Raymond James Financial, Inc.
Raymond James Financial, Inc. Fundamental Analysis
Raymond James Financial, Inc. (RJF-PA) shows strong financial fundamentals with a PE ratio of 14.79, profit margin of 13.21%, and ROE of 16.94%. The company generates $17.2B in annual revenue with strong year-over-year growth of 30.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RJF-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakRJF-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRJF-PA trades at attractive valuation levels.
Growth Score
ExcellentRJF-PA delivers strong and consistent growth momentum.
Financial Health Score
ModerateRJF-PA shows balanced financial health with some risks.
Profitability Score
ModerateRJF-PA maintains healthy but balanced margins.
Key Financial Metrics
Is RJF-PA Expensive or Cheap?
P/E Ratio
RJF-PA trades at 14.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RJF-PA's PEG of -17.30 indicates potential undervaluation.
Price to Book
The market values Raymond James Financial, Inc. at 2.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.81 times EBITDA. This signals the market has high growth expectations.
How Well Does RJF-PA Make Money?
Net Profit Margin
For every $100 in sales, Raymond James Financial, Inc. keeps $13.21 as profit after all expenses.
Operating Margin
Core operations generate 16.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.94 in profit for every $100 of shareholder equity.
ROA
Raymond James Financial, Inc. generates $2.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Raymond James Financial, Inc. produces operating cash flow of $1.89B, showing steady but balanced cash generation.
Free Cash Flow
Raymond James Financial, Inc. produces free cash flow of $1.68B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.88 in free cash annually.
FCF Yield
RJF-PA converts 5.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-17.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How RJF-PA Stacks Against Its Sector Peers
| Metric | RJF-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.79 | 18.86 | Better (Cheaper) |
| ROE | 16.94% | 847.00% | Weak |
| Net Margin | 13.21% | 4202.00% | Weak |
| Debt/Equity | 0.37 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.31 | 667.17 | Weak Liquidity |
| ROA | 2.36% | -21543.00% (disorted) | Weak |
RJF-PA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Raymond James Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
99.32%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
104.25%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
281.42%
Industry Style: Value, Dividend, Cyclical
High Growth