TSE:RY

Royal Bank (RY.TO)

270.60
-0.34 (0.13%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
1475 watching
0
Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 52 opinions in the last 12 months.

Royal Bank (RY) has been reviewed positively by multiple financial experts, highlighting its stable performance and strong management. It has shown substantial growth, with a commendable increase in both profit margin and market position, benefiting from a robust capital markets business and the successful acquisition of HSBC Canada. However, some experts express caution, pointing out that RY is trading at high valuation metrics, with premium multiples that may lead to a restrictive growth outlook. A consensus emerges that while RY maintains its status as a leading Canadian bank with solid fundamentals, the valuation may limit near-term upside. Many analysts recommend holding the stock due to potential for steady dividends and modest growth in the longer term, suggesting RY is a core holding yet requiring vigilance concerning market fluctuations.

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Consensus
Buy
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Valuation
Overvalued
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Similar
TD,TD
BUY ON WEAKNESS
He is light in the banks, only owns NA-T because they have the best balance sheet in North America. RY had trouble investing their money outside of Canada. This one is on their radar and they will own it at the right price. Wait before buying banks.
DON'T BUY
Feels there is a lot of compression in the earnings of the stock and he doesn't see a major catalyst to any of the bank stocks going up a lot.
DON'T BUY
There is a lot of concern on how much 2nd party risks and contagion from Europe for all banks. Dividend is pretty stable and secure but what is a 5% dividend to stock is down 20%.
HOLD
Used to trade at a premium to all banks but is now trading at a discount to them. Thinks it will earn $4.50 this year and more next year. Trading at 10X earnings.
DON'T BUY
All Cdn banks have been pretty volatile sideways traders from around 2005. Considers that more as yield plays, not growth stories. In the short-term, they are being compressed on interest margins. There has also been a decline in consumer spending and mortgage lending has been flat. They could trade off a little more.
DON'T BUY
Expects they will hold their dividends. Management has said they have a lot of money but can't lend it to anyone, which means their margins are being squeezed. Earnings forecasts for 2012 have been literally falling like a stone. Would be much more interested at $36-$37.
DON'T BUY
Investors are not buying into their plans of increasing the business mix from capital markets activity, which can be a high return activity but very volatile.
WEAK BUY
For a long-term hold? Cdn banks trade globally at a premium to BV. Will be reporting very soon and he expects some weak trading numbers. They are now trying to make an international impact on the wealth management side of the business. Don't look for much growth over the next year. Expect dividends will be raised.
COMMENT
Cdn banks have 2 businesses, retail and investment. This bank closed their retail business in the US when it didn't work. The question is, how are they going to effectively reinvest all their excess cash. This will continue to plague them until there is some clarity.
COMMENT
Was his favourite bank stock for many years but switched to Toronto Dominion (TD-T) 2 years ago. Although they have the strongest historic management culture in Canada, TD made much better decisions about the US.
DON'T BUY
Canadian banks put in a bit of a major top and then fell. They are attempting to base, but there is no sign of a genuine breakout just yet.
BUY
Good entry point. They are probably the leaders in moving over to the wealth business. It is the cheapest of the bunch.
PAST TOP PICK
(A Top Pick Oct 25/10. Down 13.28%.) Expanded into Europe and the US but it hasn't paid off yet. Expect it will but it takes time.
BUY ON WEAKNESS
The market is getting close. First time he has not owned them. Would buy at $45. Dividend is pretty damned attractive. Likes TD and BNS as well.
TOP PICK
(A Top Pick Oct 20/10. Down 8.4%.) The dominant franchise in Canada. Because of US problems, they're selling at a discount rather than the premium they used to get. Management is taking steps to address their US problems. There will be expansion in their wealth management along with a more aggressive posture in their other areas. Good yield of almost 4.7%.
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