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 233 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 correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 2.62%, RJF is in line with its industry, outperforming 49.79% 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 84.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.01%, RJF is doing worse than 63.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RJF is significantly below the industry average of 7.86%.
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
The Profit Margin of RJF (13.93%) is comparable to the rest of the 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 62.66% 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 has a Gross Margin of 84.86%. This is amongst the best in the industry. RJF outperforms 88.84% 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
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
RJF has an Altman-Z score of 0.08. 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 (0.08) than 76.39% 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 45.49% 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.
With a Debt to Equity ratio value of 4.92, RJF is not doing good in the industry: 84.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.92 | ||
| Debt/FCF | 30.42 | ||
| Altman-Z | 0.08 |
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.
With a Current ratio value of 0.27, RJF is not doing good in the industry: 85.84% of the companies in the same industry are doing better.
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.
RJF has a Quick ratio of 0.27. This is amonst the worse of the industry: RJF underperforms 85.84% 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.
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 12.02% in the past year. This is quite good.
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)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.
The Revenue is expected to grow by 6.70% on average over the next years.
EPS Next Y4.4%
EPS Next 2Y6.69%
EPS Next 3Y8.07%
EPS Next 5Y7.23%
Revenue Next Year9.02%
Revenue Next 2Y8.09%
Revenue Next 3Y7.29%
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
RJF is valuated correctly with a Price/Earnings ratio of 15.03.
RJF's Price/Earnings ratio is in line with the industry average.
RJF is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.04, the valuation of RJF can be described as correct.
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 (36.44), we can say RJF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RJF is valued cheaper than 90.99% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RJF indicates a somewhat cheap valuation: RJF is cheaper than 65.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.41 | ||
| EV/EBITDA | 8.32 |
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)3.41
PEG (5Y)0.98
EPS Next 2Y6.69%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
RJF has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
RJF's Dividend Yield is slightly below the industry average, which is at 7.76.
Compared to an average S&P500 Dividend Yield of 2.35, RJF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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.
RJF has decreased its dividend 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%
160.66
+1.18 (+0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners78.43%
Inst Owner Change-0.02%
Ins Owners0.51%
Ins Owner Change0.08%
Market Cap32.41B
Analysts70.53
Price Target176 (9.55%)
Short Float %4.77%
Short Ratio8.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)0.68%
PT rev (3m)-11.49%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)0.66%
EPS NY rev (3m)-5.99%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-3.51%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 14.04 | ||
| P/S | 2.07 | ||
| P/FCF | 16.41 | ||
| P/OCF | 14.95 | ||
| P/B | 2.65 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)10.69
EY6.65%
EPS(NY)11.44
Fwd EY7.12%
FCF(TTM)9.79
FCFY6.09%
OCF(TTM)10.75
OCFY6.69%
SpS77.55
BVpS60.53
TBVpS51.34
PEG (NY)3.41
PEG (5Y)0.98
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 | 0.08 |
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 Y4.4%
EPS Next 2Y6.69%
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 Year9.02%
Revenue Next 2Y8.09%
Revenue Next 3Y7.29%
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%