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
Interest Expense608.0540.0
Interest Coverage6.186.97

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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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