Royal Bank Of Canada Common Stock (RY)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 15.4% above cost of capital
• Attractive 2.6% dividend yield providing steady income returns
• Established organization with 97,469 employees providing operational scale

Concerns

• Altman Z-Score of 0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Royal Bank Of Canada Common Stock is a mega-cap financial services company valued at $242.1 billion. The business generates $63.4 billion in annual revenue with a 8.9% net margin. From a quality standpoint, Royal shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.1 warrants caution. On valuation, the stock is reasonably priced at 17.3x earnings, with trades above its Graham Number with a negative 13% margin. Growth dynamics show revenue growing at 7.2% and profit growth of 12.8%. The 2.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Royal's dominant market position and scale advantages create a durable moat that supports premium valuation over time. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer