Royal Bank Of Canada (RY) AI Stock Analysis

• Market Cap: $287.39B
• Dividend Yield: 2.96%
• Average Volume (3M): 3.57M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.82
• Revenue Growth: 3.48%
• EPS Growth: 17.81%
• Country: CA
• Employees: 94,624
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 3.84
• Shares Outstanding: 1,404,990,100
• 10 Day Avg. Volume: 5,214,596
• 30 Day Avg. Volume: 3,571,743
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 4.66
• Enterprise Value/Gross Profit: 8.97
• Enterprise Value/Ebitda: 19.61
• 1Y Price Target: $211.98
• Price Target Upside: 3.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 75 Outperform
• Price Target: C$224.00 ▲(9.74% Upside)

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 (RY) is one of the largest financial institutions in Canada and a leading global bank. It operates through various segments including Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury Services, and Capital Markets. RBC provides a wide range of financial services, including personal banking, business banking, investment services, asset management, and insurance products, serving millions of clients across Canada and internationally.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.58B	134.49B	53.66B	48.77B	49.54B	47.10B
Gross Profit	61.04B	54.26B	56.26B	48.77B	49.54B	47.10B
EBITDA	27.92B	27.28B	21.45B	22.63B	23.06B	16.92B
Net Income	19.15B	16.23B	14.86B	15.79B	16.04B	11.43B
Balance Sheet
Total Assets	2.23T	2.17T	2.00T	1.92T	1.71T	1.62T
Cash, Cash Equivalents and Short-Term Investments	440.33B	167.13B	212.00B	240.60B	231.03B	297.64B
Total Debt	789.67B	474.20B	439.35B	425.18B	305.05B	9.87B
Total Liabilities	2.09T	2.04T	1.89T	1.81T	1.61T	1.54T
Stockholders Equity	135.56B	127.09B	117.66B	108.06B	98.67B	86.66B
Cash Flow
Free Cash Flow	84.81B	20.86B	23.35B	19.44B	58.86B	136.19B
Operating Cash Flow	87.17B	23.14B	26.08B	21.94B	61.04B	138.82B
Investing Cash Flow	-99.01B	-20.89B	-28.27B	-57.05B	-57.35B	-39.56B
Financing Cash Flow	-8.98B	-8.15B	-9.83B	-2.19B	-5.93B	-7.75B

Royal Bank Of Canada Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 204.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 204.12 is above the 20-day moving average (MA) of 203.72, above the 50-day MA of 200.53, and above the 200-day MA of 176.58, indicating a bullish trend. The MACD of 1.58 indicates Positive momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 46.78 is Neutral, 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
CM	―	$107.20B	14.05	13.40%	3.37%	-0.39%	20.28%
NA	―	$59.22B	14.67	13.25%	2.98%	9.25%	0.34%
RY	―	$287.39B	15.68	14.60%	2.96%	3.48%	17.81%
TD	―	$194.67B	9.86	17.36%	3.66%	7.92%	175.59%
BMO	―	$125.86B	15.53	10.20%	3.67%	1.78%	32.32%
BNS	―	$113.19B	17.11	8.64%	5.56%	-2.54%	-6.66%
Sector *	―	$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.