Analysts rate Royal Bank Stock (RY:TSX) with a Buy rating and CAD 138 price target

Based on the Royal Bank of Canada Stock Forecast from 15 analysts, the average analyst RY stock price target is CAD 138.36 over the next 12 months. Royal Bank of Canada’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Royal Bank of Canada is Slightly Bullish , which is based on 8 positive signals and 6 negative signals. At the last closing, Royal Bank of Canada stock price was CAD 118.08Royal Bank of Canada stock price has changed by -10.62% over the past week, -9.60% over the past month and -7.97% over the last year.

 

About Royal Bank of Canada (RY:TSX):

Royal Bank of Canada operates as a diversified financial service company worldwide. The company’s Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. The company was founded in 1864 and is headquartered in Toronto, Canada.

 

What we like:

High market capitalization

RY stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

Royal Bank stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior total returns

RY stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

Royal Bank stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the stock analysis and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Superior Earnings Growth

Royal Bank stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

Royal Bank stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth

RY stock has shown top quartile dividend growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility

The total returns for RY stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

RY stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

RY stock is trading high compared to its peers median on a price to book value basis.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Negative cashflow

Royal Bank stock had negative total cash flow in the most recent four quarters.