Royal Bank of Canada

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RY : NYSE : Financial
$75.63 | %
Today's Range: 75.11 - 75.63
Avg. Daily Volume: 943700.0
02/17/17 - 4:01 PM ET

Financial Analysis


ROYAL BANK OF CANADA's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has increased by 14.27% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)11245.09894.0
EBITDA ($mil)4281.03670.0
EBIT ($mil)3871.03351.0
Net Income ($mil)2533.02569.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)258183.0238160.0
Total Assets ($mil)1180258.01074208.0
Total Debt ($mil)176415.0151761.0
Equity ($mil)71017.062146.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin82.0181.78
EBITDA Margin38.0737.09
Operating Margin34.4233.87
Sales Turnover0.040.04
Return on Assets0.880.92
Return on Equity14.2315.66
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.710.71
Interest Expense603.0540.0
Interest Coverage6.426.21


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1484.241443.96
Div / share0.620.6
EPS1.651.74
Book value / share47.8543.04
Institutional Own % n/a n/a
Avg Daily Volume938569.0867691.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 18.26 for the Commercial Banks industry and a significant discount compared to the S&P 500 average of 26.35. Conducting a second comparison, its price-to-book ratio of 1.58 indicates a discount versus the S&P 500 average of 2.94 and a premium versus the industry average of 1.29. The price-to-sales ratio is above the S&P 500 average, but well 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 11.15 Peers 18.26   RY 4.17 Peers 8.53

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 14.64   RY NA Peers 2.83

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 1.58 Peers 1.29   RY 0.59 Peers -38.86

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 2.43 Peers 2.99   RY 7.27 Peers 2.95

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.

 

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.

 

 

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