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 232 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.
In the past 5 years RJF has always 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.
Looking at the Return On Equity, with a value of 17.85%, RJF belongs to the top of the industry, outperforming 83.19% of the companies in the same industry.
RJF has a Return On Invested Capital of 3.01%. This is in the lower half of the industry: RJF underperforms 62.93% of its industry peers.
RJF had an Average Return On Invested Capital over the past 3 years of 2.70%. This is significantly below the industry average of 7.89%.
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 50.00% 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 18.33%. This is in the lower half of the industry: RJF underperforms 62.50% 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 88.36% 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
Compared to 5 years ago, RJF has more shares outstanding
RJF has a better debt/assets ratio than last year.
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.
RJF has a worse Altman-Z score (0.06) than 75.86% 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 (30.42) which is comparable to the rest of the industry.
A Debt/Equity ratio of 4.92 is on the high side and indicates that RJF has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.92, RJF is doing worse than 84.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.92 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 0.06 |
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.
The Current ratio of RJF (0.27) is worse than 85.34% of its industry peers.
A Quick Ratio of 0.27 indicates that RJF may have some problems paying its short term obligations.
RJF has a Quick ratio of 0.27. This is amonst the worse of the industry: RJF underperforms 85.34% 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.
The Earnings Per Share has been growing by 15.29% on average over the past years. This is quite good.
Looking at the last year, RJF shows a quite strong growth in Revenue. The Revenue has grown by 12.02% in the last year.
The Revenue has been growing by 13.21% on average over the past years. This is quite good.
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 Y3.72%
EPS Next 2Y5.66%
EPS Next 3Y7.33%
EPS Next 5Y7.23%
Revenue Next Year8.63%
Revenue Next 2Y6.79%
Revenue Next 3Y6.74%
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
A Price/Earnings ratio of 13.75 indicates a correct valuation of RJF.
The rest of the industry has a similar Price/Earnings ratio as RJF.
Compared to an average S&P500 Price/Earnings ratio of 26.25, RJF is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.10, RJF is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as RJF.
When comparing the Price/Forward Earnings ratio of RJF to the average of the S&P500 Index (22.15), we can say RJF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RJF is valued cheaper than 90.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RJF is valued a bit cheaper than 64.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.01 | ||
| EV/EBITDA | 7.49 |
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)0.9
EPS Next 2Y5.66%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
RJF has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.15, RJF is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, RJF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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.
The dividend of RJF decreased 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 2Y5.66%
EPS Next 3Y7.33%
146.98
-0.75 (-0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners76.03%
Inst Owner Change2.02%
Ins Owners0.47%
Ins Owner Change-0.51%
Market Cap29.65B
Analysts70.53
Price Target162.18 (10.34%)
Short Float %4.68%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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)-0.57%
PT rev (3m)-12.07%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-10.68%
EPS NY rev (1m)-2.69%
EPS NY rev (3m)-6.07%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-4.9%
Revenue NY rev (1m)-1.65%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 13.1 | ||
| P/S | 1.9 | ||
| P/FCF | 15.01 | ||
| P/OCF | 13.68 | ||
| P/B | 2.43 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)10.69
EY7.27%
EPS(NY)11.22
Fwd EY7.63%
FCF(TTM)9.79
FCFY6.66%
OCF(TTM)10.75
OCFY7.31%
SpS77.55
BVpS60.53
TBVpS51.34
PEG (NY)3.7
PEG (5Y)0.9
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 | 0.06 |
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 Y3.72%
EPS Next 2Y5.66%
EPS Next 3Y7.33%
EPS Next 5Y7.23%
Revenue 1Y (TTM)12.02%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%9.14%
Revenue Next Year8.63%
Revenue Next 2Y6.79%
Revenue Next 3Y6.74%
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%