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Raymond James Financial (RJF)
NYSE:RJF

Raymond James Financial (RJF) AI Stock Analysis

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Raymond James Financial

(NYSE:RJF)

Rating:77Outperform
Price Target:
$167.00
▲(13.64%Upside)
Raymond James Financial scores 77, reflecting its robust financial performance and positive corporate events. The company's consistent revenue growth and strong balance sheet are significant strengths. While technical indicators show mixed signals, the stock is not overbought, suggesting potential for upward movement. The valuation is reasonable, though the dividend yield is modest. Overall, the company is well-positioned for sustainable growth.
Positive Factors
Buybacks
RJF committed to more buybacks going forward, setting a floor at $250 million with a potential run rate of $400-$500 million per quarter.
Earnings
The earnings per share for the next two years are expected to increase due to better brokerage and interest income.
Price Target
The price target for Raymond James Financial has been increased by 8%.
Negative Factors
Cash Balances
Cash balances at RJF were lower than expected compared to peers.
Deal Closures
RJF highlighted a healthy pipeline in I-Banking, although deal closings have been slower due to macroeconomic volatility.
Revenue Growth
Net new assets came in below forecast at 2.6% annualized, indicating a softness in growth.

Raymond James Financial (RJF) vs. SPDR S&P 500 ETF (SPY)

Raymond James Financial Business Overview & Revenue Model

Company DescriptionRaymond 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 MoneyRaymond James Financial makes money through several key revenue streams. The primary source of revenue is its Private Client Group, which generates income from advisory fees, commissions, and asset management fees by providing wealth management services to individual clients. The Capital Markets segment contributes to revenue through underwriting, trading, and advisory fees from institutional clients and corporate entities. Additionally, the Asset Management segment earns fees from managing client assets across various investment strategies. Other revenue streams include interest income from lending and deposits, as well as fees from financial planning and other services. Strategic partnerships and a strong presence in the financial sector further bolster its earnings, enhancing its ability to attract and retain clients.

Raymond James Financial Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 8.59%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
Raymond James Financial reported a strong fiscal first quarter with record net revenues and significant growth across various segments, despite challenges such as the departure of a large branch and a decline in net interest margin. The firm's robust recruitment pipeline and success in investment banking and M&A signal strong future growth potential.
Q1-2025 Updates
Positive Updates
Record Net Revenue
Raymond James Financial reported record net revenues of $3.54 billion for the first fiscal quarter, representing a 17% increase over the prior year and a 2% rise sequentially.
Strong Asset Growth
Total client assets under administration increased 14% year-over-year to $1.56 trillion. RCS division assets were up 28% year-over-year.
Investment Banking and M&A Success
Capital Markets net revenues grew 42% year-over-year due to higher M&A revenues. This quarter marked the second best for M&A revenues and the third best for investment banking revenues.
Asset Management Segment Record
The Asset Management segment generated record pretax income of $125 million on record net revenues of $294 million.
Strong Recruitment Pipeline
Raymond James recruited financial advisors with approximately $318 million of trailing 12-month production and $51 billion of client assets at previous firms over the past 12 months.
Negative Updates
Departure Impact on Assets
The departure of one large branch in the independent contractor division resulted in a $5 billion impact on assets under administration.
Net Interest Margin Decline
The Bank segment's net interest margin of 2.6% declined two basis points compared to the preceding quarter.
Fixed Income Market Challenges
The fixed income business remains challenging, impacting the overall growth in the Capital Markets segment.
Company Guidance
During Raymond James Financial's Fiscal 2025 First Quarter Earnings Call, the company reported record net revenues of $3.54 billion, with net income available to common shareholders at $599 million, slightly below the previous quarter's record. The adjusted net income was $614 million, or $2.93 per diluted share, after excluding acquisition-related expenses. The company achieved an annualized return on common equity of 20.4% and an annualized adjusted return on tangible common equity of 24.6%. Total client assets under administration increased by 14% year-over-year to $1.56 trillion, with Private Client Group assets reaching a record $877 billion. Raymond James' Bank segment reported net revenues of $425 million, with a pretax income of $118 million, and bank loans grew 3% over the preceding quarter to a record $47.2 billion. The company expects second-quarter asset management and related administrative fees to decrease by approximately 2% due to two fewer billing days.

