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
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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
DON'T BUY
On a technical call, he is wary of both Bank of Montreal (BMO-T) and Royal (RY-T), the Royal in particular. This one hit a 62 year valuation high last year. Not particularly cheap.
DON'T BUY
The capital markets business has been sub-par. RY is a capital markets business. They have become one of the big global players. For this reason there is a drag on the stock. Prefers BNS or TD. Expects dividend growth going forward will be somewhat muted.
SELL
Largest chartered bank in Canada and management is quite good. However haven’t covered themselves with glory in the last year so is not as enthused anymore. Spending too much time making money out of their trading operations. If you own consider switching to Bank of Nova Scotia (BNS-T) or TD (TD-T).
TOP PICK
Canada’s largest bank. Using its currency and relative strength for acquisitions. \Canadian banks have a 2 or 3 year window to take advantage of how well they are regarded. Expect to see a big resumption in dividend grow the in the next 2–3 years.
COMMENT
In his mind this would be in the middle of the pack of large blue chip financials. You get a good solid dividend and a stock that will probably grow at 10%-11% a year. US operations are kind of sluggish. On his list National Bank (NA-T) is the best one.
DON'T BUY
Doesn’t like banks, as they have no earnings growth. Earnings are actually de-accelerating and there is so much acceleration in everything else. (He holds zero financials.)
BUY
A long-term hold at these prices. Expecting dividend increases in the 1st half of the year but this is probably largely built into the stock price. His favourite is Toronto Dominion (TD-T), which currently has the best earnings multiple but this one is his 2nd biggest position.
HOLD
Thinks banks will stay where they are. They are vital blue chips. Trying to absorb their recently obtained US operations. All the banks are boringly the same.
TOP PICK
Owned for years. Always owned some of it. Worst performing bank of big 5 in 2010. It is usually either first or second. US retail is still losing money while TD is making money in US. They will absolutely get it much better. There is a $10 gap in valuation to make up and all they have to do is half of it to get 17% return.
DON'T BUY
The banks are very much the same so if one under performs then it usually comes back. Good for the long term but thinks they will take a while to turn around.
DON'T BUY
Doesn’t own any Canadian banks that have too much US exposure. Great Canadian franchise but hasn’t made any money in the US.
BUY
More involved as an investment bank which means more volatility. They have to deal with their US banking business, which is not working out. At these levels, you can make money. He likes it.
HOLD
Expanding into Europe and Asia. 3 Quarters of disappointing earnings. A little concerned. It’s a core holding.
TOP PICK
Was downgraded because of volatility of their capital markets but this should recover with the economy. Likes their expansion into wealth management internationally.
HOLD
Came out with some pretty poor results and disappointed a lot of their shareholders. People don’t like surprises from their bank. US assets indicate that the level of risk is still higher than estimated.
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