Is Royal Bank Stock a Good Investment?

Royal Bank Investment Advice

  RY
To provide specific investment advice or recommendations on Royal Bank of stock, we recommend investors consider the following general factors when evaluating Royal Bank of. This will help you to make an informed decision on whether to include Royal Bank in one of your diversified portfolios:
  • Examine Royal Bank's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Royal Bank's leadership team and their track record. Good management can help Royal Bank navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Banks space and any emerging trends that could impact Royal Bank's business and its evolving consumer preferences.
  • Compare Royal Bank's performance and market position to its competitors. Analyze how Royal Bank is positioned in terms of product offerings, innovation, and market share.
  • Check if Royal Bank pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Royal Bank's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Royal Bank of stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Royal Bank of is a good investment.
 
Sell
 
Buy
Strong Hold
Macroaxis provides advice on Royal Bank of to complement and cross-verify current analyst consensus on Royal Bank. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Royal Bank is not overpriced, please check all Royal Bank fundamentals, including its net income, cash flow from operations, beta, as well as the relationship between the total debt and price to earnings to growth . Given that Royal Bank has a price to earning of 12.27 X, we recommend you to check out Royal Bank market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Royal Bank Stock

Researching Royal Bank's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 52.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.76. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Royal Bank recorded earning per share (EPS) of 7.97. The entity last dividend was issued on the 25th of July 2024. The firm had 2:1 split on the 7th of April 2006.
To determine if Royal Bank is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Royal Bank's research are outlined below:
Royal Bank uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Royal Bank of. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Royal Bank's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
6th of March 2024
Upcoming Quarterly Report
View
23rd of May 2024
Next Financial Report
View
31st of January 2024
Next Fiscal Quarter End
View
5th of December 2024
Next Fiscal Year End
View
31st of October 2023
Last Quarter Report
View
31st of October 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Royal Bank's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Royal Bank's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
1997-03-05
1997-01-310.290.320.0310 
2000-05-18
2000-04-300.390.430.0410 
2000-02-23
2000-01-310.360.40.0411 
2001-08-21
2001-07-310.460.41-0.0510 
2002-02-22
2002-01-310.450.520.0715 
2010-08-26
2010-07-310.930.81-0.1212 
2009-05-29
2009-04-300.90.78-0.1213 
2007-05-25
2007-04-300.970.85-0.1212 

Know Royal Bank's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Royal Bank is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Royal Bank of backward and forwards among themselves. Royal Bank's institutional investor refers to the entity that pools money to purchase Royal Bank's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
The Toronto-dominion Bank2024-03-31
16.9 M
Cibc Global Asset Management Inc2024-03-31
14 M
Wellington Management Company Llp2024-03-31
12.5 M
Manufacturers Life Insurance Co2024-03-31
11.9 M
Beutel, Goodman & Company Ltd.2024-03-31
10.9 M
Legal & General Group Plc2024-03-31
10.3 M
Fmr Inc2024-03-31
9.9 M
Connor Clark & Lunn Inv Mgmt Ltd2024-03-31
8.9 M
Scotia Capital Inc2024-03-31
8.8 M
Royal Bank Of Canada2024-03-31
76.9 M
Bank Of Montreal2024-03-31
74.4 M
Note, although Royal Bank's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Royal Bank's market capitalization trends

The company currently falls under 'Mega-Cap' category with a market capitalization of 156.55 B.

Market Cap

145.67 Billion

Royal Bank's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.01  0.01 
Return On Capital Employed 0.01  0.01 
Return On Assets 0.01  0.01 
Return On Equity 0.11  0.12 
The company has Net Profit Margin (PM) of 0.28 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.4 %, which signifies that for every $100 of sales, it has a net operating income of $0.4.
Determining Royal Bank's profitability involves analyzing its financial statements and using various financial metrics to determine if Royal Bank is a good buy. For example, gross profit margin measures Royal Bank's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Royal Bank's profitability and make more informed investment decisions.
The data published in Royal Bank's official financial statements typically reflect Royal Bank's business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving Royal Bank's quantitative information. For example, before you start analyzing numbers published by Royal accountants, it's essential to understand Royal Bank's liquidity, profitability, and earnings quality within the context of the Banks space in which it operates.
Please note, the imprecision that can be found in Royal Bank's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Royal Bank of. Check Royal Bank's Beneish M Score to see the likelihood of Royal Bank's management manipulating its earnings.

