Royal Bank Of Canada (RY) AI Stock Analysis

• Market Cap: $318.90B
• Dividend Yield: 2.65%
• Average Volume (3M): 3.28M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.71
• Revenue Growth: 2.13%
• EPS Growth: 25.16%
• Country: CA
• Employees: 94,624
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 3.85
• Shares Outstanding: 1,400,212,000
• 10 Day Avg. Volume: 2,992,624
• 30 Day Avg. Volume: 3,283,141
• PEG Ratio: 0.56
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 5.47
• Enterprise Value/Market Cap: 1.93
• Enterprise Value/Revenue: 7.60
• Enterprise Value/Gross Profit: 9.87
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $233.95
• Price Target Upside: 1.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 15.61
• Revenue Forecast (FY): $70.26B

• Rating: 75 Outperform
• Price Target: C$224.00 ▼(-2.61% Downside)

Royal Bank of Canada's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The stock's technical indicators suggest potential overbought conditions, which could lead to a short-term correction. The valuation is reasonable, providing a balanced outlook for investors.

Positive Factors

Revenue Growth

Strong revenue growth across key segments indicates robust business expansion and effective market penetration, supporting long-term financial health.

Capital Strength

A strong capital position with a high CET1 ratio enhances financial stability and provides a buffer against economic uncertainties, supporting sustainable growth.

Strategic Acquisitions

Successful integration of acquisitions like HSBC Canada enhances operational efficiency and competitive positioning, driving long-term profitability.

Negative Factors

High Leverage

High leverage increases financial risk, potentially straining cash flow and limiting flexibility, especially in rising interest rate environments.

Declining Margins

Declining profit margins may indicate rising operational costs or competitive challenges, which could pressure future earnings and profitability.

Elevated Credit Loss Provisions

Increased credit loss provisions reflect potential asset quality issues, which could impact profitability and require careful risk management.

Royal Bank Of Canada Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Royal Bank of Canada's revenue model is primarily based on interest income, fee-based income, and trading revenues. The majority of its revenue comes from Personal & Commercial Banking, which earns interest from loans and mortgages, as well as fees from various banking transactions. Wealth Management contributes significantly through asset management fees and commissions from financial products. Insurance operations generate premiums and investment income, while Capital Markets focuses on trading, investment banking, and advisory services. Additionally, RBC's Investor & Treasury Services provides custody and administration services, which further contribute to its revenue. Strategic partnerships and a strong digital banking presence also enhance its earnings potential.

Royal Bank Of Canada Financial Statement Overview

Summary

Royal Bank of Canada demonstrates strong revenue growth and profitability, with robust cash flow generation. However, the high leverage poses potential risks, and declining margins may indicate rising costs or competitive challenges. Overall, the financial health is solid, but careful management of debt and costs is essential.

Income Statement

The income statement shows strong revenue growth with a 20.54% increase in TTM, indicating robust business expansion. Gross profit margin is healthy at 51.92%, and net profit margin is solid at 16.29%. However, the margins have decreased compared to previous years, suggesting increased costs or competitive pressures.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 5.83, indicating significant leverage, which could pose risks if interest rates rise. Return on equity is strong at 14.50%, showing efficient use of equity. The equity ratio is relatively low, suggesting reliance on debt financing.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth of 7.57% in TTM, indicating good cash generation. The operating cash flow to net income ratio is low at 0.06, suggesting potential issues in converting income to cash. However, the free cash flow to net income ratio is high at 97.29%, showing strong cash flow relative to earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	137.36B	54.11B	49.00B	48.50B	50.45B
Gross Profit	62.17B	54.11B	49.00B	48.50B	50.45B
EBITDA	0.00	0.00	0.00	0.00	0.00
Net Income	20.36B	16.23B	14.61B	15.79B	16.04B
Balance Sheet
Total Assets	2.33T	2.17T	2.01T	1.92T	1.71T
Cash, Cash Equivalents and Short-Term Investments	165.28B	167.13B	212.00B	240.60B	231.03B
Total Debt	834.96B	779.52B	774.59B	699.12B	567.25B
Total Liabilities	2.19T	2.04T	1.89T	1.81T	1.61T
Stockholders Equity	139.09B	127.09B	117.66B	108.06B	98.67B
Cash Flow
Free Cash Flow	52.98B	20.86B	23.35B	19.44B	58.86B
Operating Cash Flow	55.22B	23.14B	26.08B	21.94B	61.04B
Investing Cash Flow	-68.57B	-20.89B	-28.27B	-57.05B	-57.35B
Financing Cash Flow	-6.71B	-8.15B	-9.83B	-2.19B	-5.93B

Royal Bank Of Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 230.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RY, the sentiment is Positive. The current price of 230 is above the 20-day moving average (MA) of 216.47, above the 50-day MA of 209.28, and above the 200-day MA of 183.37, indicating a bullish trend. The MACD of 5.68 indicates Negative momentum. The RSI at 83.20 is Negative, neither overbought nor oversold. The STOCH value of 94.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RY.

