RY

Royal Bank of Canada

Fundamental data last updated:August 20, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

CA

Next Earnings Date

08/27/2026

Business Summary

Royal Bank of Canada (RBC), established in 1864 and headquartered in Toronto, Canada, operates as a comprehensive global financial institution. Its Personal & Commercial Banking division caters to individual clients by providing essential services like checking and savings accounts, various lending options (including mortgages, personal loans, and auto financing), private banking, investment vehicles such as mutual funds and guaranteed investment certificates (GICs), along with credit cards and payment solutions. For small and medium-sized commercial enterprises, this segment delivers a suite of services including financing, leasing, deposit management, foreign exchange, cash management, auto dealer financing, and trade solutions. These offerings are readily accessible through its extensive network of branches, ATMs, and mobile platforms. The Wealth Management segment specializes in delivering bespoke, advice-driven strategies and solutions to affluent and ultra-affluent individuals, as well as institutional investors. Through its Insurance arm, RBC offers a broad spectrum of protection and advisory services. These encompass life, health, home, auto, travel, wealth, annuities, and reinsurance, alongside comprehensive business insurance options. Clients, whether individuals, businesses, or groups, can access these services via advice centers, dedicated RBC insurance stores, mobile advisors, diverse digital and social platforms, independent brokers, and travel alliances. The Investor & Treasury Services division supports financial institutions and other investors with critical asset servicing, custody, payment processing, and treasury functions. It further extends its expertise to include fund and investment administration, shareholder services, private capital solutions, performance measurement, compliance oversight, distribution support, transaction banking, robust cash and liquidity management, foreign exchange capabilities, and global securities financing. Finally, the Capital Markets segment provides extensive corporate and investment banking solutions. This includes the origination and distribution of equity and debt instruments, strategic advisory services, and comprehensive sales and trading capabilities. Its clientele spans corporations, institutional investors, asset managers, private equity firms, and governmental entities.

 


VALUATION

P/E

13.09

Market Cap ($M USD)

$289.14B

Forward P/E

11.43

PEG

0.78

PRICE TO SALES

3.41

PRICE TO BOOK

2.92

EV / EBITDA

31.13

5-Year Average P/E

Free Cash Flow Yield

17.36%

DCF Value

$198.96

Graham Number

$190.01

Price to FCF

5.76

EV to FCF

10.40

Earnings Yield

5.38%

FCF Yield

17.36%

DIVIDEND

Yield

2.15%

Annual Payout

$6.36

Payout Ratio

41.64%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$15.89

Next Year EPS Growth Estimate

$18.20

Next Year Revenue Growth Estimate

$75.74B

Return on Equity (ROE)

15.95%

FREE CASH FLOW

Operating Margin

24.56%

Debt-to-Equity

6.00

Piotroski F-Score

7

Altman Z-Score

0.29

Return on Invested Capital (ROIC)

1.24%

Current Ratio

4.42

Quick Ratio

4.42

Net Debt to EBITDA

13.90

Interest Coverage

0.43

Gross Profit margin

54.55%

FCF PER SHARE

$51.14

REVENUE PER SHARE

$86.36

Gainseekers Quantitative Analysis

Summary

The market appears to be pricing Royal Bank of Canada with a cautious optimism. Recent pricing indicated it traded above its DCF value, suggesting a potential overvaluation. However, the Forward P/E of 11.36 and a PEG ratio under 1.0 signal undervaluation relative to growth expectations. The Altman Z-score of 0.29 raises red flags about financial distress, but the Earnings Yield of 5.41% offers some compensation. Overall, the stock presents a mixed bag of value and risk.

AI Exposure / Tech Reliance

In the rapidly evolving financial sector, Royal Bank of Canada is well-positioned to leverage AI and tech advancements. As a diversified bank, it can integrate AI to enhance customer service and streamline operations. This adaptability is crucial for maintaining competitiveness in a tech-driven landscape.

The Bull Case

For the value-driven investor, Royal Bank of Canada offers compelling reasons to buy. With a robust ROIC of 1.24% and a Piotroski F-Score of 7, the bank demonstrates efficient capital use and strong financial health. Its Free Cash Flow Yield, though modest, is complemented by a solid operating margin of 24.56%, indicating effective cost management. These metrics suggest a company with pricing power and operational resilience.

The Bear Case

Despite its strengths, Royal Bank of Canada faces significant structural risks. The Price/Book ratio of 2.91 and Price/Sales of 3.39 suggest a premium valuation, potentially limiting upside. Its proximity to the 52-week high indicates technical overextension, while the Net Debt to EBITDA ratio of 13.90 highlights leverage concerns. The low Altman Z-score further underscores potential financial instability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$225.00

Institutional Ownership %

1-Year Beta

0.93

Insider Buying % (6 Mo)

Distance to 52-Week High

0.63%

Distance to 52-Week Low

38.77%

EARNINGS SURPRISE %

1.07%

50-DAY SMA

$190.84

200-DAY SMA

$168.14

⚠️ 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.