Royal Bank of Canada (RY.TO) stock analysis

In our weekly check, Royal Bank of Canada is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 1, red flags: 6.

About Royal Bank of Canada

Royal Bank of Canada is a Financial Services company (Banks - Diversified) based in Canada, listed on TSX as RY.TO.

What our checks show for RY.TO

Red flags

• The net margin fell by 15.9 points over 5 years, to 15.9%: the company keeps less of each sale as profit.
• The gross margin fell by 51.5 points, to 48.5%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 22.2% a year.
• Return on capital (ROCE) is only 1.2%.

Warning signs

• The stock has fallen as much as 57% from a peak. Would you have held through that?

Strengths

• Operating cash flow is 2.12x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 18.2 points from today's 15.9%.
• Revenue grew 43.3% a year over the last 3 years.
• Earnings per share grew 12.8% a year over the last 3 years.
• Net profit grew 12.9% a year over the last 3 years.
• Free cash flow is 32.1% of revenue: cash for dividends, buybacks or growth.

Next earnings report: 2026-12-03

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HSBC · WFC · MUFG · BAC · TD · C

Questions

What grade does Royal Bank of Canada (RY.TO) have?

In our weekly check, Royal Bank of Canada is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 1, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RY.TO stock?

This week's biggest flags for Royal Bank of Canada: Margins falling, Gross margin falling, Weak revenue forecast. In total 7 of 25 checks show a warning or a red flag.

What does Royal Bank of Canada do?

Royal Bank of Canada is a Financial Services company (Banks - Diversified) based in Canada, listed on TSX as RY.TO.

When does Royal Bank of Canada report earnings next?

The next earnings report is expected on 2026-12-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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