Fundamental analysis RY (Royal Bank of Canada)

Updated on 06/08/2026

We analyzed Royal Bank of Canada stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 7/10, meaning medium quality, and a P/FCF valuation multiple of 5.3×.

Sector: Banks - Diversified. Listing: US. Current price: 194.04 USD.

Lubin scoring methodology

Royal Bank of Canada (RY)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Bettin-Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The 10 quantitative criteria analyzed

1. Profitable: positive net margin
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Cash profitability: free cash flow margin > 10% of revenue
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Bettin-Mauboussin Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Frequently asked questions

Is Royal Bank of Canada a quality stock?

Royal Bank of Canada gets a quality score of 7/10 (medium quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Royal Bank of Canada's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Royal Bank of Canada's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Royal Bank of Canada stock is 5.3×. At Lubin Investment, valuation is judged separately from quality.

Where to see Royal Bank of Canada's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/RY?lng=en.

Other stocks in the Banks Diversified sector

• Bank of NT Butterfield & Son (NTB) — score 9/10, P/FCF 9.3×
• Alior Bank (ALR.WA) — score 9/10, P/FCF 4.1×
• Standard Chartered (STAN.L) — score 9/10, P/FCF 142.5×
• HSBC Holdings (HSBC) — score 8/10, P/FCF 12.7×
• Sumitomo Mitsui Financial Group (SMFG) — score 8/10, P/FCF 5.2×

Go further

👉 See the full interactive analysis of RY

Other resources : Detailed methodology · All stocks in the Banks Diversified sector · Stocks rated 10 out of 10 · Top quality companies · Lubin Investment pricing.