Raymond James Financial (RJF) AI Stock Analysis

• Market Cap: $32.65B
• Dividend Yield: 1.26%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.08
• Revenue Growth: 6.45%
• EPS Growth: 5.85%
• Country: US
• Employees: 19,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 3.11
• Shares Outstanding: 196,673,930
• 10 Day Avg. Volume: 1,621,189
• 30 Day Avg. Volume: 1,282,416
• PEG Ratio: 2.75
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 2.19
• P/FCF Ratio: 15.52
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: 5.45
• 1Y Price Target: $184.00
• Price Target Upside: 11.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $181.00 ▲(9.19% Upside)

Raymond James Financial's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's strategic investments and record-breaking growth highlight its robust market position. Technical analysis and valuation suggest a stable outlook, while challenges like cash flow conversion and expense management are areas for improvement.

Positive Factors

Record Client Asset Growth

The significant growth in client assets under administration indicates strong market demand and effective client acquisition strategies, enhancing long-term revenue potential.

Technology and AI Investments

Substantial investments in technology and AI position the company for future innovation, operational efficiency, and competitive advantage in financial services.

Strong Financial Performance

Consistent revenue growth and record financial performance reflect robust business operations and market positioning, supporting long-term financial stability.

Negative Factors

Decline in Pretax Income

A decline in pretax income suggests potential challenges in maintaining profitability, which could impact future earnings and financial health.

Interest Rate Impact

Interest rate reductions have negatively impacted income, potentially affecting future profitability and financial performance in a low-rate environment.

Expense Growth

Rising expenses, driven by growth initiatives, may pressure margins and require careful management to sustain profitability and operational efficiency.

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 through multiple streams. Primarily, the company earns money from advisory fees, commissions on trades, and interest income from loans and investments. The Private Client Group segment contributes significantly through wealth management services, where financial advisors charge fees based on assets under management and commissions from investment products. The Capital Markets segment earns revenue from investment banking activities, including underwriting and advisory fees from public offerings and mergers and acquisitions. Additionally, the Asset Management segment provides investment solutions and earns fees from managed funds. The company also benefits from its banking operations through interest income from loans and mortgages. Strategic partnerships and relationships with various financial institutions enhance its service offerings and revenue potential.

Raymond James Financial Financial Statement Overview

Summary

Raymond James Financial exhibits strong financial health with consistent revenue growth, high profitability, and effective equity utilization. The company maintains a stable balance sheet, though attention to cash flow conversion efficiency could enhance financial resilience.

Income Statement

Raymond James Financial has demonstrated consistent revenue growth with a 2.58% increase in the latest year. The company maintains strong profitability with a high gross profit margin of 88.15% and a solid net profit margin of 13.42%. The EBIT and EBITDA margins have improved significantly, indicating efficient operational management.

Balance Sheet

The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.35. The return on equity is robust, highlighting effective use of equity to generate profits. However, the equity ratio suggests a moderate reliance on debt financing.

Cash Flow

Raymond James Financial shows positive free cash flow growth of 14.94%, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.91B	15.91B	14.74B	12.84B	11.16B	9.78B
Gross Profit	14.03B	14.03B	12.59B	11.34B	10.75B	9.66B
EBITDA	4.76B	4.76B	2.82B	2.44B	2.17B	1.93B
Net Income	2.13B	2.13B	2.07B	1.74B	1.51B	1.40B
Balance Sheet
Total Assets	88.23B	88.23B	82.99B	78.36B	80.95B	61.89B
Cash, Cash Equivalents and Short-Term Investments	18.28B	18.28B	19.25B	18.47B	15.99B	15.52B
Total Debt	4.41B	4.41B	4.03B	3.48B	3.79B	3.17B
Total Liabilities	75.73B	75.73B	71.33B	68.17B	71.52B	53.59B
Stockholders Equity	12.50B	12.50B	11.67B	10.21B	9.46B	8.24B
Cash Flow
Free Cash Flow	2.25B	2.25B	1.95B	-3.69B	-19.00M	6.57B
Operating Cash Flow	2.43B	2.43B	2.15B	-3.51B	72.00M	6.65B
Investing Cash Flow	-4.32B	-4.32B	-968.00M	-274.00M	-7.15B	-5.14B
Financing Cash Flow	2.36B	2.36B	438.00M	1.44B	5.88B	5.23B