Raymond James Financial Financial Statement Overview

Summary
Raymond James Financial exhibits a strong financial performance with consistent revenue and profit growth, efficient cost management, and a solid balance sheet. The company is leveraging its equity wisely to generate returns, and its improving cash flow position indicates effective cash management. While the financial statements show strength, attention to maintaining liquidity and managing capital expenditures is advisable to sustain growth momentum.
Income Statement
85
Very Positive
Raymond James Financial has demonstrated strong revenue growth, with a steady increase from $9.63 billion in 2021 to $14.95 billion in TTM 2025. The company maintains a healthy gross profit margin of approximately 89.6% in TTM, indicating efficient cost management. Net profit margin improved to 14.6% in TTM, reflecting enhanced profitability. The EBIT and EBITDA margins are also robust at 18.9% and 20.4% respectively, showcasing operational efficiency. Overall, the income statement reflects solid growth and profitability.
Balance Sheet
80
Positive
The balance sheet of Raymond James Financial is characterized by a strong equity base, with stockholders' equity rising to $12.21 billion in TTM. The debt-to-equity ratio is manageable at 0.30, indicating conservative leverage. The return on equity stands at a commendable 17.9% in TTM, demonstrating effective utilization of shareholders' funds. The equity ratio of 14.7% suggests a stable financial position, though there's room for improvement in increasing equity relative to total assets. Overall, the balance sheet is solid with prudent financial management.
Cash Flow
75
Positive
Raymond James Financial shows a positive trend in free cash flow, increasing to $1.98 billion in TTM from negative values in prior years, reflecting improved cash generation. The operating cash flow to net income ratio is healthy at 0.99, indicating strong cash conversion from net income. The free cash flow to net income ratio is slightly lower at 0.90, suggesting some capital expenditure requirements. Overall, the cash flow statement reflects improving liquidity and cash management, though volatility in past years warrants attention.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
14.95B14.74B11.47B10.83B9.63B7.89B
Gross Profit
13.40B12.59B11.34B10.23B9.46B7.66B
EBIT
2.83B2.64B2.36B2.35B1.97B1.10B
EBITDA
3.05B2.82B2.57B2.28B1.93B1.32B
Net Income Common Stockholders
2.19B2.07B1.74B1.51B1.40B818.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.72B19.26B18.60B16.06B15.52B13.04B
Total Assets
38.18B82.99B78.36B80.95B61.89B47.48B
Total Debt
2.45B4.03B3.48B3.79B3.17B3.28B
Net Debt
-1.39B-6.97B-5.84B-2.38B-4.03B-2.11B
Total Liabilities
31.74B71.33B68.17B71.52B53.59B40.31B
Stockholders Equity
6.37B11.67B10.21B9.46B8.24B7.11B
Cash FlowFree Cash Flow
1.98B1.95B-3.69B-19.00M6.57B3.95B
Operating Cash Flow
2.17B2.15B-3.51B72.00M6.65B4.07B
Investing Cash Flow
-2.46B-968.00M-274.00M-7.15B-5.14B-4.99B
Financing Cash Flow
-291.00M438.00M1.44B5.88B5.23B4.57B

Raymond James Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price146.96
Price Trends
50DMA
141.20
Positive
100DMA
148.11
Negative
200DMA
144.88
Positive
Market Momentum
MACD
0.70
Positive
RSI
52.86
Neutral
STOCH
52.87
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 146.96 is below the 20-day moving average (MA) of 148.67, above the 50-day MA of 141.20, and above the 200-day MA of 144.88, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 52.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RJF.

Raymond James Financial Risk Analysis

Raymond James Financial disclosed 31 risk factors in its most recent earnings report. Raymond James Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Raymond James Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$31.11B26.9240.36%0.31%26.32%8.63%
HLHLI
79
Outperform
$12.36B30.4219.93%1.29%24.88%39.55%
RJRJF
77
Outperform
$29.61B14.1418.84%1.29%11.78%25.68%
SFSF
69
Neutral
$9.92B18.4011.48%1.78%12.85%20.21%
68
Neutral
$4.17B14.3516.69%67.71%19.42%
JEJEF
67
Neutral
$10.81B18.166.38%2.86%16.62%139.24%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RJF
Raymond James Financial
146.96
31.34
27.11%
SNEX
StoneX Group
84.65
37.45
79.34%
JEF
Jefferies
53.42
11.21
26.56%
LPLA
LPL Financial
380.39
102.42
36.85%
SF
Stifel Financial
96.62
19.40
25.12%
HLI
Houlihan Lokey
175.94
50.34
40.08%

Raymond James Financial Corporate Events

Business Operations and StrategyFinancial Disclosures
Raymond James Financial Hosts Analyst & Investor Day
Positive
Jun 5, 2025

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.

The most recent analyst rating on (RJF) stock is a Hold with a $158.00 price target. To see the full list of analyst forecasts on Raymond James Financial stock, see the RJF Stock Forecast page.

Executive/Board ChangesDividends
Raymond James Financial Appoints New Board Member
Positive
May 23, 2025

On May 21, 2025, Raymond James Financial announced the appointment of Mark W. Begor, CEO of Equifax, to its Board of Directors, expanding the board from 12 to 13 members. Begor, who will serve on the Audit and Risk Committees, brings extensive experience in financial services and strategic growth, aligning with Raymond James’ focus on developing an industry-leading technology platform. Additionally, the company declared a quarterly dividend of $0.50 per common share and $0.3984375 per depositary share of its Series B Preferred Stock, payable in July 2025, reflecting its commitment to delivering shareholder value.

The most recent analyst rating on (RJF) stock is a Hold with a $161.00 price target. To see the full list of analyst forecasts on Raymond James Financial stock, see the RJF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Raymond James Financial Reports April 2025 Operating Data
Neutral
May 21, 2025

On May 21, 2025, Raymond James Financial reported its operating data for April 2025, highlighting a 9% increase in client assets under administration compared to the previous year, while domestic cash sweep and Enhanced Savings Program balances saw a decline due to quarterly fee billings and seasonal tax payments. Despite macroeconomic uncertainties affecting the timing of investment banking closings, the company’s pipeline remains strong, indicating resilience in its operations.

The most recent analyst rating on (RJF) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Raymond James Financial stock, see the RJF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Raymond James Reports February 2025 Operating Data
Neutral
Mar 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.