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Royal Bank of Canada RY

Morningstar Rating
$91.09 +0.69 (0.76%)
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Company Report

Royal Bank of Canada Earnings: Results Largely as Expected, Although Expenses Remain a Headwind

Wide-moat-rated Royal Bank of Canada, or RBC, reported decent fourth-quarter results. Adjusted earnings per share came in at CAD 2.78, flat year over year. Provisioning increased 16% quarter over quarter, which is in line with our expectations of increasing credit costs for all Canadian banks in the coming quarters. The current results do not fundamentally change our view on RBC or our CAD 130/USD 95 fair value estimates.

Price vs Fair Value

RY is trading at a 4% discount.
Price
$91.09
Fair Value
$12.00
Uncertainty
Low
1-Star Price
$857.64
5-Star Price
$86.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Royal Bank of Canada's worldwide scope in capital markets and wealth management provides a powerful and diversified stream of revenue. This should lead to outsize fee income versus peers.

Bears

The bank has one of the larger exposures to the Canadian housing market, and as the Canadian consumer's ability to borrow becomes constrained, RBC may struggle to achieve loan and revenue growth, and incur additional credit risk.

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News

Trading Information

Previous Close Price
$90.40
Day Range
$89.8591.21
52-Week Range
$77.90104.72
Bid/Ask
$70.00 / $94.00
Market Cap
$127.09 Bil
Volume/Avg
1.7 Mil / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
10.54
Price/Sales
3.04
Dividend Yield
4.32%
Dividend Yield (Forward)
4.46%
Total Yield
4.32%

Company Profile

Royal Bank of Canada is one of the two largest banks in Canada. It is a diversified financial services company, offering personal and commercial banking, wealth-management services, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada, with additional operations in the U.S. and other countries.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Core
Total Number of Employees
94,000

Competitors

Valuation

Metric
RY
CM
TD
Price/Earnings (Normalized)
10.548.4010.25
Price/Book Value
1.601.121.48
Price/Sales
3.042.222.82
Price/Cash Flow
8.945.2611.03
Price/Earnings
RY
CM
TD

Financial Strength

Metric
RY
CM
TD
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
RY
CM
TD
Return on Assets (Normalized)
0.81%0.68%0.76%
Return on Equity (Normalized)
15.22%13.92%14.34%
Return on Invested Capital (Normalized)
Return on Assets
RY
CM
TD

Banks - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
JPM
JPMorgan Chase & CoPlk$453.4 Bil
BAC
Bank of America CorpCfps$245.0 Bil
WFC
Wells Fargo & CoMhvdq$163.5 Bil
HSBC
HSBC Holdings PLC ADRFphp$148.3 Bil
TD
The Toronto-Dominion BankTym$107.9 Bil
MUFG
Mitsubishi UFJ Financial Group Inc ADRDmjly$106.8 Bil
UBS
UBS Group AGFzflyb$91.9 Bil
C
Citigroup IncXhj$90.4 Bil
SAN
Banco Santander SA ADRSsnmfq$67.3 Bil