RY

Royal Bank of Canada

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

CA

Next Earnings Date

05/28/2026

Business Summary

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital, mobile, and social platforms; independent brokers; and travel partners. Its Investor & Treasury Services segment provides asset servicing, custody, payments, and treasury services to financial and other investors; and fund and investment administration, shareholder, private capital, performance measurement and compliance monitoring, distribution, transaction banking, cash and liquidity management, foreign exchange, and global securities finance services. The company's Capital Markets segment offers corporate and investment banking, as well as equity and debt origination, distribution, advisory services, sale, and trading services for corporations, institutional investors, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.

 


VALUATION

P/E

12.06

Market Cap ($M USD)

$253.02B

Forward P/E

9.57

PEG

0.37

PRICE TO SALES

3.44

PRICE TO BOOK

2.48

EV / EBITDA

86.47

5-Year Average P/E

Free Cash Flow Yield

8.20%

DCF Value

$221.42

Graham Number

$183.84

Price to FCF

12.19

EV to FCF

23.34

Earnings Yield

6.07%

FCF Yield

8.20%

DIVIDEND

Yield

2.57%

Annual Payout

$6.36

Payout Ratio

42.80%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$15.03

Next Year EPS Growth Estimate

$18.92

Next Year Revenue Growth Estimate

$7.55T

Return on Equity (ROE)

15.37%

FREE CASH FLOW

Operating Margin

28.99%

Debt-to-Equity

6.00

Piotroski F-Score

7

Altman Z-Score

0.13

Return on Invested Capital (ROIC)

1.41%

Current Ratio

0.17

Quick Ratio

0.17

Net Debt to EBITDA

41.31

Interest Coverage

0.42

Gross Profit margin

62.97%

FCF PER SHARE

$20.28

REVENUE PER SHARE

$71.96

Gainseekers Quantitative Analysis

Summary

The market seems to be undervaluing Royal Bank of Canada. Recent pricing indicated it traded below its DCF Value and Graham Number, suggesting a potential upside. With a Forward P/E of 9.58 and a PEG ratio of 0.37, the stock appears attractively priced for growth. However, the Altman Z-score of 0.13 raises red flags about financial distress, despite a solid Earnings Yield of 6.04%. Overall, the valuation metrics suggest a mispricing relative to its intrinsic value.

AI Exposure / Tech Reliance

In the realm of AI and tech adaptation, Royal Bank of Canada, as a diversified bank, is well-positioned to leverage financial technology innovations. The banking sector is increasingly integrating AI for risk management and customer service enhancements. This positions RY to potentially capitalize on tech-driven efficiencies and customer engagement.

The Bull Case

For the value-driven investor, Royal Bank of Canada offers compelling reasons to buy. The ROIC of 1.41% and a robust Piotroski F-Score of 7 indicate efficient capital allocation and financial health. A Free Cash Flow Yield of 8.16% underscores its ability to generate cash, while an Operating Margin of 28.99% highlights strong pricing power. These metrics suggest a well-managed institution capable of delivering shareholder value.

The Bear Case

Despite its strengths, RY faces significant structural risks. The Price/Book ratio of 2.49 and Price/Sales of 3.45 suggest it may be overvalued relative to its assets and revenue. Its proximity to the 52-week high, with only a 0.58% distance, indicates potential overextension. Additionally, a concerning Current Ratio of 0.17 and a staggering Net Debt to EBITDA of 41.31 highlight liquidity and leverage challenges.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$124.85

Institutional Ownership %

1-Year Beta

0.94

Insider Buying % (6 Mo)

Distance to 52-Week High

0.86%

Distance to 52-Week Low

33.59%

EARNINGS SURPRISE %

4.63%

50-DAY SMA

$169.40

200-DAY SMA

$157.30

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.