RAYMOND JAMES FINANCIAL INC (RJF) Stock Fundamental Analysis
NYSE:RJF - New York Stock Exchange, Inc. - US7547301090 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RJF. RJF was compared to 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RJF had positive earnings in the past year.
RJF had a positive operating cash flow in the past year.
RJF had positive earnings in each of the past 5 years.
RJF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.62%, RJF perfoms like the industry average, outperforming 51.29% of the companies in the same industry.
The Return On Equity of RJF (17.85%) is better than 83.62% of its industry peers.
The Return On Invested Capital of RJF (3.01%) is worse than 63.79% 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 7.85%.
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 has a Profit Margin of 13.93%. This is comparable to the rest of the industry: RJF outperforms 50.86% 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's Operating Margin of 18.33% is on the low side compared to the rest of the industry. RJF is outperformed by 63.36% 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 88.36% 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
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 0.06. This is a bad value and indicates that RJF is not financially healthy and even 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 77.16% of its industry peers.
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.
RJF has a Debt to FCF ratio of 30.42. This is comparable to the rest of the industry: RJF outperforms 44.40% 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.
Looking at the Debt to Equity ratio, with a value of 4.92, RJF is doing worse than 85.78% 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.
RJF's Current ratio of 0.27 is on the low side compared to the rest of the industry. RJF is outperformed by 86.21% 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 86.21% 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.
RJF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.02%.
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
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.
The Revenue is expected to grow by 6.70% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.12, 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 (26.65), we can say RJF is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.44 indicates a correct valuation of RJF.
The rest of the industry has a similar Price/Forward Earnings ratio as RJF.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, RJF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RJF is valued cheaply inside the industry as 90.95% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RJF is valued a bit cheaper than the industry average as 64.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.42 | ||
| EV/EBITDA | 7.62 |
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)3.49
PEG (5Y)0.92
EPS Next 2Y5.74%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
RJF has a Yearly Dividend Yield of 1.35%.
RJF's Dividend Yield is slightly below the industry average, which is at 8.07.
Compared to an average S&P500 Dividend Yield of 2.44, RJF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of RJF grows each year by 6.69%, which is quite nice.
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
RJF pays out 18.39% of its income as dividend. This is a sustainable payout ratio.
The dividend of RJF is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.39%
EPS Next 2Y5.74%
EPS Next 3Y8.07%
150.96
+2.01 (+1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners78.43%
Inst Owner Change2.02%
Ins Owners0.51%
Ins Owner Change-0.02%
Market Cap30.46B
Analysts70.53
Price Target164.22 (8.78%)
Short Float %4.87%
Short Ratio6.53
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)1.26%
PT rev (3m)-10.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.3%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-5.77%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-4.93%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 13.44 | ||
| P/S | 1.95 | ||
| P/FCF | 15.42 | ||
| P/OCF | 14.05 | ||
| P/B | 2.49 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 7.62 |
EPS(TTM)10.69
EY7.08%
EPS(NY)11.24
Fwd EY7.44%
FCF(TTM)9.79
FCFY6.48%
OCF(TTM)10.75
OCFY7.12%
SpS77.55
BVpS60.53
TBVpS51.34
PEG (NY)3.49
PEG (5Y)0.92
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 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%