Royal Bank of Canada

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RY : NYSE : Financial
$60.96 | %
Today's Range: 60.47 - 61.29
Avg. Daily Volume: 1,108,100
07/29/16 - 4:03 PM ET

Financial Analysis


ROYAL BANK OF CANADA's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has increased by 19.68% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)11461.010683.0
EBITDA ($mil)4123.04076.0
EBIT ($mil)3758.03764.0
Net Income ($mil)2560.02473.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)229781.0186943.0
Total Assets ($mil)1150357.01032172.0
Total Debt ($mil)167103.0155953.0
Equity ($mil)67538.056431.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin76.6280.33
EBITDA Margin35.9738.15
Operating Margin32.7935.23
Sales Turnover0.040.04
Return on Assets0.860.92
Return on Equity14.4616.63
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.710.73
Interest Expense608.0540.0
Interest Coverage6.186.97


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1486.91441.74
Div / share0.640.63
EPS1.661.68
Book value / share45.4239.14
Institutional Own % n/a n/a
Avg Daily Volume1125182.01440239.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 11.99 for the Commercial Banks industry and a significant discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 1.35 indicates a discount versus the S&P 500 average of 2.81 and a premium versus the industry average of 1.07. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. The valuation analysis reveals that, ROYAL BANK OF CANADA seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RY 9.25 Peers 11.99   RY 2.44 Peers 4.80

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RY is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RY is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RY NA Peers 12.08   RY NA Peers 2.92

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RY 1.35 Peers 1.07   RY 2.31 Peers 0.00

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RY is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

RY is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RY 2.11 Peers 2.36   RY -0.68 Peers -0.10

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RY is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RY significantly trails its peers on the basis of sales growth

 

 

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