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 237 industry peers in the Capital Markets industry. RJF has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Of the past 5 years RJF 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.62%, RJF is in line with its industry, outperforming 48.95% of the companies in the same industry.
With an excellent Return On Equity value of 17.85%, RJF belongs to the best of the industry, outperforming 83.54% of the companies in the same industry.
With a Return On Invested Capital value of 3.01%, RJF is not doing good in the industry: 63.29% of the companies in the same industry are doing better.
RJF had an Average Return On Invested Capital over the past 3 years of 2.70%. This is significantly below the industry average of 7.88%.
The last Return On Invested Capital (3.01%) for RJF is above the 3 year average (2.70%), which is a sign of increasing profitability.
| 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 has a Profit Margin (13.93%) 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.
RJF's Operating Margin of 18.33% is on the low side compared to the rest of the industry. RJF is outperformed by 62.45% of its industry peers.
RJF's Operating Margin has been stable in the last couple of years.
RJF has a better Gross Margin (84.86%) than 88.61% 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
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 0.09. This is a bad value and indicates that RJF is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.09, RJF is doing worse than 73.42% of the companies in the same industry.
The Debt to FCF ratio of RJF is 30.42, which is on the high side as it means it would take RJF, 30.42 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 30.42, RJF perfoms like the industry average, outperforming 45.57% of the companies in the same industry.
RJF has a Debt/Equity ratio of 4.92. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.92, RJF is doing worse than 84.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.92 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 0.09 |
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 85.65% of its industry peers.
A Quick Ratio of 0.27 indicates that RJF may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.27, RJF is doing worse than 85.65% of the companies in the same industry.
| 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 nice 13.54% 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.
The Revenue has grown by 14.86% in the past year. This is quite good.
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)13.54%
EPS 3Y12.53%
EPS 5Y15.29%
EPS Q2Q%-8.79%
Revenue 1Y (TTM)14.86%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%5.27%
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 7.23% on average per year.
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 Y4.4%
EPS Next 2Y6.69%
EPS Next 3Y8.07%
EPS Next 5Y7.23%
Revenue Next Year9.9%
Revenue Next 2Y8.93%
Revenue Next 3Y8.48%
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
Based on the Price/Earnings ratio of 15.90, the valuation of RJF can be described as correct.
RJF's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.03, RJF is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.56, the valuation of RJF can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RJF is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, RJF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 14.56 |
4.2 Price Multiples
RJF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RJF is cheaper than 89.87% 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 63.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.87 | ||
| EV/EBITDA | 8.7 |
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)3.61
PEG (5Y)1.04
EPS Next 2Y6.69%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, RJF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.25, RJF is paying slightly less dividend.
With a Dividend Yield of 1.20, RJF pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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.
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 2Y6.69%
EPS Next 3Y8.07%
166.62
+0.14 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners78.43%
Inst Owner Change-0.53%
Ins Owners0.51%
Ins Owner Change0.11%
Market Cap33.32B
Analysts70.53
Price Target176 (5.63%)
Short Float %4.57%
Short Ratio7.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)7.17%
PT rev (3m)7.9%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 14.56 | ||
| P/S | 2.13 | ||
| P/FCF | 16.87 | ||
| P/OCF | 15.37 | ||
| P/B | 2.73 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)10.48
EY6.29%
EPS(NY)11.44
Fwd EY6.87%
FCF(TTM)9.88
FCFY5.93%
OCF(TTM)10.84
OCFY6.51%
SpS78.22
BVpS61.06
TBVpS51.79
PEG (NY)3.61
PEG (5Y)1.04
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 | 0.09 |
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)13.54%
EPS 3Y12.53%
EPS 5Y15.29%
EPS Q2Q%-8.79%
EPS Next Y4.4%
EPS Next 2Y6.69%
EPS Next 3Y8.07%
EPS Next 5Y7.23%
Revenue 1Y (TTM)14.86%
Revenue growth 3Y14.62%
Revenue growth 5Y13.21%
Sales Q2Q%5.27%
Revenue Next Year9.9%
Revenue Next 2Y8.93%
Revenue Next 3Y8.48%
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%