Royal Bank of Canada (RY) Stock Analysis

September 7, 2026

This is a peer-relative look at Royal Bank of Canada (RY): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Banks peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Royal Bank of Canada (RY)
Profile Item	RY
Name	Royal Bank of Canada
Country/Region	Canada
GICS Sector	Financials
GICS Industry Group	Banks
GICS Industry	Banks
GICS Sub-Industry	Diversified Banks
Market Capitalization	291.55 billion USD
Currency	USD
Exchange	NYSE
Listing Date	October 16, 1995
Security Type	Common Stock

Price Performance

Cumulative Growth

GSPC

Royal Bank of Canada (RY) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Royal Bank of Canada (RY) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Royal Bank of Canada (RY) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Royal Bank of Canada (RY) metric values compared with Banks industry-group medians
Metric	Current stock: RY	Industry group median
Total Return (1Y)	46.29%	26.60%
Total Return (3Y, Annualized)	36.61%	23.58%
Total Return (5Y, Annualized)	19.16%	11.47%

Risk Profile

Drawdown History

GSPC

Royal Bank of Canada (RY) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Royal Bank of Canada (RY) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Royal Bank of Canada (RY) metric values compared with Banks industry-group medians
Metric	Current stock: RY	Industry group median
Volatility (1Y, Annualized)	15.68%	25.57%
Beta (5Y)	0.79	0.73
Max Drawdown (5Y)	-28.69%	-43.37%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. RY is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Royal Bank of Canada (RY) metric values compared with Banks industry-group medians
Metric	Current stock: RY	Industry group median
Sharpe Ratio (1Y)	2.69	0.90
Sortino Ratio (1Y)	4.26	1.32

Profitability

ROE (TTM)

Royal Bank of Canada (RY) posts ROE of 16.21%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

RY

Banks industry group

16.21%

Group distribution

Max: 19.57%
RY: 16.21%
Q3: 13.34%
Median: 11.19%
Q1: 9.06%
Min: 3.03%

Largest peers

JPM: 17.79%
RY: 16.21%
HSBC: 13.11%
WFC: 12.58%
BAC: 11.20%
MUFG: 9.46%
C: 8.53%

Where Royal Bank of Canada (RY) stands on ROE within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Royal Bank of Canada (RY) keeps 33.87% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

RY

Banks industry group

33.87%

Group distribution

Max: 47.25%
Q3: 34.96%
RY: 33.87%
Median: 30.66%
Q1: 26.45%
Min: 14.41%

Largest peers

HSBC: 37.80%
JPM: 34.92%
RY: 33.87%
BAC: 29.52%
MUFG: 27.45%
WFC: 27.23%
C: 21.83%

Where Royal Bank of Canada (RY) stands on net margin within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

operating margin is set aside for Royal Bank of Canada (RY) in Banks: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.

Profitability Metrics

Royal Bank of Canada (RY) metric values compared with Banks industry-group medians
Metric	Current stock: RY	Industry group median
ROE (TTM)	16.21%	11.19%
ROA (TTM)	0.96%	1.20%
Net Margin (TTM)	33.87%	30.66%
Operating Margin (TTM)	--	--
Gross Margin (TTM)	--	--

Growth

Revenue Growth

Royal Bank of Canada (RY) grew revenue 15.73%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Royal Bank of Canada (RY): Revenue Growth across different time periods, set against Banks industry-group medians.

EPS Growth

No usable EPS growth is available for Royal Bank of Canada (RY) this period, so the earnings-momentum read is skipped.

Royal Bank of Canada (RY) doesn't report EPS Growth this period; the bars show the Banks industry-group medians on their own.

Growth Metrics

Royal Bank of Canada (RY) metric values compared with Banks industry-group medians
Metric	Current stock: RY	Industry group median
Revenue Growth (YoY)	15.73%	11.15%
Revenue Growth (3Y CAGR)	10.90%	6.24%
EPS Growth (YoY)	--	16.09%
EPS Growth (3Y CAGR)	--	2.73%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Royal Bank of Canada (RY) in Banks: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Royal Bank of Canada (RY) in Banks: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Royal Bank of Canada (RY) metric values compared with Banks industry-group medians
Metric	Current stock: RY	Industry group median
Current Ratio (MRQ)	--	--
Debt / Equity (MRQ)	--	--
Net Debt / EBITDA	--	--

Dividends

Dividend Yield (TTM)

Royal Bank of Canada (RY) has dividend yield of 3.10%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

RY

Banks industry group

3.10%

Group distribution

Max: 5.64%
Q3: 3.16%
RY: 3.10%
Median: 2.34%
Q1: 1.24%
Min: 0.00%

Largest peers

MUFG: 356.40%
RY: 3.10%
WFC: 2.02%
BAC: 1.79%
C: 1.74%
JPM: 1.66%
HSBC: 0.70%

Where Royal Bank of Canada (RY) stands on dividend yield within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Royal Bank of Canada (RY) has payout ratio of 41.49%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

RY

Banks industry group

41.49%

Group distribution

Max: 73.52%
Q3: 41.82%
RY: 41.49%
Median: 28.89%
Q1: 19.23%
Min: 0.00%

Largest peers

HSBC: 53.57%
RY: 41.49%
MUFG: 35.38%
WFC: 26.16%
BAC: 25.87%
C: 25.86%
JPM: 25.71%

Where Royal Bank of Canada (RY) stands on payout ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Royal Bank of Canada (RY) metric values compared with Banks industry-group medians
Metric	Current stock: RY	Industry group median
Dividend Yield (TTM)	3.10%	2.34%
Dividend Payout Ratio (TTM)	41.49%	28.89%

Valuation

P/E Ratio (TTM)

Royal Bank of Canada (RY) trades at P/E ratio of 18.38, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

RY

Banks industry group

18.38

Group distribution

Max: 20.32
RY: 18.38
Q3: 15.14
Median: 12.76
Q1: 11.45
Min: 7.37

Largest peers

RY: 18.38
MUFG: 16.17
JPM: 15.36
HSBC: 15.30
C: 14.84
BAC: 14.48
WFC: 13.08

Where Royal Bank of Canada (RY) stands on P/E ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

P/S ratio is not assessed for Royal Bank of Canada (RY) in Banks: the revenue line is driven by spread economics rather than conventional product or service sales, so book value or earnings usually carry more weight.

P/B Ratio (MRQ)

Royal Bank of Canada (RY) trades at 3.02 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

RY

Banks industry group

3.02

Group distribution

RY: 3.02
Max: 2.26
Q3: 1.62
Median: 1.33
Q1: 1.14
Min: 0.45

Largest peers

HSBC: 8.50
RY: 3.02
JPM: 2.70
MUFG: 1.86
WFC: 1.69
BAC: 1.59
C: 1.20

Where Royal Bank of Canada (RY) stands on P/B ratio within its Banks peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Royal Bank of Canada (RY) metric values compared with Banks industry-group medians
Metric	Current stock: RY	Industry group median
P/E Ratio (TTM)	18.38	12.76
P/S Ratio (TTM)	--	--
P/B Ratio (MRQ)	3.02	1.33
Free Cash Flow Yield (TTM)	--	--