Royal Bank of Canada (RY) AI Stock Analysis

Established in 1864 and headquartered in Toronto, Royal Bank of Canada provides diversified financial services across Canada, the United States, the Caribbean, and internationally. The bank operates through five main segments: Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury Services, and Capital Markets. Personal & Commercial Banking handles retail banking, corporate banking, and retail investment services. Wealth Management delivers investment solutions and asset management. The Insurance division covers life, health, home, auto, travel, wealth, and commercial insurance. Investor & Treasury Services offers custodial, advisory, and financing services to institutional clients, while Capital Markets provides corporate banking, investment banking, and global market operations.

Royal Bank of Canada grew revenue from $57.68B in FY2021 to $137.36B in FY2025, recording a 5-year revenue CAGR of 17.6%. Annual net income increased from $16.04B in FY2021 to $20.36B in FY2025, with EPS climbing from $11.19 to $14.43 over the same timeframe. Annual operating margin was 18.7% in FY2025 with a net margin of 14.8%. Over the trailing twelve months, revenue reached $67.15B with an operating margin of 46.4% and net profit margin of 33.9%. In the latest quarter ended July 31, 2026, quarterly revenue increased 8.9% year-over-year while quarterly earnings expanded 12.8%.

As of July 31, 2026, Royal Bank of Canada held $64.17B in cash and short-term investments against $418.01B in total debt, resulting in net debt of $353.84B. Shareholders' equity was $145.11B on total assets of $2.50T, reflecting a debt-to-equity ratio of 2.88 and a current ratio of 4.85. In FY2025, the bank generated $55.22B in operating cash flow and $52.98B in free cash flow. Capital allocation in FY2025 included $2.24B in capital expenditures, $8.80B in dividends paid, and $13.49B in share buybacks, helping reduce the 5-year share count by 30.5%.

Royal Bank of Canada trades at a trailing P/E of 17.3x and a forward P/E of 16.0x, both above the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales multiple is 4.1x versus the peer median of 3.2x, alongside a price-to-book ratio of 2.9x and a PEG ratio of 2.26. The stock closed at $197.80 on October 16, 2026, trading 6.2% above its 200-day average. Over the past year, the stock returned 39.9% compared to 16.8% for the S&P 500, and over five years returned 124.5% compared to 83.0% for the index.

Royal Bank of Canada pays an annualized forward dividend of $4.96 per share, corresponding to a dividend yield of 2.51%. The payout ratio stands at 38.4%, supported by a 32-year record of consecutive dividend payments. The dividend has expanded at an annualized 5-year growth rate of 6.4%, with the last ex-dividend date on October 26, 2026.

Wall Street coverage includes 5 Strong Buy, 4 Buy, 5 Hold, 1 Sell, and 0 Strong Sell recommendations. The mean price target is $211.36, representing a 6.9% upside compared to the last close of $197.80. For the fiscal year ending October 31, 2026, analysts estimate EPS of $16.43 and revenue of $72.42B. Royal Bank of Canada beat EPS estimates in each of the last 4 quarters, and its next earnings date is scheduled for December 2, 2026.

This page is an AI-written research summary of Royal Bank of Canada (RY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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