Royal Bank of Canada cash flow to debt ratio of 6.61% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Royal Bank of Canada's free cash flow has increased 153.98% from $20.86G last year to $52.98G, signaling increasing performance

Royal Bank of Canada's debt to equity ratio is 2.77, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Royal Bank of Canada's debt has decreased relative to shareholder equity from 6.13 last year to 2.77 today, signaling strengthened financials

Royal Bank of Canada has a net debt to EBITDA ratio of 26.02x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Royal Bank of Canada earns at least as much interest as it pays. Interest obligations are fully covered.

Royal Bank of Canada's profit margin has increased (52.45%) in the last year from 12.07% to 18.40%, signaling increasing performance

Royal Bank of Canada's short-term liabilities of $1.55T exceed its short-term assets of $206.49G, signaling financial risk

Royal Bank of Canada's return on assets of 0.92% is lower than the 5.00% threshold, indicating inefficient asset utilization

Royal Bank of Canada's return on equity of 15.95%, is higher than 15.00%, indicating good performance

Royal Bank of Canada's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Royal Bank of Canada had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Royal Bank of Canada has positive free cash flow, indicating the company generates cash after capital expenditures

Royal Bank of Canada has a free cash flow yield of 18.79%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Royal Bank of Canada's yearly earnings has increased 25.46% since last year from $16.23G to $20.36G, signaling increasing performance

Royal Bank of Canada's yearly revenue has increased 2.13% since last year from $134.49G to $137.36G, signaling increasing performance

ROIC 0.97% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Royal Bank of Canada's 3-year revenue CAGR of 27.14% is positive, indicating growing revenue over the past 3 years

Royal Bank of Canada had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance

Royal Bank of Canada had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Royal Bank of Canada has insufficient data to evaluate this check.

Royal Bank of Canada has an earnings yield of 7.83%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Royal Bank of Canada is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Royal Bank of Canada has an EV/EBITDA ratio of 30.71x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Royal Bank of Canada is undervalued relative to its fair value price of 354.01 based on Earnings Fair Value model

Royal Bank of Canada has a PEG-ratio under 1 which is considered undervalued

Royal Bank of Canada has a price-to-book ratio of 2.85x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Royal Bank of Canada has a price-to-sales ratio of 3.33x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue