RAYMOND JAMES FINANCIAL INC (RJF) Stock Fundamental Analysis
NYSE:RJF - New York Stock Exchange, Inc. - US7547301090 - Common Stock - Currency: USD
RJF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. While RJF is still in line with the averages on profitability rating, there are concerns on its financial health. RJF is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RJF had positive earnings in the past year.
RJF had a positive operating cash flow in the past year.
Each year in the past 5 years RJF has been profitable.
RJF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of RJF (2.62%) is comparable to the rest of the industry.
RJF's Return On Equity of 17.85% is amongst the best of the industry. RJF outperforms 83.69% of its industry peers.
With a Return On Invested Capital value of 3.01%, RJF is not doing good in the industry: 63.52% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for RJF is significantly below the industry average of 7.84%.
The 3 year average ROIC (2.70%) for RJF is below the current ROIC(3.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 17.85% | ||
| ROIC | 3.01% |
ROA(3y)2.18%
ROA(5y)2.11%
ROE(3y)16.81%
ROE(5y)15.79%
ROIC(3y)2.7%
ROIC(5y)2.83%
1.3 Margins
Looking at the Profit Margin, with a value of 13.93%, RJF is in line with its industry, outperforming 51.07% of the companies in the same industry.
RJF's Profit Margin has been stable in the last couple of years.
RJF has a worse Operating Margin (18.33%) than 63.09% of its industry peers.
In the last couple of years the Operating Margin of RJF has remained more or less at the same level.
The Gross Margin of RJF (84.86%) is better than 88.84% of its industry peers.
In the last couple of years the Gross Margin of RJF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.33% | ||
| PM (TTM) | 13.93% | ||
| GM | 84.86% |
OM growth 3Y-1.98%
OM growth 5Y0.99%
PM growth 3Y-0.85%
PM growth 5Y1.41%
GM growth 3Y-4.48%
GM growth 5Y-2.34%
2. Health
2.1 Basic Checks
Compared to 1 year ago, RJF has less shares outstanding
The number of shares outstanding for RJF has been increased compared to 5 years ago.
The debt/assets ratio for RJF has been reduced compared to a year ago.
2.2 Solvency
RJF has an Altman-Z score of 0.08. This is a bad value and indicates that RJF is not financially healthy and even has some risk of bankruptcy.
RJF's Altman-Z score of 0.08 is on the low side compared to the rest of the industry. RJF is outperformed by 76.39% of its industry peers.
RJF has a debt to FCF ratio of 30.42. This is a negative value and a sign of low solvency as RJF would need 30.42 years to pay back of all of its debts.
RJF has a Debt to FCF ratio of 30.42. This is comparable to the rest of the industry: RJF outperforms 45.06% of its industry peers.
A Debt/Equity ratio of 4.92 is on the high side and indicates that RJF has dependencies on debt financing.
RJF has a Debt to Equity ratio of 4.92. This is amonst the worse of the industry: RJF underperforms 85.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.92 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 0.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.27 indicates that RJF may have some problems paying its short term obligations.
With a Current ratio value of 0.27, RJF is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
A Quick Ratio of 0.27 indicates that RJF may have some problems paying its short term obligations.
RJF's Quick ratio of 0.27 is on the low side compared to the rest of the industry. RJF is outperformed by 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.01% over the past year.
RJF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.29% yearly.
The Revenue has grown by 12.02% in the past year. This is quite good.
Measured over the past years, RJF shows a quite strong growth in Revenue. The Revenue has been growing by 13.21% on average per year.
EPS 1Y (TTM)23.01%
EPS 3Y12.53%
EPS 5Y15.29%
EPS Q2Q%4.76%
Revenue 1Y (TTM)12.02%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%9.14%
3.2 Future
The Earnings Per Share is expected to grow by 7.23% on average over the next years.
RJF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.70% yearly.
EPS Next Y4.05%
EPS Next 2Y5.74%
EPS Next 3Y8.07%
EPS Next 5Y7.23%
Revenue Next Year8.69%
Revenue Next 2Y7.43%
Revenue Next 3Y6.94%
Revenue Next 5Y6.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.71, which indicates a correct valuation of RJF.
RJF's Price/Earnings ratio is in line with the industry average.
RJF is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.00 indicates a correct valuation of RJF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RJF is on the same level as its industry peers.
RJF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 14 |
4.2 Price Multiples
RJF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RJF is cheaper than 90.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RJF is valued a bit cheaper than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.63
PEG (5Y)0.96
EPS Next 2Y5.74%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
RJF has a Yearly Dividend Yield of 1.25%.
