It is a diversified financial services company, offering personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada and has dominant market shares. RBC also has wealth and capital market businesses in the US, UK, and other countries. RBC is a top 15 investment bank globally.
We grade stocks based on past performance, their future growth potential, intrinsic value, dividend history, and overall financial health.
The chart below shows how we grade Royal Bank of Canada (RY) across the board compared to its closest peers.
Benzinga Edge stock rankings give you four critical scores to help you identify the strongest and weakest stocks to buy and sell.
63.79
Growth measures a stock's combined historical expansion in earnings and revenue across multiple time periods, with emphasis on both long-term trends and recent performance.
87.47
Momentum measures a stock's relative strength based on its price movement patterns and volatility over multiple timeframes, ranked as a percentile against other stocks.
73.15
Quality is a composite ranking that evaluates a company's operational efficiency and financial health by analyzing historical profitability metrics and fundamental strength indicators on a percentile basis relative to peers.
Earnings History (3 years)
It is important to look at a companies earnings history to see not only if they are profitable, but if their earnings are growing.Ideally, we would like to see a company have a long history of consistently high dividend payouts that have grown at a consistent rate. From here we want to be confident that this sort of dividend growth and consistency will persist into the future.
The chart below shows the historical trend in Royal Bank of Canada (RY) dividend yield on an annual basis.
The two main factors that we consider when analyzing past performance is overall return and volatility
Using these two metrics, we can determine if this stock gave its investors enough return for the risk that they took on by owning it. This is measured by the sharpe ratio, which has been used as a primary measure of risk/reward trade-off for almost 60 years.
This ratio can be interpreted as the amount of return an investor has received for the amount of risk that they took on by owning the stock over that timeframe.
Royal Bank of Canada (RY) sharpe ratio over the past 5 years is 1.6214 which is considered to be above average compared to the peer average of 1.3694
Based on our data, RY's options trades have recently carried more positive sentiment than negative.
The main purpose of an income statement is to convey details of profitability and business activities. Below, is RY's income statement for the previous four years along with its trailing-twelve- month profit & loss.
It breaks down what company owns (assets) and what a company owes (liabilities), in order to give investors an overview of its capital structure.