RY Royal Bank of Canada
$197.34
▲ 0.3%Updated Oct 16, 2:25 PM ET
Report Card
RY at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Strong · 73/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 56.2% in the year to Jul 6, 2026
Key Metrics
Market Cap
$294.60B
P/E
18.23x
Forward P/E (est.)
14.86x
ROE
16.0%
Revenue Growth
135.3%
EPS Growth
22.6%
Profit Margin
26.3%
FCF Yield
6.0%
Debt / Equity
2.59x
ROIC
—
Interest Coverage
—
Current Ratio
—
Dividend Yield
2.4%
Implied Growth (rev. DCF)
—
Rating Score
73/100
Business Overview
Royal Bank of Canada (RY) is a mega-cap NYSE-listed company in the Banking industry, within the Financials sector, with a market value around $294.60B.
In its latest reported year it generated about $48.62B in revenue and $14.86B in net profit.
Our model rates RY Strong (73/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what RY's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. RY trades near $197.34, above its 50-day average ($190.82) and 200-day average ($168.14). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 69 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. RY's is $2.88 (~1.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, RY found buyers near $193.83 (support) and sellers near $209.37 (resistance); its 52-week range then was $127.38–$209.37. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.3× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
7.6%
Revenue moved from $29.69B in 2017 to $48.62B in 2025, a 6.4% compound annual growth rate. The most recent year grew a strong 135.3% year over year. Consistent top-line growth is one sign of healthy demand.
Profitability
Gross Margin
—
Operating Margin
34.6%
Net Margin
30.6%
ROE
16.0%
Royal Bank of Canada keeps about 26.3% of each sales dollar as net profit. Return on equity is 16.0%. Margins this wide usually signal pricing power or a cost advantage.
Debt Analysis
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
2.59x
Leverage: debt-to-equity is 2.6x. That is elevated leverage, which raises risk if earnings or rates move against it.
Cash Flow Analysis
Operating CF
$40.31B
Free Cash Flow
$40.31B
FCF Margin
82.9%
In the latest year Royal Bank of Canada produced about $40.31B of operating cash flow and $40.31B of free cash flow after capital spending. That is a free-cash-flow yield of about 6.0% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
2.4%
Total paid (latest FY)
$5.08B
History on record
6 years
dividend uses 13% of free cash flow
34% of net income paid out
total dividends increased 5 years in a row
no cuts in the last 6 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
18.23x
P/S
3.41x
P/B
2.07x
EV / EBITDA
—
RY trades at 18.2x trailing earnings (about 14.9x on estimated forward earnings), 3.4x sales, and 2.1x book value. That is a fairly typical valuation for a profitable company.
Metrics vs. Sector Range
Where RY sits versus the Financials companies we cover.
Bands show the middle half (25th–75th percentile) of the 141 Financials companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How RY stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.
Among the 141 rated Financials companies we cover, RY ranks #27 by our overall rating. It trades at a premium versus the sector on earnings (18.2x P/E vs. 14.9x median) with a higher return on equity (16.0% vs. 13.6%) and faster revenue growth (135.3% vs. 15.9%).
P/E vs sector
18.2x
median 14.9x
ROE vs sector
16.0%
median 13.6%
Growth vs sector
135.3%
median 15.9%
Sector rank
#27
of 141 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Financials companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 141 rated companies among the 289 Financials stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$711.88 – $1,164.89
vs. $197.34 today · implied CAGR 29% – 43%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $70.50B | $102.23B | $148.23B | $214.93B | $311.65B |
| Net income | $21.86B | $31.69B | $45.95B | $66.63B | $96.61B |
| EPS | $14.64 | $21.23 | $30.78 | $44.63 | $64.72 |
| Share price (low) | $161.04 | $233.51 | $338.59 | $490.95 | $711.88 |
| Share price (high) | $263.52 | $382.10 | $554.05 | $803.37 | $1,164.89 |
| CAGR (low–high) | -18% / 34% | 9% / 39% | 20% / 41% | 26% / 42% | 29% / 43% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for RY:
- Revenue is growing 135.3% a year, a sign of real demand.
- High net margins (26.3%) point to pricing power or efficiency.
- Strong return on equity (16.0%) shows capital is put to work well.
- Healthy free-cash-flow yield (~6.0%) funds buybacks and dividends.
- Pays a 2.4% dividend on top of any price gains.
- Our model's overall read is Strong (73/100).
Bear Case
The case against RY:
- Elevated leverage (debt/equity 2.6x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Balance-sheet risk — debt/equity of 2.6x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: Royal Bank of Canada is a mega-cap financials business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 18.2x earnings, which our model scores Strong (73/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 24 Wall Street analysts covering RY recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-4 pts of buy ratings).
Latest SEC Filings
RY's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
RY — frequently asked questions
Is RY a good stock to buy?
We don't give buy or sell advice. Our model rates Royal Bank of Canada Strong (73/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is RY's rating on The Stocks School?
Royal Bank of Canada currently scores 73/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does RY's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Royal Bank of Canada's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for RY calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this RY analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell RY. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.