RAYMOND JAMES FINANCIAL INC (RJF)
US7547301090 - Common Stock
We assign a fundamental rating of 4 out of 10 to RJF. RJF was compared to 222 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RJF had positive earnings in the past year.
In the past year RJF had a positive cash flow from operations.
RJF had positive earnings in each of the past 5 years.
RJF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RJF's Return On Assets of 2.48% is in line compared to the rest of the industry. RJF outperforms 47.47% of its industry peers.
With an excellent Return On Equity value of 17.64%, RJF belongs to the best of the industry, outperforming 83.41% of the companies in the same industry.
With a Return On Invested Capital value of 2.87%, RJF is not doing good in the industry: 64.52% 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 below the industry average of 6.64%.
The last Return On Invested Capital (2.87%) for RJF is above the 3 year average (2.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 17.64% | ||
| ROIC | 2.87% |
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
RJF has a Profit Margin (13.80%) which is in line with its industry peers.
RJF's Profit Margin has been stable in the last couple of years.
The Operating Margin of RJF (18.13%) is worse than 61.29% of its industry peers.
RJF's Operating Margin has been stable in the last couple of years.
The Gross Margin of RJF (83.72%) is better than 86.18% of its industry peers.
RJF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.13% | ||
| PM (TTM) | 13.8% | ||
| GM | 83.72% |
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
The number of shares outstanding for RJF has been reduced compared to 1 year ago.
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 0.06. This is a bad value and indicates that RJF is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.06, RJF is not doing good in the industry: 76.50% of the companies in the same industry are doing better.
RJF has a debt to FCF ratio of 30.79. This is a negative value and a sign of low solvency as RJF would need 30.79 years to pay back of all of its debts.
With a Debt to FCF ratio value of 30.79, RJF perfoms like the industry average, outperforming 44.70% of the companies in the same industry.
RJF has a Debt/Equity ratio of 5.14. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RJF (5.14) is worse than 84.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.14 | ||
| Debt/FCF | 30.79 | ||
| Altman-Z | 0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
RJF has a Current Ratio of 0.28. This is a bad value and indicates that RJF is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.28, RJF is not doing good in the industry: 79.26% of the companies in the same industry are doing better.
RJF has a Quick Ratio of 0.28. This is a bad value and indicates that RJF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RJF (0.28) is worse than 79.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.08% over the past year.
Measured over the past years, RJF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.29% on average per year.
RJF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.86%.
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)21.08%
EPS 3Y12.53%
EPS 5Y15.29%
EPS Q2Q%38.5%
Revenue 1Y (TTM)14.86%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%13.4%
3.2 Future
The Earnings Per Share is expected to grow by 7.22% 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 Y6.41%
EPS Next 2Y6.49%
EPS Next 3Y6.48%
EPS Next 5Y7.22%
Revenue Next Year11.69%
Revenue Next 2Y9.29%
Revenue Next 3Y8.61%
Revenue Next 5Y6.7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 15.59, which indicates a correct valuation of RJF.
The rest of the industry has a similar Price/Earnings ratio as RJF.
RJF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
With a Price/Forward Earnings ratio of 14.66, RJF is valued correctly.
RJF's Price/Forward Earnings is on the same level as the industry average.
RJF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
89.40% of the companies in the same industry are more expensive than RJF, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RJF is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.4 | ||
| EV/EBITDA | 8.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RJF does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.43
PEG (5Y)1.02
EPS Next 2Y6.49%
EPS Next 3Y6.48%
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 9.70.
With a Dividend Yield of 1.25, RJF pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
On average, the dividend of RJF grows each year by 6.69%, which is quite nice.
RJF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.69%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
18.60% of the earnings are spent on dividend by RJF. This is a low number and 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.
DP18.6%
EPS Next 2Y6.49%
EPS Next 3Y6.48%
RAYMOND JAMES FINANCIAL INC
NYSE:RJF (1/14/2025, 8:04:00 PM)
After market: 158 +1.28 (+0.82%)156.72
+2.51 (+1.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners75.88%
Inst Owner Change0%
Ins Owners0.43%
Ins Owner Change0%
Market Cap31.98B
Analysts71.58
Price Target158.01 (0.82%)
Short Float %2.83%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Dividend Growth(5Y)6.69%
DP18.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.46%
Min EPS beat(2)1.91%
Max EPS beat(2)21.01%
EPS beat(4)3
Avg EPS beat(4)6.82%
Min EPS beat(4)-0.9%
Max EPS beat(4)21.01%
EPS beat(8)3
Avg EPS beat(8)-0.71%
EPS beat(12)5
Avg EPS beat(12)0.52%
EPS beat(16)9
Avg EPS beat(16)5.15%
Revenue beat(2)1
Avg Revenue beat(2)0.89%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)3.25%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)3.25%
Revenue beat(8)3
Avg Revenue beat(8)0.09%
Revenue beat(12)7
Avg Revenue beat(12)1.55%
Revenue beat(16)11
Avg Revenue beat(16)2.53%
PT rev (1m)1.97%
PT rev (3m)19.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3%
EPS NY rev (1m)1.03%
EPS NY rev (3m)5.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 14.66 | ||
| P/S | 2.14 | ||
| P/FCF | 16.4 | ||
| P/OCF | 14.84 | ||
| P/B | 2.74 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 8.16 |
EPS(TTM)10.05
EY6.41%
EPS(NY)10.69
Fwd EY6.82%
FCF(TTM)9.56
FCFY6.1%
OCF(TTM)10.56
OCFY6.74%
SpS73.14
BVpS57.21
TBVpS47.97
PEG (NY)2.43
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 17.64% | ||
| ROCE | 16.96% | ||
| ROIC | 2.87% | ||
| ROICexc | 3.38% | ||
| ROICexgc | 3.53% | ||
| OM | 18.13% | ||
| PM (TTM) | 13.8% | ||
| GM | 83.72% | ||
| FCFM | 13.07% |
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-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.14 | ||
| Debt/FCF | 30.79 | ||
| Debt/EBITDA | 20.81 | ||
| Cap/Depr | 114.53% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 74.7% | ||
| Profit Quality | 94.71% | ||
| Current Ratio | 0.28 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 0.06 |
F-Score8
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)21.08%
EPS 3Y12.53%
EPS 5Y15.29%
EPS Q2Q%38.5%
EPS Next Y6.41%
EPS Next 2Y6.49%
EPS Next 3Y6.48%
EPS Next 5Y7.22%
Revenue 1Y (TTM)14.86%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%13.4%
Revenue Next Year11.69%
Revenue Next 2Y9.29%
Revenue Next 3Y8.61%
Revenue Next 5Y6.7%
EBIT growth 1Y12.38%
EBIT growth 3Y12.35%
EBIT growth 5Y14.33%
EBIT Next Year-15.86%
EBIT Next 3Y-0.6%
EBIT Next 5Y4%
FCF growth 1Y152.89%
FCF growth 3Y-33.31%
FCF growth 5Y34.75%
OCF growth 1Y161.33%
OCF growth 3Y-31.3%
OCF growth 5Y30.15%