RAYMOND JAMES FINANCIAL INC (RJF)
US7547301090 - Common Stock
We assign a fundamental rating of 4 out of 10 to RJF. RJF was compared to 221 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
RJF had positive earnings in the past year.
In the past year RJF had a positive cash flow from operations.
In the past 5 years RJF has always been profitable.
Of the past 5 years RJF 4 years had a positive operating cash flow.
1.2 Ratios
RJF has a Return On Assets (2.34%) which is in line with its industry peers.
RJF's Return On Equity of 16.88% is amongst the best of the industry. RJF outperforms 80.65% of its industry peers.
RJF has a worse Return On Invested Capital (2.72%) than 65.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RJF is significantly below the industry average of 17.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 16.88% | ||
| ROIC | 2.72% |
ROA(3y)2.11%
ROA(5y)2.14%
ROE(3y)16.61%
ROE(5y)15.4%
ROIC(3y)2.79%
ROIC(5y)2.85%
1.3 Margins
RJF has a Profit Margin of 13.09%. This is comparable to the rest of the industry: RJF outperforms 44.70% of its industry peers.
In the last couple of years the Profit Margin of RJF has grown nicely.
RJF has a worse Operating Margin (17.73%) than 62.67% 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 85.25% 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 3Y4.2%
OM growth 5Y1.18%
PM growth 3Y9.96%
PM growth 5Y3.04%
GM growth 3Y-2.98%
GM growth 5Y-1.72%
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.
RJF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.01, we must say that RJF is in the distress zone and has some risk of bankruptcy.
RJF has a worse Altman-Z score (-0.01) than 78.80% 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.
Looking at the Debt to FCF ratio, with a value of 31.31, RJF is in line with its industry, outperforming 44.70% of the companies in the same industry.
A Debt/Equity ratio of 5.24 is on the high side and indicates that RJF has dependencies on debt financing.
RJF has a worse Debt to Equity ratio (5.24) than 84.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.24 | ||
| Debt/FCF | 31.31 | ||
| Altman-Z | -0.01 |
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.
RJF has a Current ratio of 0.27. This is amonst the worse of the industry: RJF underperforms 84.79% 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.
Looking at the Quick ratio, with a value of 0.27, RJF is doing worse than 84.79% of the companies in the same industry.
| 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 11.88%, which is quite good.
The Earnings Per Share has been growing by 13.99% on average over the past years. This is quite good.
RJF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.68%.
The Revenue has been growing by 11.69% on average over the past years. This is quite good.
EPS 1Y (TTM)11.88%
EPS 3Y26.85%
EPS 5Y13.99%
EPS Q2Q%29.19%
Revenue 1Y (TTM)15.68%
Revenue growth 3Y16.73%
Revenue growth 5Y11.69%
Sales Q2Q%11.04%
3.2 Future
The Earnings Per Share is expected to grow by 6.20% on average over the next years.
RJF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y15.87%
EPS Next 2Y10.52%
EPS Next 3Y9.78%
EPS Next 5Y6.2%
Revenue Next Year9.56%
Revenue Next 2Y8.82%
Revenue Next 3Y8.57%
Revenue Next 5Y5.98%
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 13.53 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 30.97, RJF is valued rather cheaply.
RJF is valuated correctly with a Price/Forward Earnings ratio of 12.32.
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 (22.29), we can say RJF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.32 |
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 90.78% of the companies listed in the same industry.
RJF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RJF is cheaper than 64.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.73 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.85
PEG (5Y)0.97
EPS Next 2Y10.52%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
RJF has a Yearly Dividend Yield of 1.44%.
Compared to an average industry Dividend Yield of 8.99, RJF is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.22, RJF is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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 2Y10.52%
EPS Next 3Y9.78%
RAYMOND JAMES FINANCIAL INC
NYSE:RJF (10/8/2024, 8:20:58 PM)
After market: 124.9 0 (0%)124.9
-0.47 (-0.37%)
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 Cap25.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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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 | 13.53 | ||
| Fwd PE | 12.32 | ||
| 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)0.85
PEG (5Y)0.97
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)11.88%
EPS 3Y26.85%
EPS 5Y
EPS Q2Q%
EPS Next Y15.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.68%
Revenue growth 3Y16.73%
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