Royal Bank of Canada (RY) Stock Analysis
Verdict: HOLD
Dominant margins and consistent earnings beats justify a premium, though current 19.3x P/E limits near-term upside to the $225 target.
Investment score: 64/100
Analysis as of
Is Royal Bank of Canada stock worth reviewing? The TradeMates thesis
The model views RY as a high-quality core holding trading near its short-term ceiling. Strong fundamentals are priced in at 19.3x P/E.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 60/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 75/100 (weight 15%)
Royal Bank of Canada opportunities and risks
What speaks for RY
- Operational Efficiency Premium
What speaks against RY
- Macroeconomic Debt Exposure
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| RY | 19.3x | 3.4x | 31.3x | 54.6% | 18.4% | 17.2% |
| RY.TO | 19.3x | 3.4x | 31.3x | 54.6% | 18.4% | 17.2% |
| TD.TO | 20.0x | 2.5x | 41.6x | 53.0% | 13.2% | 4.6% |
| BMO.TO | 19.4x | 2.3x | 18.8x | 44.7% | 12.6% | 22.1% |
| CM.TO | 16.6x | 2.9x | 24.0x | 53.9% | 18.4% | 9.2% |
| BNS.TO | 17.0x | 2.5x | 31.3x | 55.0% | 15.6% | 9.0% |
| Peer median | 19.3x | 2.5x | 31.3x | 53.9% | 15.6% | 9.2% |
Frequently asked questions about Royal Bank of Canada (RY)
Is RY stock a good investment?
The TradeMates model rates Royal Bank of Canada as HOLD with an investment score of 64/100. The model views RY as a high-quality core holding trading near its short-term ceiling. Strong fundamentals are priced in at 19.3x P/E. This is algorithmic model output, not personal investment advice.
Is RY stock a buy?
The TradeMates model verdict for RY is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.