Raymond James Financial (RJF) AI Stock Analysis

• Market Cap: $34.11B
• Dividend Yield: 1.14%
• Average Volume (3M): 976.01K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.13
• Revenue Growth: 9.42%
• EPS Growth: 14.86%
• Country: US
• Employees: 19,000
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Capital Markets
• EPS (TTM): 2.18
• Shares Outstanding: 199,383,970
• 10 Day Avg. Volume: 801,773
• 30 Day Avg. Volume: 976,013
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 1.59
• Enterprise Value/Ebitda: 6.54
• 1Y Price Target: $174.78
• Price Target Upside: 5.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $183.00 ▲(10.57% Upside)

Raymond James Financial's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical analysis and valuation indicate a stable but cautious outlook. While cash flow challenges present risks, strategic investments and a robust recruiting pipeline support long-term growth potential.

Positive Factors

Business Expansion

Capital markets business expanding through opening of Paris investment banking office and mgmt plans to broaden sectors of investment banking expertise.

Earnings

The price target for Raymond James Financial has been increased by 8%.

Financial Performance

Earnings per share for the next two years are expected to increase due to better brokerage and interest income.

Negative Factors

Asset Growth

Net new assets came in below forecast at 2.6% annualized, indicating a softness in growth.

Cash Balances

Client cash sweep and enhanced savings program (ESP) balance were down 3%, aligning with strong markets and buying demand.

Revenue Expectations

The quarter is trending below consensus expectations based on analysis, with advisory estimate roughly 15% below consensus.

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 generates revenue through several key streams. The primary sources include wealth management fees, which are derived from asset management services and advisory fees charged to clients for investment advice and portfolio management. Additionally, the firm earns commissions from brokerage services, where they facilitate the buying and selling of securities. Investment banking activities contribute to revenue through underwriting fees and advisory fees from corporate clients during mergers and acquisitions. Other revenue comes from capital markets operations, where the firm engages in trading and investment activities. Significant partnerships with financial institutions and a strong advisor network also enhance their earnings potential by expanding client reach and service capabilities.

Raymond James Financial Financial Statement Overview

Summary

Raymond James Financial exhibits strong revenue growth and profitability, with a robust income statement and stable balance sheet. However, significant challenges in cash flow management, particularly the decline in free cash flow growth, present potential risks.

Income Statement

Raymond James Financial shows strong revenue growth with a TTM increase of 5.6% and a significant gross profit margin of 89.88%. The net profit margin is healthy at 13.70%, although slightly lower than the previous year. EBIT and EBITDA margins are robust, indicating efficient operations. Overall, the income statement reflects strong profitability and growth.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.31, indicating a balanced approach to leveraging. Return on equity is strong at 17.75%, showcasing effective use of equity capital. The equity ratio is not explicitly calculated, but the balance sheet suggests a solid financial position with a focus on equity financing.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth, down by 76.71% TTM. The operating cash flow to net income ratio is low, suggesting potential liquidity issues. However, the free cash flow to net income ratio remains high at 90.20%, indicating that the company is still generating cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.57B	14.74B	12.84B	11.16B	9.78B	7.89B
Gross Profit	13.99B	12.59B	11.34B	10.75B	9.66B	7.66B
EBITDA	3.40B	2.82B	2.44B	2.28B	1.93B	1.32B
Net Income	2.13B	2.07B	1.74B	1.51B	1.40B	818.00M
Balance Sheet
Total Assets	84.81B	82.99B	78.36B	80.95B	61.89B	47.48B
Cash, Cash Equivalents and Short-Term Investments	16.35B	19.25B	18.47B	15.99B	15.52B	13.97B
Total Debt	3.77B	4.03B	3.48B	3.79B	3.17B	3.53B
Total Liabilities	72.55B	71.33B	68.17B	71.52B	53.59B	40.31B
Stockholders Equity	12.26B	11.67B	10.21B	9.46B	8.24B	7.11B
Cash Flow
Free Cash Flow	460.00M	1.95B	-3.69B	-19.00M	6.57B	3.95B
Operating Cash Flow	510.00M	2.15B	-3.51B	72.00M	6.65B	4.07B
Investing Cash Flow	-205.15M	-968.00M	-274.00M	-7.15B	-5.14B	-4.99B
Financing Cash Flow	1.19B	438.00M	1.44B	5.88B	5.23B	4.57B

Raymond James Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 165.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 165.5 is below the 20-day moving average (MA) of 165.99, above the 50-day MA of 162.97, and above the 200-day MA of 153.70, indicating a neutral trend. The MACD of 1.53 indicates Positive momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 63.06 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
IBKR	78 Outperform	$28.62B	33.71	19.15%	0.83%	12.30%	20.76%
SF	77 Outperform	$11.82B	22.37	11.11%	1.60%	8.76%	10.32%
RJF	75 Outperform	$34.11B	16.35	18.16%	1.14%	9.42%	14.86%
SCHW	74 Outperform	$177.22B	25.91	15.59%	1.15%	4.64%	54.26%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
JEF	68 Neutral	$13.40B	24.19	5.75%	2.44%	1.00%	46.98%
LPLA	65 Neutral	$28.80B	24.37	29.46%	0.36%	29.23%	13.45%

Raymond James Financial Corporate Events

Raymond James Financial Declares Quarterly Dividends

On August 20, 2025, Raymond James Financial, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.50 per share on its common stock, payable on October 15, 2025, to shareholders of record as of October 1, 2025. Additionally, a quarterly dividend of $0.3984375 per depositary share of its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock was declared, payable on October 1, 2025, to shareholders of record on September 15, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders through regular dividend payments.

Raymond James Reports July 2025 Operating Data

On August 20, 2025, Raymond James Financial reported its operating data for July 2025, highlighting a 10% year-over-year increase in client assets under administration, driven by higher equity markets and net asset inflows. Despite a decline in domestic cash sweep and Enhanced Savings Program balances by 2% year-over-year, the company noted robust advisor recruiting activity and a strong investment banking pipeline, indicating positive operational momentum.

Raymond James Reports May 2025 Operating Data

On June 25, 2025, Raymond James Financial reported its operating data for May 2025, highlighting a 9% year-over-year and 3% month-over-month increase in client assets under administration, driven by higher equity markets and net asset inflows. Despite a decline in clients’ domestic cash sweep and Enhanced Savings Program balances by 4% year-over-year and 3% sequentially, the investment banking pipeline remains robust, although the timing of closings is uncertain.

Raymond James Financial Hosts Analyst & Investor Day

Raymond James Financial announced its annual Analyst & Investor Day scheduled for June 5, 2025, where executive management will present strategic overviews and financial reviews. The event highlights the company’s focus on sustainable growth, market expansion, and leveraging technology to enhance infrastructure, aiming to strengthen its position in the financial services industry.