RAYMOND JAMES FINANCIAL INC (RJF)
US7547301090 - Common Stock
We assign a fundamental rating of 3 out of 10 to RJF. RJF was compared to 218 industry peers in the Capital Markets industry. There are concerns on the financial health of RJF while its profitability can be described as average. RJF has a decent growth rate and is not valued too expensively.
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.
In multiple years RJF reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.34%, RJF is in line with its industry, outperforming 48.84% of the companies in the same industry.
With an excellent Return On Equity value of 16.88%, RJF belongs to the best of the industry, outperforming 80.93% of the companies in the same industry.
RJF's Return On Invested Capital of 2.78% is on the low side compared to the rest of the industry. RJF is outperformed by 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 16.88% | ||
| ROIC | 2.78% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RJF has a Profit Margin (13.09%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of RJF has remained more or less at the same level.
The Operating Margin of RJF (17.73%) is worse than 62.33% of its industry peers.
In the last couple of years the Operating Margin of RJF has remained more or less at the same level.
RJF's Gross Margin of 83.84% is amongst the best of the industry. RJF outperforms 85.12% of its industry peers.
RJF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.73% | ||
| PM (TTM) | 13.09% | ||
| GM | 83.84% |
OM growth 3Y-2.1%
OM growth 5Y0.91%
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
There is no outstanding debt for RJF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.06, we must say that RJF is in the distress zone and has some risk of bankruptcy.
RJF has a Altman-Z score of 0.06. This is in the lower half of the industry: RJF underperforms 78.14% of its industry peers.
RJF has a debt to FCF ratio of 31.31. This is a negative value and a sign of low solvency as RJF would need 31.31 years to pay back of all of its debts.
RJF's Debt to FCF ratio of 31.31 is in line compared to the rest of the industry. RJF outperforms 44.65% of its industry peers.
A Debt/Equity ratio of 5.24 is on the high side and indicates that RJF has dependencies on debt financing.
RJF has a Debt to Equity ratio of 5.24. This is amonst the worse of the industry: RJF underperforms 84.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.24 | ||
| Debt/FCF | 31.31 | ||
| Altman-Z | 0.06 |
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.
The Current ratio of RJF (0.27) is worse than 80.47% of its industry peers.
RJF has a Quick 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.
The Quick ratio of RJF (0.27) is worse than 80.47% 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 21.08%, which is quite impressive.
The Earnings Per Share has been growing by 15.29% on average over the past years. This is quite good.
The Revenue has grown by 14.86% in the past year. This is quite good.
The Revenue has been growing by 13.21% on average over the past years. This is quite good.
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
RJF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.77% yearly.
Based on estimates for the next years, RJF will show a small growth in Revenue. The Revenue will grow by 5.08% on average per year.
EPS Next Y5.9%
EPS Next 2Y6.15%
EPS Next 3Y6.24%
EPS Next 5Y2.77%
Revenue Next Year11.14%
Revenue Next 2Y8.8%
Revenue Next 3Y8.37%
Revenue Next 5Y5.08%
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.
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
RJF is valuated correctly with a Price/Earnings ratio of 16.44.
The rest of the industry has a similar Price/Earnings ratio as RJF.
When comparing the Price/Earnings ratio of RJF to the average of the S&P500 Index (29.20), we can say RJF is valued slightly cheaper.
RJF is valuated correctly with a Price/Forward Earnings ratio of 15.52.
RJF's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RJF to the average of the S&P500 Index (24.00), we can say RJF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
RJF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RJF is cheaper than 86.51% of the companies in the same industry.
RJF's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 9.99 |
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)2.79
PEG (5Y)1.07
EPS Next 2Y6.15%
EPS Next 3Y6.24%
5. Dividend
5.1 Amount
RJF has a Yearly Dividend Yield of 1.12%.
RJF's Dividend Yield is slightly below the industry average, which is at 9.01.
With a Dividend Yield of 1.12, RJF pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
On average, the dividend of RJF grows each year by 9.97%, which is quite nice.
RJF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.95% of the earnings are spent on dividend by RJF. This is a low number and sustainable payout ratio.
The dividend of RJF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.95%
EPS Next 2Y6.15%
EPS Next 3Y6.24%
RAYMOND JAMES FINANCIAL INC
NYSE:RJF (11/22/2024, 8:04:00 PM)
After market: 165.18 0 (0%)165.18
+1.4 (+0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap33.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 15.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.79
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 16.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.73% | ||
| PM (TTM) | 13.09% | ||
| GM | 83.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.08%
EPS 3Y12.53%
EPS 5Y
EPS Q2Q%
EPS Next Y5.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.86%
Revenue growth 3Y14.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y