Royal Bank of Canada logged a 1.9% change during today's afternoon session, and is now trading at a price of $118.62 per share.
Royal Bank of Canada returned gains of 28.1% last year, with its stock price reaching a high of $119.89 and a low of $77.9. Over the same period, the stock outperformed the S&P 500 index by 3.5%. More recently, the company's 50-day average price was $109.5. Royal Bank of Canada operates as a diversified financial service company worldwide. Based in Toronto, Canada, the Large-Cap Finance company has 94,480 full time employees. Royal Bank of Canada has returned a 4.7% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
A Declining EPS Growth Trend and Positive Cash Flows:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $46,002 | $47,181 | $49,693 | $48,985 | $56,129 | $14,154 |
| Interest Income (M) | $21,584 | $14,048 | $8,143 | $18,054 | $61,862 | $19,131 |
| Net Margins | 28% | 24% | 32% | 32% | 26% | 28% |
| Net Income (M) | $12,871 | $11,437 | $16,050 | $15,807 | $14,866 | $3,950 |
| Depreciation & Amort. (M) | $1,824 | $2,606 | $2,563 | $2,634 | $2,762 | $711 |
| Earnings Per Share | $8.75 | $7.82 | $11.06 | $11.06 | $10.5 | $2.74 |
| EPS Growth | n/a | -10.63% | 41.43% | 0.0% | -5.06% | -73.9% |
| Free Cash Flow (M) | $14,265 | $138,819 | $61,044 | $21,942 | $26,079 | -$15,603 |
Royal Bank of Canada Trades at a Premium:
Royal Bank of Canada has a trailing twelve month P/E ratio of 13.6, compared to an average of 19.48 for the Finance sector. Based on its EPS guidance of $9.3, the company has a forward P/E ratio of 11.8. The 0.9% compound average growth rate of Royal Bank of Canada's historical and projected earnings per share yields a PEG ratio of 15.49. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Royal Bank of Canada in terms of its equity because its P/B ratio is 1.5 while the sector average is 1.85.
Royal Bank of Canada Has an Analyst Consensus of Little Upside Potential:
The 6 analysts following Royal Bank of Canada have set target prices ranging from $80.57 to $123.12 per share, for an average of $108.25 with a buy rating. The company is trading 9.6% away from its average target price, indicating that there is an analyst consensus of little upside potential.
The largest shareholder is Royal Bank of Canada, whose 5% stake in the company is worth $8,956,569,731.
