Raymond James Financial (RJF) AI Stock Analysis

• Market Cap: $25.60B
• Dividend Yield: 1.48%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.16
• Revenue Growth: 13.79%
• EPS Growth: 28.57%
• Country: US
• Employees: 19,000
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Capital Markets
• EPS (TTM): 10.24
• Shares Outstanding: 204,910,030
• 10 Day Avg. Volume: 1,954,521
• 30 Day Avg. Volume: 1,694,323
• PEG Ratio: 0.43
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.20
• Price to Cash Flow (P/CF): 8.70
• P/FCF Ratio: 7.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $158.55
• Price Target Upside: 16.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Raymond James Financial's strong financial performance and positive earnings call sentiment drive the stock's score. The absence of debt and robust revenue growth are key strengths, while mixed cash flow performance and technical downtrends are notable concerns. The company's reasonable valuation further supports a solid outlook.

Positive Factors

Dividend

RJF's board declared a quarterly cash dividend to $0.50 per share, an 11% increase over the previous dividend.

Earnings

Raymond James Financial reported earnings per share ahead of estimates, showcasing a strong financial performance.

Investment Banking

Investment Banking revenue significantly outperformed expectations, highlighting the potential for growth in this segment.

Negative Factors

Cash Balances

Cash balances at RJF were lower than expected compared to peers.

Equity Markets

Total client assets experienced a slight decrease, mainly due to weaker equity markets.

Non-compensation Expenses

Non-compensation expenses were higher than estimated, reflecting increased business expenses due to strong organic growth.

Raymond James Financial Business Overview & Revenue Model

Company Description

Raymond James Financial, Inc., a diversified financial services company, provides private client group, capital markets, asset management, banking, and other services to individuals, corporations, and municipalities in the United States, Canada, and Europe. The Private Client Group segment offers investment services, portfolio management services, insurance and annuity products, and mutual funds; support to third-party product partners, including sales and marketing support, as well as distribution and accounting, and administrative services; margin loans; and securities borrowing and lending services. The Capital Markets segment provides investment banking services, including equity underwriting, debt underwriting, and merger and acquisition advisory services; and fixed income and equity brokerage services. The Asset Management segment offers asset management, portfolio management, and related administrative services to retail and institutional clients; and administrative support services, such as record-keeping. The Raymond James Bank segment provides insured deposit accounts; commercial and industrial, commercial real estate (CRE) and CRE construction, tax-exempt, residential, securities-based, and other loans; and loan syndication services. The Other segment engages in the private equity investments, including various direct and third-party private equity investments; and legacy private equity funds. The company was founded in 1962 and is headquartered in St. Petersburg, Florida.

How the Company Makes Money

Raymond James Financial generates revenue primarily through its wealth management, investment banking, and asset management services. In wealth management, the company earns money by charging fees for financial advisory services, including a percentage of assets under management (AUM), transaction fees, and commissions on investment products. The investment banking division contributes to revenue through underwriting, advisory services for mergers and acquisitions, and capital raising activities. Additionally, the asset management segment generates income from management fees charged on mutual funds and other investment products. The company's earnings are further bolstered by the interest income earned from its securities-based lending and other lending activities.

Raymond James Financial Financial Statement Overview

Summary

Raymond James Financial exhibits strong revenue growth and profitability, with an impressive gross profit margin and improved net profit margin. The balance sheet is robust with no debt, but cash flow performance is mixed, marked by a negative free cash flow growth rate.

Income Statement

Raymond James Financial shows robust performance with consistent revenue growth. The revenue growth rate from 2023 to 2024 is strong at approximately 30.2%. Gross Profit Margin is high at 91.9% for the TTM, indicating efficient cost management. Net Profit Margin improved to 14.1% in the TTM, highlighting enhanced profitability. EBIT and EBITDA margins are also solid, reflecting strong operational performance.

Balance Sheet

The company displays a strong equity position with an Equity Ratio of 18.4% as of 2023. The absence of debt in the TTM shows a conservative capital structure. However, the low Return on Equity (ROE) of 18.6% indicates potential areas for improving shareholder returns.