RJF's Dividend Yield is slightly below the industry average, which is at 8.10.
With a Dividend Yield of 1.25, RJF pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of RJF is nicely growing with an annual growth rate of 6.69%!
RJF has paid a dividend for at least 10 years, which is a reliable track record.
RJF has decreased its dividend recently.
Dividend Growth(5Y)6.69%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RJF pays out 18.39% of its income as dividend. This is a sustainable payout ratio.
RJF's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP18.39%
EPS Next 2Y5.74%
EPS Next 3Y8.07%
157.28
-2.72 (-1.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners78.43%
Inst Owner Change-0.02%
Ins Owners0.51%
Ins Owner Change0.08%
Market Cap31.73B
Analysts70.53
Price Target164.22 (4.41%)
Short Float %4.87%
Short Ratio7.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.86
Dividend Growth(5Y)6.69%
DP18.39%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.05%
Min EPS beat(2)-1.85%
Max EPS beat(2)7.96%
EPS beat(4)3
Avg EPS beat(4)7.26%
Min EPS beat(4)-1.85%
Max EPS beat(4)21.01%
EPS beat(8)4
Avg EPS beat(8)1.36%
EPS beat(12)5
Avg EPS beat(12)-0.05%
EPS beat(16)8
Avg EPS beat(16)2.87%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)0.86%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)3.25%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)6
Avg Revenue beat(12)0.99%
Revenue beat(16)10
Avg Revenue beat(16)1.78%
PT rev (1m)1.26%
PT rev (3m)-11.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.37%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-6.3%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-4.83%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 14 | ||
| P/S | 2.03 | ||
| P/FCF | 16.07 | ||
| P/OCF | 14.64 | ||
| P/B | 2.6 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)10.69
EY6.8%
EPS(NY)11.24
Fwd EY7.14%
FCF(TTM)9.79
FCFY6.22%
OCF(TTM)10.75
OCFY6.83%
SpS77.55
BVpS60.53
TBVpS51.34
PEG (NY)3.63
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 17.85% | ||
| ROCE | 17.56% | ||
| ROIC | 3.01% | ||
| ROICexc | 3.47% | ||
| ROICexgc | 3.61% | ||
| OM | 18.33% | ||
| PM (TTM) | 13.93% | ||
| GM | 84.86% | ||
| FCFM | 12.62% |
ROA(3y)2.18%
ROA(5y)2.11%
ROE(3y)16.81%
ROE(5y)15.79%
ROIC(3y)2.7%
ROIC(5y)2.83%
ROICexc(3y)3.1%
ROICexc(5y)3.29%
ROICexgc(3y)3.24%
ROICexgc(5y)3.43%
ROCE(3y)16.29%
ROCE(5y)15.56%
ROICexcg growth 3Y-5.07%
ROICexcg growth 5Y-2.05%
ROICexc growth 3Y-5.21%
ROICexc growth 5Y-2.1%
OM growth 3Y-1.98%
OM growth 5Y0.99%
PM growth 3Y-0.85%
PM growth 5Y1.41%
GM growth 3Y-4.48%
GM growth 5Y-2.34%
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.92 | ||
| Debt/FCF | 30.42 | ||
| Debt/EBITDA | 19.68 | ||
| Cap/Depr | 103.76% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 71.01% | ||
| Profit Quality | 90.6% | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.08 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)94.04%
Cap/Depr(5y)88.31%
Cap/Sales(3y)1.17%
Cap/Sales(5y)1.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.01%
EPS 3Y12.53%
EPS 5Y15.29%
EPS Q2Q%4.76%
EPS Next Y4.05%
EPS Next 2Y5.74%
EPS Next 3Y8.07%
EPS Next 5Y7.23%
Revenue 1Y (TTM)12.02%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%9.14%
Revenue Next Year8.69%
Revenue Next 2Y7.43%
Revenue Next 3Y6.94%
Revenue Next 5Y6.7%
EBIT growth 1Y18.52%
EBIT growth 3Y12.35%
EBIT growth 5Y14.33%
EBIT Next Year-15.86%
EBIT Next 3Y-0.6%
EBIT Next 5Y4%
FCF growth 1Y174.92%
FCF growth 3Y-33.31%
FCF growth 5Y34.75%
OCF growth 1Y186.1%
OCF growth 3Y-31.3%
OCF growth 5Y30.15%