Raymond James Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 165.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RJF, the sentiment is Positive. The current price of 165.77 is above the 20-day moving average (MA) of 161.37, above the 50-day MA of 160.68, and above the 200-day MA of 155.15, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 63.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RJF.

Raymond James Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RJF	76 Outperform	$32.65B	16.10	17.64%	1.26%	6.45%	5.85%
IBKR	75 Outperform	$29.30B	31.78	19.82%	0.46%	11.88%	28.96%
SF	75 Outperform	$13.11B	22.67	11.73%	1.43%	7.54%	2.73%
SCHW	74 Outperform	$180.20B	23.73	17.05%	1.07%	5.90%	66.60%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LPLA	66 Neutral	$29.67B	34.45	21.32%	0.32%	35.19%	-18.62%
JEF	63 Neutral	$13.06B	21.86	6.29%	2.52%	-5.41%	25.28%

Raymond James Financial Corporate Events

Raymond James Reports Record Client Asset Growth

On December 17, 2025, Raymond James Financial reported operating data for November 2025, noting a 10% year-over-year increase in client assets under administration, reaching a record $1.77 trillion. The growth was primarily fueled by net asset inflows due to strong advisor recruiting and favorable equity market conditions. Despite strong investment banking pipelines, revenues in the segment were down 20% for the first two months of the quarter compared to the previous quarter, reflecting timing-related factors for closings.

Raymond James Financial Increases Quarterly Dividend by 8%

On December 3, 2025, Raymond James Financial announced an 8% increase in its quarterly dividend for common stock, raising it to $0.54 per share, payable on January 16, 2026. The company also declared a quarterly dividend for its Series B Preferred Stock and authorized a $2 billion share repurchase program, replacing the previous $1.5 billion authorization. This move reflects the company’s strategy to enhance shareholder value and optimize its capital structure.

Raymond James to Redeem Series B Preferred Stock

On December 2, 2025, Raymond James Financial announced its decision to redeem all 80,500 outstanding shares of its Series B Preferred Stock and the related depositary shares on January 2, 2026. This move will result in no remaining outstanding shares of the Series B Preferred Stock or Series B Depositary Shares, impacting the company’s capital structure and potentially influencing its financial strategy.

Raymond James Reports Record Client Assets in October

On November 19, 2025, Raymond James Financial reported its operating data for October 2025, highlighting a record $1.75 trillion in client assets under administration, a 13% year-over-year increase driven by higher equity markets and net asset inflows. Despite a 2% sequential decline in clients’ domestic cash sweep and Enhanced Savings Program balances due to quarterly fee billings, the company maintains strong pipelines for advisor recruiting and investment banking, indicating robust future prospects.

Raymond James Reports Record Client Assets in August

On September 24, 2025, Raymond James Financial reported its operating data for August 2025, highlighting a record $1.69 trillion in client assets under administration, a 10% increase year-over-year, driven by higher equity markets and net asset inflows. Despite a decline in domestic cash sweep and Enhanced Savings Program balances, the firm noted strong advisor recruiting and a robust investment banking pipeline, indicating positive momentum in its operations.

Raymond James Financial Amends Credit Agreement for Growth

On September 23, 2025, Raymond James Financial, Inc. amended its existing credit agreement, extending the maturity date to September 23, 2030, increasing the facility amount to $1 billion, and decreasing the interest rate applicable to borrowings. This strategic financial adjustment is expected to enhance the company’s financial flexibility and potentially improve its market positioning.