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Raymond James Financial (RJF)
NYSE:RJF
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Raymond James Financial (RJF) AI Stock Analysis

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RJF

Raymond James Financial

(NYSE:RJF)

Rating:78Outperform
Price Target:
$190.00
▲(12.74%Upside)
Raymond James Financial shows strong financial performance with robust revenue and profit growth, alongside effective equity utilization. Technical indicators suggest a bullish trend, though overbought signals imply caution. Valuation is reasonable, and the earnings call reflects mixed sentiment with notable achievements and challenges.
Positive Factors
Assets Under Administration
Client assets under administration increased by 3%, driven by higher equity market levels and net asset inflows.
Earnings Per Share
Earnings per share are expected to rise in the coming years due to improved brokerage and interest income.
Investment Banking
The investment banking pipeline is strong, suggesting potential growth opportunities despite unpredictable closing timelines.
Negative Factors
Client Cash Balances
Client cash sweep and enhanced savings program balances decreased by 3%, falling short of consensus expectations.
Net New Assets
Net new assets fell below forecast at a 2.6% annualized rate, indicating weaker growth momentum.
Quarterly Expectations
The quarter is trending below consensus expectations, with advisory estimates approximately 15% lower than anticipated.

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:Jul 23, 2025
(Q3-2025)
|
% Change Since: 4.76%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlights Raymond James' continued profitability, record revenues, and strong recruiting pipeline. However, challenges persist, including a decline in pretax income, legal settlement costs, and a loss in the Capital Markets segment. While the firm shows positive momentum in client assets and satisfaction rankings, financial hurdles and market uncertainties present ongoing challenges.
Q3-2025 Updates
Positive Updates
150th Consecutive Quarter of Profitability
Raymond James marked its 150th consecutive quarter of profitability, reflecting the strength of its diverse and complementary businesses.
Record Net Revenues and Pretax Income
For the first 9 months of fiscal 2025, Raymond James generated record net revenues of $10.3 billion and record pretax income of $1.98 billion, up 10% and 5% over the first 9 months of fiscal 2024.
Record Assets Under Administration
The Private Client Group ended the quarter with a record $1.57 trillion of client assets under administration, representing year-over-year growth of 11%.
Strong Recruiting Pipeline
Over the past 12 months, Raymond James recruited financial advisers with $52 billion of client assets, and the firm is optimistic about its momentum and growth over the coming quarters.
J.D. Power Rankings
Raymond James topped the J.D. Power rankings in its annual U.S. Investor Satisfaction Study as the #1 wealth management firm for advised investor satisfaction.
Negative Updates
Pretax Income Decline
Quarterly pretax income of $563 million declined 13% compared to the year-ago quarter.
Legal Matter Reserve Increase
Results included a $58 million reserve increase associated with the settlement of a legal matter related to bond underwriting for a specific issuer.
Capital Markets Segment Loss
The Capital Markets segment generated a pretax loss of $54 million, impacted by the legal reserve increase.
Decline in Client Domestic Cash Sweep Balances
Client domestic cash suite and enhanced savings program balances ended the quarter at $55.2 billion, down 4% compared to the preceding quarter.
Company Guidance
During Raymond James Financial's Fiscal 2025 Third Quarter Earnings Call, the company reported several key metrics. They achieved net revenues of $3.4 billion, marking a 5% increase from the previous year, while pretax income declined 13% year-over-year to $563 million. The firm also recorded a $58 million reserve increase due to a legal settlement. For the first nine months of fiscal 2025, Raymond James generated record net revenues of $10.3 billion and pretax income of $1.98 billion, up 10% and 5% respectively from the same period in fiscal 2024. Client assets under administration reached a record $1.57 trillion, growing 11% year-over-year. In addition, the firm recruited financial advisers managing $336 million in trailing 12-month production and $52 billion in client assets over the past year. Quarterly domestic net new assets totaled $11.7 billion, translating to a 3.4% annualized growth rate. The company maintained a strong balance sheet, with loans at a record $49.8 billion and a net interest margin of 2.74%. They returned over $1 billion to shareholders through dividends and share repurchases in fiscal 2025.

Raymond James Financial Financial Statement Overview

Summary
Raymond James Financial shows strong revenue and profit growth, efficient cost management, and a solid balance sheet. The company effectively leverages equity for returns and demonstrates improving cash flow management, although maintaining liquidity and managing capital expenditures remain important.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.74B12.84B11.16B9.78B7.89B
Gross Profit12.59B11.34B10.75B9.66B7.66B
EBITDA2.82B2.44B2.28B1.93B1.32B
Net Income2.07B1.74B1.51B1.40B818.00M
Balance Sheet
Total Assets82.99B78.36B80.95B61.89B47.48B
Cash, Cash Equivalents and Short-Term Investments19.26B18.60B16.06B15.52B13.04B
Total Debt4.03B3.48B3.79B3.17B3.28B
Total Liabilities71.33B68.17B71.52B53.59B40.31B
Stockholders Equity11.67B10.21B9.46B8.24B7.11B
Cash Flow
Free Cash Flow1.95B-3.69B-19.00M6.57B3.95B
Operating Cash Flow2.15B-3.51B72.00M6.65B4.07B
Investing Cash Flow-968.00M-274.00M-7.15B-5.14B-4.99B
Financing Cash Flow438.00M1.44B5.88B5.23B4.57B

Raymond James Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price168.53
Price Trends
50DMA
152.42
Positive
100DMA
145.54
Positive
200DMA
150.24
Positive
Market Momentum
MACD
3.73
Negative
RSI
74.92
Negative
STOCH
91.36
Negative
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 168.53 is above the 20-day moving average (MA) of 158.93, above the 50-day MA of 152.42, and above the 200-day MA of 150.24, indicating a bullish trend. The MACD of 3.73 indicates Negative momentum. The RSI at 74.92 is Negative, neither overbought nor oversold. The STOCH value of 91.36 is Negative, 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$30.13B26.2440.36%0.32%26.32%8.63%
78
Outperform
$33.66B15.7818.22%1.16%9.01%14.86%
77
Outperform
$13.78B33.7019.93%1.17%24.88%39.55%
75
Outperform
$11.40B21.0811.48%1.59%12.85%20.21%
72
Outperform
$4.64B16.0716.69%67.71%19.42%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
67
Neutral
$11.76B21.625.75%2.63%1.00%46.98%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RJF
Raymond James Financial
168.53
53.45
46.45%
SNEX
StoneX Group
94.52
39.14
70.68%
JEF
Jefferies
57.66
2.06
3.71%
LPLA
LPL Financial
380.04
159.73
72.50%
SF
Stifel Financial
112.69
26.01
30.01%
HLI
Houlihan Lokey
195.93
47.94
32.39%

Raymond James Financial Corporate Events

Business Operations and StrategyFinancial Disclosures
Raymond James Reports May 2025 Operating Data
Neutral
Jun 25, 2025

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.

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 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.

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.Date of analysis: Jul 25, 2025