NYSE:RJF

Stock Analysis Report

Executive Summary

Raymond James Financial, Inc., through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, and Europe.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Raymond James Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RJF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

RJF

1.0%

US Capital Markets

0.5%

US Market


1 Year Return

22.1%

RJF

19.4%

US Capital Markets

20.3%

US Market

Return vs Industry: RJF exceeded the US Capital Markets industry which returned 19.4% over the past year.

Return vs Market: RJF exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

RJFIndustryMarket
7 Day2.5%1.0%0.5%
30 Day4.8%1.5%2.0%
90 Day14.5%7.4%9.4%
1 Year24.2%22.1%21.8%19.4%22.8%20.3%
3 Year34.4%28.9%40.6%32.7%50.1%40.4%
5 Year90.1%77.3%84.4%67.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Raymond James Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Raymond James Financial undervalued compared to its fair value and its price relative to the market?

31.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RJF ($101.26) is trading below our estimate of fair value ($148.7)

Significantly Below Fair Value: RJF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RJF is good value based on its PE Ratio (13.5x) compared to the Capital Markets industry average (36x).

PE vs Market: RJF is good value based on its PE Ratio (13.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: RJF is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: RJF is good value based on its PB Ratio (2.1x) compared to the US Capital Markets industry average (6.7x).


Next Steps

Future Growth

How is Raymond James Financial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RJF's forecast earnings growth (7.1% per year) is above the savings rate (1.7%).

Earnings vs Market: RJF's earnings (7.1% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: RJF's earnings are forecast to grow, but not significantly.

Revenue vs Market: RJF's revenue (5.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: RJF's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RJF's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Raymond James Financial performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RJF has high quality earnings.

Growing Profit Margin: RJF's current net profit margins (13.4%) are higher than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: RJF's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: RJF's earnings growth over the past year (6.5%) is below its 5-year average (18.9% per year).

Earnings vs Industry: RJF earnings growth over the past year (6.5%) underperformed the Capital Markets industry 8.4%.


Return on Equity

High ROE: RJF's Return on Equity (15.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Raymond James Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RJF has a low level of unsold assets or inventory.

Debt Coverage by Assets: RJF's debt is covered by short term assets (assets are 10.6x debt).


Financial Institutions Analysis

Asset Level: RJF's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if RJF has a sufficient allowance for bad loans.

Low Risk Liabilities: RJF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if RJF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RJF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if RJF has an appropriate level of bad loans.


Next Steps

Dividend

What is Raymond James Financial's current dividend yield, its reliability and sustainability?

1.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RJF's dividend (1.46%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: RJF's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: RJF's dividends per share have been stable in the past 10 years.

Growing Dividend: RJF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.5%), RJF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RJF's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Paul Reilly (64yo)

9.8yrs

Tenure

US$13,090,394

Compensation

Mr. Paul Christopher Reilly serves as the Chief Executive Officer of Raymond James Financial Inc in May 2010, after joining the Company’s management team as President in May 2009 until April 2010. He has s ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD13.09M) is about average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Reilly
Chairman & CEO 9.8yrsUS$13.09m0.066% $9.3m
James Bunn
President of Global Equities & Investment Banking1.2yrsUS$4.82m0.0076% $1.1m
Bella Allaire
Executive Vice President of Technology & Operations0yrsUS$3.71m0.050% $7.0m
Jeffrey Julien
Executive VP of Finance & Senior Adviser0.2yrsUS$3.70m0.042% $5.9m
Scott Curtis
President of Private Client Group1.7yrsUS$3.32m0.060% $8.5m
John Carson
President7.8yrsUS$3.48m0.052% $7.3m
Paul Shoukry
CFO, Senior VP of Finance & Investor Relations and Treasurer0yrsno data0.0030% $417.5k
Thomas Tremaine
Executive VP & COO1.1yrsno datano data
Jeffrey Dowdle
COO & Head of Asset Management Group0.3yrsno data0.042% $5.9m
Larry Adam
Chief Investment Officer1.3yrsno datano data

1.2yrs

Average Tenure

62yo

Average Age

Experienced Management: RJF's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Reilly
Chairman & CEO 9.8yrsUS$13.09m0.066% $9.3m
Paul Allison
Chairman11.1yrsUS$1.80m0.026% $3.7m
Thomas James
Chairman Emeritus3yrsUS$3.08m9.96% $1.4b
Francis Godbold
Vice Chairman of the Board18.1yrsno data0.098% $13.8m
Susan Story
Lead Independent Director4.1yrsUS$286.14k0.018% $2.5m
Shelley Broader
Non-Executive Director12yrsUS$253.64k0.016% $2.3m
Jeffrey Edwards
Independent Non-Executive Director6yrsUS$253.64k0.0088% $1.2m
Charles von Arentschildt
Independent Non-Executive Director4.5yrsUS$251.91k0.0051% $724.9k
Benjamin Esty
Independent Non-Executive Director6yrsUS$308.64k0.0083% $1.2m
Gordon Johnson
Independent Non-Executive Director9.5yrsUS$348.41k0.013% $1.9m

6.0yrs

Average Tenure

60yo

Average Age

Experienced Board: RJF's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RJF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Raymond James Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Raymond James Financial, Inc.
  • Ticker: RJF
  • Exchange: NYSE
  • Founded: 1962
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$14.104b
  • Shares outstanding: 139.28m
  • Website: https://www.raymondjames.com

Number of Employees


Location

  • Raymond James Financial, Inc.
  • 880 Carillon Parkway
  • St. Petersburg
  • Florida
  • 33716
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RJFNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1983
RJFDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1983
0KU1LSE (London Stock Exchange)YesCommon StockGBUSDJul 1983
RJF *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1983
R1JF34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Raymond James Financial, Inc., through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, and Europe. It operates in five segments: Private Client Group (PCG), Capital Markets, Asset Management, Raymond James (RJ) Bank, and Other. The PCG segment offers securities transaction services, including the sale of equities, mutual funds, fixed income products, and insurance and annuity products to retail clients; investment advisory, investment, and margin loan services; custodial, trading, research, and other support services; diversification strategies and alternative investment products; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment engages in the fixed income and equity institutional sales and trading activities; equity research and investment banking activities; and syndication and related management of investments that qualify for tax credits. It also provides debt and equity underwriting, merger and acquisition, advisory, and public finance services. The Asset Management segment offers portfolio management and related administrative services for retail and institutional clients; and administrative support services, such as record-keeping. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, residential loans, and other loans. The Other segment engages in the private equity activities, including various direct and third-party private equity investments; and private equity funds. The company was founded in 1962 and is headquartered in St. Petersburg, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:52
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.