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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RJF was profitable.
In the past year RJF had a positive cash flow from operations.
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
RJF has a Return On Assets (2.62%) which is comparable to the rest of the industry.
The Return On Equity of RJF (17.85%) is better than 83.69% of its industry peers.
RJF has a worse Return On Invested Capital (3.01%) than 63.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
RJF's Profit Margin of 13.93% is in line compared to the rest of the industry. RJF outperforms 51.07% of its industry peers.
In the last couple of years the Profit Margin of RJF has remained more or less at the same level.
RJF has a Operating Margin of 18.33%. This is in the lower half of the industry: RJF underperforms 63.09% of its industry peers.
RJF's Operating Margin has been stable in the last couple of years.
RJF has a Gross Margin of 84.86%. This is amongst the best in the industry. RJF outperforms 88.84% of its industry peers.
RJF's Gross Margin has declined in the last couple of years.
| 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
RJF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RJF has more shares outstanding
Compared to 1 year ago, RJF has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.08, we must say that RJF is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.08, RJF is not doing good in the industry: 76.39% of the companies in the same industry are doing better.
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's Debt to FCF ratio of 30.42 is in line compared to the rest of the industry. RJF outperforms 45.06% of its industry peers.
RJF has a Debt/Equity ratio of 4.92. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RJF (4.92) is worse than 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
RJF has a Current Ratio of 0.27. This is a bad value and indicates that RJF is not financially healthy enough and could expect problems in meeting its short term obligations.
RJF has a Current ratio of 0.27. This is amonst the worse of the industry: RJF underperforms 86.27% of its industry peers.
A Quick Ratio of 0.27 indicates that RJF may have some problems paying its short term obligations.
The Quick ratio of RJF (0.27) is worse than 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
RJF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.01%, which is quite impressive.
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.
Looking at the last year, RJF shows a quite strong growth in Revenue. The Revenue has grown by 12.02% in the last year.
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.
Based on estimates for the next years, RJF will show a small growth in Revenue. The Revenue will grow by 6.70% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.97, which indicates a correct valuation of RJF.
Compared to the rest of the industry, the Price/Earnings ratio of RJF is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RJF to the average of the S&P500 Index (27.45), we can say RJF is valued slightly cheaper.
RJF is valuated correctly with a Price/Forward Earnings ratio of 14.24.
RJF's Price/Forward Earnings is on the same level as the industry average.
RJF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 14.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RJF is valued cheaper than 90.56% of the companies in the same industry.
RJF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RJF is cheaper than 64.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 8.35 |
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)3.7
PEG (5Y)0.98
EPS Next 2Y5.74%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
RJF has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
RJF's Dividend Yield is slightly below the industry average, which is at 8.10.
Compared to an average S&P500 Dividend Yield of 2.37, RJF's dividend is way lower than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RJF decreased recently.
Dividend Growth(5Y)6.69%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
18.39% 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.
DP18.39%
EPS Next 2Y5.74%
EPS Next 3Y8.07%
160
+1.82 (+1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners78.43%
Inst Owner Change-56.78%
Ins Owners0.51%
Ins Owner Change0.08%
Market Cap32.28B
Analysts70.53
Price Target164.22 (2.64%)
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 | 14.97 | ||
| Fwd PE | 14.24 | ||
| P/S | 2.06 | ||
| P/FCF | 16.34 | ||
| P/OCF | 14.89 | ||
| P/B | 2.64 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)10.69
EY6.68%
EPS(NY)11.24
Fwd EY7.02%
FCF(TTM)9.79
FCFY6.12%
OCF(TTM)10.75
OCFY6.72%
SpS77.55
BVpS60.53
TBVpS51.34
PEG (NY)3.7
PEG (5Y)0.98
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%