Is it time to opt out of Royal Bank?
 | By Vlad Skutelnik | Macroaxis Story |
In this article I will break down Royal Bank. I will evaluate if Royal Bank shares are reasonably priced going into December. Royal Bank chance of financial distress is under 36.00 . Allowing for the 30-days total investment horizon, Royal Bank is expected to generate 0.47 times more return on investment than the market. However, the company is 2.12 times less risky than the market. It trades about 0.28 of its potential returns per unit of risk. The market is currently generating roughly 0.1 per unit of risk. We found thirty-one available financial ratios for Royal Bank which can be compared to its competitors. To make sure the equity is not overpriced, please check all Royal Bank fundamentals including its Short Ratio, Total Asset and the relationship between Debt to Equity and Number of Employees . Given that Royal Bank has Number of Shares Shorted of 4.31 M, we recommend you check out Royal Bank recent market performance to make sure the company can sustain itself down the road. Use Royal Bank to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Royal Bank to be traded at $86.31 in 30 days.
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Reviewed by Rifka Kats
The company is active under Financial Services sector as part of Banks—Diversified industry. This firm dividends can provide a clue to current valuation of the stock. Royal Bank one year expected dividend income is about $1.86 per share. About 48.0% of the company shares are owned by institutional investors. The book value of Royal Bank was at this time reported as 38.43. The company has Price/Earnings To Growth (PEG) ratio of 2.72. Royal Bank recorded earning per share (EPS) of 6.29. The entity last dividend was issued on 2019-10-23. The firm had 2:1 split on 2006-04-07.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Royal Bank. Your research has to be compared to or analyzed against Royal Bank's peers to derive any actionable benefits. When done correctly, Royal Bank's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Royal Bank.
Investing in Royal Bank, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Royal Bank along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Royal Bank's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Royal Bank's Liquidity
Royal Bank financial leverage refers to using borrowed capital as a funding source to finance Royal Bank of ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Royal Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Royal Bank's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Royal Bank's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Royal Bank's total debt and its cash.
Royal Bank Gross Profit
Royal Bank Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Royal Bank previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Royal Bank Gross Profit growth over the last 10 years. Please check Royal Bank's gross profit and other fundamental indicators for more details.
Royal Bank Correlation with Peers
Investors in Royal can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Royal Bank of. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Royal Bank and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Royal is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Royal for more details
Details
The modest gains experienced by current holders of Royal Bank has created some momentum for investors as it was traded today as low as 82.01 and as high as 82.55 per share. The company management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.6016. The very small Stock volatility is a good signal to investors with longer term investment horizons. Royal Bank preserves 117.6 b of current valuation. Royal Bank is selling for 82.20. This is 0.0122% increase. Day Low was 82.01. On the whole, our research shows that Royal Bank is very steady with below average odds of distress in the next two years. Our up-to-date buy or sell advice on the company is Buy.
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