Evaluate Royal Bank's management efficiency

Return On Equity is likely to rise to 0.12 in 2024, whereas Return On Tangible Assets are likely to drop 0.01 in 2024. At this time, Royal Bank's Non Current Assets Total are fairly stable compared to the past year. Intangibles To Total Assets is likely to rise to 0.01 in 2024, whereas Total Assets are likely to drop slightly above 10.1 B in 2024. Royal Bank's management efficiency ratios could be used to measure how well Royal Bank manages its routine affairs as well as how well it operates its assets and liabilities.
Last ReportedProjected for Next Year
Book Value Per Share 76.13  79.93 
Tangible Book Value Per Share 82.06  74.43 
Enterprise Value Over EBITDA 19.43  20.40 
Price Book Value Ratio 1.18  1.51 
Enterprise Value Multiple 19.43  20.40 
Price Fair Value 1.18  1.51 
Enterprise Value414.3 B435 B
The analysis of Royal Bank's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Royal Bank's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Royal Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0375
Forward Dividend Yield
0.0375
Forward Dividend Rate
4.14
Beta
0.842

Basic technical analysis of Royal Stock

As of the 24th of July, Royal Bank holds the Risk Adjusted Performance of 0.1324, semi deviation of 0.5869, and Coefficient Of Variation of 500.68. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Royal Bank, as well as the relationship between them.

Royal Bank's Outstanding Corporate Bonds

Royal Bank issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Royal Bank uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Royal bonds can be classified according to their maturity, which is the date when Royal Bank of has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Royal Bank's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Royal Bank's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Royal Bank's intraday indicators

Royal Bank intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Royal Bank stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Royal Bank Corporate Filings

24th of July 2024
Prospectus used primarily for registering securities for public sale.
ViewVerify
FWP
15th of July 2024
A written communication used by offering participants to offer securities to the public or to solicit securities transactions.
ViewVerify
1st of July 2024
Other Reports
ViewVerify
Royal Bank time-series forecasting models is one of many Royal Bank's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Royal Bank's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Royal Stock media impact

Far too much social signal, news, headlines, and media speculation about Royal Bank that are available to investors today. That information is available publicly through Royal media outlets and privately through word of mouth or via Royal internal channels. However, regardless of the origin, that massive amount of Royal data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Royal Bank news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Royal Bank relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Royal Bank's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Royal Bank alpha.

Royal Bank Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Royal Bank can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Royal Bank Historical Investor Sentiment

Investor biases related to Royal Bank's public news can be used to forecast risks associated with an investment in Royal. The trend in average sentiment can be used to explain how an investor holding Royal can time the market purely based on public headlines and social activities around Royal Bank of. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Royal Bank's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Royal Bank and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Royal Bank news discussions. The higher the estimate score, the more favorable the investor's outlook on Royal Bank.

Royal Bank Maximum Pain Price across 2024-08-16 Option Contracts

Royal Bank's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Royal Bank close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Royal Bank's options.

Royal Bank Corporate Directors

Jacynthe CoteIndependent DirectorProfile
Andrew ChisholmIndependent DirectorProfile
Roberta JamiesonIndependent DirectorProfile
David DenisonIndependent DirectorProfile

Additional Tools for Royal Stock Analysis

When running Royal Bank's price analysis, check to measure Royal Bank's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Royal Bank is operating at the current time. Most of Royal Bank's value examination focuses on studying past and present price action to predict the probability of Royal Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Royal Bank's price. Additionally, you may evaluate how the addition of Royal Bank to your portfolios can decrease your overall portfolio volatility.