Cash Flow

Cash flow performance is mixed. The Free Cash Flow growth rate is negative, showing a decrease from the previous year. The Operating Cash Flow to Net Income Ratio of 0.63 in TTM suggests moderate cash conversion efficiency. However, the Free Cash Flow to Net Income Ratio is strong, reflecting reasonable cash flow generation relative to net income.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
15.40B	14.92B	11.47B	10.85B	9.63B	7.89B
	Gross Profit
14.15B	14.74B	11.20B	10.60B	9.40B	7.66B
	EBIT
4.88B	4.75B	7.21B	2.35B	1.79B	1.05B
	EBITDA
2.71B	4.75B	0.00	2.28B	2.14B	1.17B
	Net Income Common Stockholders
2.17B	2.07B	1.74B	1.51B	1.40B	818.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.01B	19.26B	9.31B	16.06B	15.52B	13.04B
	Total Assets
15.28B	82.99B	78.36B	80.95B	61.89B	47.48B
	Total Debt
490.52M	3.09B	3.14B	3.33B	2.90B	3.28B
	Net Debt
-438.47M	-7.91B	-6.17B	-2.85B	-4.31B	-2.11B
	Total Liabilities
12.88B	71.33B	68.17B	71.52B	53.59B	40.31B
	Stockholders Equity
2.16B	11.67B	10.21B	9.46B	8.24B	7.11B
Cash Flow		Free Cash Flow
2.00B	1.95B	-3.69B	-19.00M	6.55B	3.93B
	Operating Cash Flow
2.19B	2.15B	-3.51B	72.00M	6.63B	4.05B
	Investing Cash Flow
-1.48B	-968.00M	-274.00M	-7.15B	-5.14B	-4.99B
	Financing Cash Flow
-916.00M	438.00M	1.44B	5.88B	5.25B	4.59B

Raymond James Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 136.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RJF, the sentiment is Negative. The current price of 136.28 is below the 20-day moving average (MA) of 138.44, below the 50-day MA of 148.71, and below the 200-day MA of 139.00, indicating a bearish trend. The MACD of -3.30 indicates Negative momentum. The RSI at 36.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RJF.

Raymond James Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLI	77 Outperform	$10.11B	27.53	18.64%	1.58%	22.09%	28.37%
LPLA	75 Outperform	$23.02B	20.51	42.26%	0.42%	23.20%	2.38%
SNEX	73 Outperform	$3.38B	12.53	16.40%	―	60.57%	17.39%
SF	71 Outperform	$8.15B	12.55	13.32%	2.25%	15.33%	46.64%
RJF	69 Neutral	$25.60B	12.20	19.07%	1.48%	13.79%	28.57%
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%
JEF	61 Neutral	$8.69B	14.62	6.54%	3.32%	11.76%	139.24%

Raymond James Financial Corporate Events

Raymond James Reports February 2025 Operating Data

On March 19, 2025, Raymond James Financial reported its operating data for February 2025, highlighting a 12% increase in client assets under administration compared to the previous year, despite a 1% decline from the preceding month due to lower equity markets. The company’s investment banking pipeline remains robust, although macroeconomic uncertainties have led to fewer closings in the first two months of the quarter compared to the previous quarter.

Raymond James Financial Announces Leadership Transition

On February 20, 2025, Raymond James Financial implemented its leadership succession plan during its Annual Shareholders Meeting, where Paul C. Reilly transitioned from CEO to Executive Chair of the Board, and Paul M. Shoukry took over as CEO. The shareholders elected twelve board members, approved executive compensation, and ratified KPMG LLP as the independent auditor for the fiscal year ending September 30, 2025. Additionally, on February 21, 2025, the company announced quarterly dividends on its common and preferred stock, payable in April 2025.

Raymond James Reports 15% Growth in Client Assets

In January 2025, Raymond James Financial, Inc. reported a 15% year-over-year growth in client assets under administration, reaching $1.59 trillion, driven by higher equity markets and modest net inflows. However, domestic cash sweep and Enhanced Savings Program balances remained flat year-over-year but decreased by 4% from the previous month due to quarterly fee billings and client reinvestment activities. The firm also noted continued growth in bank loans, which increased by 8% year-over-year, and maintained a healthy investment banking pipeline, although the timing of closings remains uncertain.