| RY Stock | | | CAD 176.16 0.36 0.20% |
Taking into consideration Royal Bank's profitability measurements, Royal Bank's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Royal Bank's ability to earn profits and add value for shareholders. At this time, Royal Bank's
EV To Sales is very stable compared to the past year. As of the 30th of November 2024,
Operating Cash Flow Sales Ratio is likely to grow to 0.46, while
Price To Sales Ratio is likely to drop 2.13. At this time, Royal Bank's
Income Quality is very stable compared to the past year.
For Royal Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Royal Bank to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Royal Bank of utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Royal Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Royal Bank of over time as well as its relative position and ranking within its peers.
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Please note, there is a significant difference between Royal Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Royal Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Royal Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Royal Bank Shares Owned By Institutions vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Royal Bank's current stock value. Our valuation model uses many indicators to compare Royal Bank value to that of its competitors to determine the firm's financial worth.
Royal Bank of is currently regarded as top stock in price to book category among its peers. It is rated
fourth in shares owned by institutions category among its peers producing about
24.24 of Shares Owned By Institutions per Price To Book. Comparative valuation analysis is a catch-all model that can be used if you cannot value Royal Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Royal Bank's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Royal Shares Owned By Institutions vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Royal Bank | P/B | = | MV Per ShareBV Per Share |
| = | 2.16 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Royal Bank | Shares Held by Institutions | = | Funds and Banks | + | Firms |
| = | 52.48 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Royal Shares Owned By Institutions Comparison
Royal Bank is currently under evaluation in shares owned by institutions category among its peers.
Royal Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Royal Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Royal Bank will eventually generate negative long term returns. The profitability progress is the general direction of Royal Bank's change in net profit over the period of time. It can combine
multiple indicators of Royal Bank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Royal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Royal Bank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Royal Bank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Royal Bank's important profitability drivers and their relationship over time.
Use Royal Bank in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Royal Bank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Royal Bank will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Royal Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Royal Bank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Royal Bank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Royal Bank of to buy it.
The correlation of Royal Bank is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Royal Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Royal Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Royal Bank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Royal Bank position
In addition to having Royal Bank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Robots And Drones
Large technology companies that are involved in development and manufacturing of drones, robots, or robotic equipment across mechanical engineering, electrical engineering, mathematics and computer science fields. Drones and robotics are projected to significantly grow in demand in the next 5 years. The Robots And Drones theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Robots And Drones Theme or any other
thematic opportunities.
When determining whether Royal Bank offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Royal Bank's
financial statements, including income statements, balance sheets, and cash flow statements, to assess its
financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Royal Bank Of Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Royal Bank Of Stock: Check out
Your Equity Center.
You can also try the
Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Royal Bank's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Royal Bank at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Royal Bank's income statement, its balance sheet, and the statement of cash flows.
Potential Royal Bank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Royal Bank investors may work on each financial statement separately, they are all related. The changes in Royal Bank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Royal Bank's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
