b CAD (calculated: Debt 395b - CCE 59.3b)
Enterprise Value = 740b CAD (404b + Debt 395b - CCE 59.3b)
Interest Coverage Ratio = 0.41 (Ebit TTM 28.2b / Interest Expense TTM 69.4b)
EV/FCF = 10.38x (Enterprise Value 740b / FCF TTM 71.3b)
FCF Yield = 9.63% (FCF TTM 71.3b / Enterprise Value 740b)
FCF Margin = 51.29% (FCF TTM 71.3b / Revenue TTM 139b)
Net Margin = 15.93% (Net Income TTM 22.1b / Revenue TTM 139b)
Gross Margin = 47.23% ((Revenue TTM 139b - Cost of Revenue TTM 73.3b) / Revenue TTM)
Gross Margin QoQ = 48.66% (prev 47.49%)
Tobins Q-Ratio = 0.31 (Enterprise Value 740b / Total Assets 2395b)
Interest Expense / Debt = 17.59% (Interest Expense 69.4b / Debt 395b)
Taxrate = 21.53% (6.07b / 28.2b)
NOPAT = 22.1b (EBIT 28.2b * (1 - 21.53%))
Current Ratio = 0.21 (Total Current Assets 59.3b / Total Current Liabilities 278b)
Debt / Equity = 2.81 (Debt 395b / totalStockholderEquity, last quarter 141b)
Debt / EBITDA = 10.76 (Net Debt 335b / EBITDA 31.2b)
Debt / FCF = 4.71 (Net Debt 335b / FCF TTM 71.3b)
Total Stockholder Equity = 139b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.95% (Net Income 22.1b / Total Assets 2395b)
RoE = 15.94% (Net Income TTM 22.1b / Total Stockholder Equity 139b)
RoCE = 5.64% (EBIT 28.2b / Capital Employed (Equity 139b + L.T.Debt 362b))
RoIC = 0.93% (NOPAT 22.1b / Invested Capital 2388b)
WACC = 10.75% (E(404b)/V(799b) * Re(7.77%) + D(395b)/V(799b) * Rd(17.59%) * (1-Tc(0.22)))
Discount Rate = 7.77% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -48.89 | Cagr: -13.06%
[DCF] Terminal Value 65.80% ; FCFF base≈74.3b ; Y1≈68.6b ; Y5≈61.4b
[DCF] Fair Price = 259.1 (EV 695b - Net Debt 335b = Equity 360b / Shares 1.39b; r=10.75% [WACC]; 5y FCF grow -9.62% → 2.50% )
EPS Correlation: 93.10 | EPS CAGR: 9.91% | SUE: 0.15 | # QB: 0
Revenue Correlation: 86.49 | Revenue CAGR: 9.25% | SUE: 0.66 | # QB: 0
EPS current Quarter (2026-07-31): EPS=4.03 | Chg30d=+0.97% | Revisions=+8% | Analysts=11
EPS current Year (2026-10-31): EPS=16.08 | Chg30d=+1.00% | Revisions=+47% | GrowthEPS=+11.5% | GrowthRev=+7.4%
EPS next Year (2027-10-31): EPS=17.59 | Chg30d=+0.92% | Revisions=+40% | GrowthEPS=+9.3% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: +39% (up=25, down=10)