Royal Bank Of Canada Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NA	78 Outperform	$61.80B	15.30	13.53%	2.69%	7.50%	-5.28%
RY	75 Outperform	$318.90B	16.15	15.28%	2.65%	2.13%	25.16%
TD	75 Outperform	C$213.60B	10.93	16.78%	3.34%	3.07%	144.41%
CM	74 Outperform	$110.53B	14.30	13.69%	3.07%	-3.13%	18.22%
BNS	71 Outperform	$124.13B	17.20	9.19%	4.32%	-3.65%	-1.73%
BMO	69 Neutral	C$128.96B	15.87	10.10%	3.55%	-1.30%	20.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Royal Bank Of Canada Corporate Events

Royal Bank of Canada Issues $1.35 Billion in Capital Notes to Strengthen Financial Position

On September 23, 2025, Royal Bank of Canada announced the issuance of $1.35 billion in 6.500% Limited Recourse Capital Notes, Series 7, and Non-Cumulative 5-Year Fixed Rate Reset First Preferred Shares, Series BZ. This move is part of the bank’s strategy to strengthen its capital base and enhance its financial flexibility. The issuance is expected to have significant implications for the bank’s financial operations, potentially improving its industry positioning and providing more stability for stakeholders.

The most recent analyst rating on (TSE:RY) stock is a Hold with a C$208.00 price target. To see the full list of analyst forecasts on Royal Bank Of Canada stock, see the TSE:RY Stock Forecast page.

RBC Earnings Call: Record Growth Amid Challenges

The recent earnings call for the Royal Bank of Canada (RBC) painted a picture of robust financial health and strategic growth, despite looming external challenges. The sentiment throughout the call was predominantly positive, driven by record earnings and substantial revenue growth across various segments. However, caution was advised due to geopolitical risks, trade uncertainties, and elevated credit provisions that could potentially impact future performance. Nevertheless, the bank’s strong results and strategic initiatives provided a reassuring outlook.

Royal Bank of Canada Reports Record Q3 2025 Earnings

Royal Bank of Canada (RBC) is a global financial institution and the largest bank in Canada, known for its diversified business model and focus on innovation in the banking sector. It operates across multiple segments including personal and commercial banking, wealth management, insurance, and capital markets.

Royal Bank of Canada Reports Record Q3 2025 Earnings

On August 27, 2025, Royal Bank of Canada reported a record net income of $5.4 billion for the third quarter ended July 31, 2025, marking a 21% increase from the previous year. This growth was driven by strong performance across all business segments, particularly in Capital Markets and Personal Banking, reflecting the bank’s robust business model and strategic investments. The bank’s capital position remains strong with a CET1 ratio of 13.2%, supporting continued growth and shareholder returns. The results highlight RBC’s commitment to client focus and its ability to adapt and thrive in a dynamic economic environment.

The most recent analyst rating on (TSE:RY) stock is a Buy with a C$201.00 price target. To see the full list of analyst forecasts on Royal Bank Of Canada stock, see the TSE:RY Stock Forecast page.

Royal Bank of Canada Issues $2.75 Billion in Medium-Term Notes

On August 6, 2025, Royal Bank of Canada announced the issuance of Senior Global Medium-Term Notes, Series J, with a total aggregate principal amount of $2.75 billion. The issuance includes $1.25 billion of 4.498% Senior Fixed Rate/Floating Rate Notes due in 2029, $500 million of Senior Floating Rate Notes due in 2029, and $1 billion of 4.696% Senior Fixed Rate/Floating Rate Notes due in 2031. This strategic move is part of the bank’s ongoing efforts to strengthen its financial position and support its growth initiatives. The issuance is expected to have implications for the bank’s capital structure and may influence its market positioning by enhancing its ability to fund operations and investments.

The most recent analyst rating on (TSE:RY) stock is a Buy with a C$168.00 price target. To see the full list of analyst forecasts on Royal Bank Of Canada stock, see the TSE:RY Stock Forecast page.