(RJF) Raymond James Financial - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 30.076m USD | Total Return: 2.1% in 12m
Industry Rotation: +5.0
Avg Turnover: 200M
EPS Trend: 77.9%
Qual. Beats: 0
Rev. Trend: 96.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Raymond James Financial (RJF) is a diversified financial services holding company operating across five primary segments: Private Client Group, Capital Markets, Asset Management, Banking, and Private Equity. Founded in 1962, the firm provides investment advisory, municipal and corporate underwriting, and retail banking services to a global client base in North America and Europe.
The company utilizes an independent brokerage model, which allows financial advisors to operate as independent contractors while utilizing the firms infrastructure and research. This structure typically results in lower fixed overhead costs compared to traditional wirehouse models. Within its Capital Markets segment, the firm maintains a specialized focus on middle-market mergers and acquisitions and institutional equity research.
The Investment Banking and Brokerage sector is highly sensitive to interest rate fluctuations and equity market volatility, which directly impact asset management fees and net interest margins. Reviewing the ValueRay platform can provide further clarity on how these macroeconomic factors influence the firms current valuation.
RJF also operates a fully integrated banking subsidiary that manages corporate and residential lending. This integration allows the firm to capture a larger share of a clients wallet by offering FDIC-insured deposit accounts and liquidity management products alongside traditional investment services.
- Net interest margin sensitivity to Federal Reserve monetary policy shifts
- Asset management fee growth tied to global equity market performance
- Private Client Group advisor retention and recruitment drive client assets
- Investment banking revenue fluctuations based on corporate M&A and underwriting activity
- Loan portfolio credit quality and provisions for potential banking segment losses
| Net Income: 2.15b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.22 > 1.0 |
| NWC/Revenue: -258.8% < 20% (prev -272.3%; Δ 13.48% < -1%) |
| CFO/TA 0.03 > 3% & CFO 2.58b > Net Income 2.15b |
| Net Debt (-14.09b) to EBITDA (2.86b): -4.93 < 3 |
| Current Ratio: 0.37 > 1.5 & < 3 |
| Outstanding Shares: last quarter (199.2m) vs 12m ago -4.55% < -2% |
| Gross Margin: 89.16% > 18% (prev 0.87%; Δ 8.83k% > 0.5%) |
| Asset Turnover: 18.68% > 50% (prev 18.57%; Δ 0.11% > 0%) |
| Interest Coverage Ratio: 0.74 > 6 (EBITDA TTM 2.86b / Interest Expense TTM 1.75b) |
| A: -0.46 (Total Current Assets 24.57b - Total Current Liabilities 66.90b) / Total Assets 91.94b |
| B: 0.16 (Retained Earnings 14.49b / Total Assets 91.94b) |
| C: 0.01 (EBIT TTM 1.29b / Avg Total Assets 87.54b) |
| D: 0.18 (Book Value of Equity 14.12b / Total Liabilities 79.33b) |
| Altman-Z'' Score: -2.22 = D |
| DSRI: 1.03 (Receivables 5.11b/4.66b, Revenue 16.35b/15.44b) |
| GMI: 0.97 (GM 89.16% / 86.77%) |
| AQI: 0.99 (AQ_t 0.72 / AQ_t-1 0.72) |
| SGI: 1.06 (Revenue 16.35b / 15.44b) |
| TATA: -0.00 (NI 2.15b - CFO 2.58b) / TA 91.94b) |
| Beneish M-Score: -2.99 (Cap -4..+1) = A |
Over the past week, the price has changed by -0.14%, over one month by -1.07%, over three months by -2.12% and over the past year by +2.10%.
- StrongBuy: 2
- Buy: 2
- Hold: 10
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 174.8 | 13.4% |
P/E Forward = 13.1926
P/S = 2.0428
P/B = 2.3933
P/EG = 0.9771
Revenue TTM = 16.35b USD
EBIT TTM = 1.29b USD
EBITDA TTM = 2.86b USD
Long Term Debt = 4.22b USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.84b USD (from shortTermDebt, last quarter)
Debt = 5.36b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -14.09b USD (recalculated: Debt 5.36b - CCE 19.45b)
Enterprise Value = 15.99b USD (30.08b + Debt 5.36b - CCE 19.45b)
Interest Coverage Ratio = 0.74 (Ebit TTM 1.29b / Interest Expense TTM 1.75b)
EV/FCF = 6.71x (Enterprise Value 15.99b / FCF TTM 2.38b)
FCF Yield = 14.91% (FCF TTM 2.38b / Enterprise Value 15.99b)
FCF Margin = 14.58% (FCF TTM 2.38b / Revenue TTM 16.35b)
Net Margin = 13.13% (Net Income TTM 2.15b / Revenue TTM 16.35b)
Gross Margin = 89.16% ((Revenue TTM 16.35b - Cost of Revenue TTM 1.77b) / Revenue TTM)
Gross Margin QoQ = 90.54% (prev 89.44%)
Tobins Q-Ratio = 0.17 (Enterprise Value 15.99b / Total Assets 91.94b)
Interest Expense / Debt = 7.51% (Interest Expense 403.0m / Debt 5.36b)
Taxrate = 25.99% (191.0m / 735.0m)
NOPAT = 957.7m (EBIT 1.29b * (1 - 25.99%))
Current Ratio = 0.37 (Total Current Assets 24.57b / Total Current Liabilities 66.90b)
Debt / Equity = 0.43 (Debt 5.36b / totalStockholderEquity, last quarter 12.57b)
Debt / EBITDA = -4.93 (Net Debt -14.09b / EBITDA 2.86b)
Debt / FCF = -5.91 (Net Debt -14.09b / FCF TTM 2.38b)
Total Stockholder Equity = 12.47b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.45% (Net Income 2.15b / Total Assets 91.94b)
RoE = 17.21% (Net Income TTM 2.15b / Total Stockholder Equity 12.47b)
RoCE = 7.75% (EBIT 1.29b / Capital Employed (Equity 12.47b + L.T.Debt 4.22b))
RoIC = 5.93% (NOPAT 957.7m / Invested Capital 16.14b)
WACC = 8.92% (E(30.08b)/V(35.44b) * Re(9.52%) + D(5.36b)/V(35.44b) * Rd(7.51%) * (1-Tc(0.26)))
Discount Rate = 9.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.39 | Cagr: -3.09%
[DCF] Terminal Value 66.58% ; FCFF base≈2.22b ; Y1≈1.46b ; Y5≈666.7m
[DCF] Fair Price = 130.6 (EV 11.36b - Net Debt -14.09b = Equity 25.45b / Shares 194.9m; r=8.92% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 77.90 | EPS CAGR: 16.23% | SUE: -0.33 | # QB: 0
Revenue Correlation: 96.26 | Revenue CAGR: 12.50% | SUE: 0.57 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.92 | Chg30d=-2.97% | Revisions=-50% | Analysts=10
EPS current Year (2026-09-30): EPS=11.87 | Chg30d=-1.87% | Revisions=-50% | GrowthEPS=+11.3% | GrowthRev=+10.7%
EPS next Year (2027-09-30): EPS=13.38 | Chg30d=-2.55% | Revisions=-50% | GrowthEPS=+12.8% | GrowthRev=+7.5%
[Analyst] Revisions Ratio: -50%