Royal Bank of Canada

Find Ratings Reports
RY : NYSE : Financial
$71.03 | %
Today's Range: 70.43 - 71.5
Avg. Daily Volume: 1101300.0
06/23/17 - 4:04 PM ET

Financial Analysis


ROYAL BANK OF CANADA's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

During the same period, stockholders' equity ("net worth") has increased by 7.45% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)12562.011461.0
EBITDA ($mil)4825.04123.0
EBIT ($mil)4428.03758.0
Net Income ($mil)2801.02560.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)274420.0229781.0
Total Assets ($mil)1202919.01150357.0
Total Debt ($mil)189431.0167103.0
Equity ($mil)72570.067538.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin78.0476.62
EBITDA Margin38.435.97
Operating Margin35.2532.79
Sales Turnover0.040.04
Return on Assets0.930.86
Return on Equity15.0514.46
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.720.71
Interest Expense780.0608.0
Interest Coverage5.686.18


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)1457.061486.9
Div / share0.640.64
EPS1.851.66
Book value / share49.8145.42
Institutional Own % n/a n/a
Avg Daily Volume1122591.0970932.0

Valuation


HOLD. ROYAL BANK OF CANADA's P/E ratio indicates a significant discount compared to an average of 42.39 for the Commercial Banks industry and a significant discount compared to the S&P 500 average of 25.73. To use another comparison, its price-to-book ratio of 1.42 indicates a significant discount versus the S&P 500 average of 3.08 and a premium versus the industry average of 1.27. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. 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 9.61 Peers 42.39   RY 3.24 Peers 14.12

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

RY is trading at a significant 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 13.81   RY NA Peers 1.61

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 1.42 Peers 1.27   RY 10.69 Peers 4.03

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 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 2.17 Peers 2.90   RY 9.72 Peers 4.99

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 significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

RY has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades