RAYMOND JAMES FINANCIAL INC (RJF) Stock Fundamental Analysis
NYSE:RJF - New York Stock Exchange, Inc. - US7547301090 - Common Stock - Currency: USD
Overall RJF gets a fundamental rating of 4 out of 10. We evaluated RJF against 225 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
In the past year RJF was profitable.
RJF had a positive operating cash flow in the past year.
Each year in the past 5 years RJF has been profitable.
Of the past 5 years RJF 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RJF (2.48%) is comparable to the rest of the industry.
With an excellent Return On Equity value of 17.64%, RJF belongs to the best of the industry, outperforming 82.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.87%, RJF is doing worse than 63.47% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RJF is below the industry average of 6.76%.
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
With a Profit Margin value of 13.80%, RJF perfoms like the industry average, outperforming 46.12% of the companies in the same industry.
RJF's Profit Margin has been stable in the last couple of years.
RJF has a Operating Margin of 18.13%. This is in the lower half of the industry: RJF underperforms 60.73% 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 83.72% is amongst the best of the industry. RJF outperforms 86.30% 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.
RJF has more shares outstanding than it did 5 years ago.
RJF has a better debt/assets ratio than last year.
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's Altman-Z score of 0.06 is on the low side compared to the rest of the industry. RJF is outperformed by 77.17% of its industry peers.
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 42.01% 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.
With a Debt to Equity ratio value of 5.14, RJF is not doing good in the industry: 84.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.14 | ||
| Debt/FCF | 30.79 | ||
| Altman-Z | 0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.28 indicates that RJF may have some problems paying its short term obligations.
RJF has a Current ratio of 0.28. This is amonst the worse of the industry: RJF underperforms 82.19% of its industry peers.
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.
RJF's Quick ratio of 0.28 is on the low side compared to the rest of the industry. RJF is outperformed by 82.19% 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 25.80% 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.
RJF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.48%.
RJF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.21% yearly.
EPS 1Y (TTM)25.8%
EPS 3Y12.53%
EPS 5Y15.29%
EPS Q2Q%22.08%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%17.39%
3.2 Future
Based on estimates for the next years, RJF will show a small growth in Earnings Per Share. The EPS will grow by 7.22% on average per year.
RJF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.70% yearly.
EPS Next Y10.57%
EPS Next 2Y9.57%
EPS Next 3Y9.53%
EPS Next 5Y7.22%
Revenue Next Year12.26%
Revenue Next 2Y9.63%
Revenue Next 3Y8.85%
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.
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 14.32, 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.
Compared to an average S&P500 Price/Earnings ratio of 29.63, RJF is valued rather cheaply.
RJF is valuated correctly with a Price/Forward Earnings ratio of 12.56.
RJF's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, RJF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RJF indicates a rather cheap valuation: RJF is cheaper than 89.95% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RJF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.92 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
RJF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.35
PEG (5Y)0.94
EPS Next 2Y9.57%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, RJF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 10.00, RJF is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.29, 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 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 2Y9.57%
EPS Next 3Y9.53%
151.54
-3.53 (-2.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners75.88%
Inst Owner Change-1.8%
Ins Owners0.43%
Ins Owner Change0.3%
Market Cap31.05B
Analysts72.63
Price Target176.18 (16.26%)
Short Float %2.72%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.86
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)11.5%
PT rev (3m)29.46%
EPS NQ rev (1m)2.84%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)3.91%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.56 | ||
| P/S | 2.08 | ||
| P/FCF | 15.92 | ||
| P/OCF | 14.41 | ||
| P/B | 2.66 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)10.58
EY6.98%
EPS(NY)12.07
Fwd EY7.96%
FCF(TTM)9.52
FCFY6.28%
OCF(TTM)10.52
OCFY6.94%
SpS72.83
BVpS56.97
TBVpS47.76
PEG (NY)1.35
PEG (5Y)0.94
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)25.8%
EPS 3Y12.53%
EPS 5Y15.29%
EPS Q2Q%22.08%
EPS Next Y10.57%
EPS Next 2Y9.57%
EPS Next 3Y9.53%
EPS Next 5Y7.22%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%17.39%
Revenue Next Year12.26%
Revenue Next 2Y9.63%
Revenue Next 3Y8.85%
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%