Raymond James Financial Inc
Exchange: NYSESector: Financial ServicesIndustry: Capital Markets
Raymond James Financial, Inc. (our parent company), is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations, and municipalities. The company has approximately 8,700 financial advisors. Total client assets are $1.45 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF.
Did you know?
Pays a 1.38% dividend yield.
Current Price
$153.41
-0.72%GoodMoat Value
$495.18
222.8% undervaluedProfile
Valuation (TTM)
Market Cap$30.17B
P/E14.42
EV$20.14B
P/B2.41
Shares Out196.67M
P/Sales2.12
Revenue$14.26B
EV/EBITDA7.51
Raymond James Financial Inc (RJF) Stock Analysis
GoodMoat Analysis
Raymond James Financial appears to be a fundamentally strong, profitable business with a moderate competitive moat, but it is trading at a valuation that the GoodMoat framework suggests is deeply undervalued relative to its target price. The company's financial quality is adequate, with strong returns on equity and a solid balance sheet. This significant price-to-value discrepancy makes it a compelling candidate for further due diligence.
Read full analysis
Raymond James Financial is a diversified financial services holding company providing investment banking, asset management, and private client brokerage services. Applying the GoodMoat framework, the company demonstrates a moderate competitive moat. It likely scores points in Moat Identification for its niche dominance as a major player in the private client advisor space, high switching costs for advisors and clients, and a strong brand and culture in its core markets. Its founder-led history and significant insider ownership also contribute to its moat score, which we estimate to be at or above the 5+ threshold required to proceed. In terms of Quality Indicators, the company shows strength with a high ROE of 16.8%, a reasonable debt/equity ratio of 0.43, and GAAP profitability with a 14.7% net margin. Its free cash flow yield of 7.8% is attractive. However, its 5.7% YoY revenue growth is modest, which tempers the overall quality rating, likely placing it in the 'Adequate' category. The most striking finding is the valuation. At a price of $145.85, the stock trades at a P/E of 13.7x. The GoodMoat target price of $495.18 implies a massive margin of safety of over 70%, which falls into the 'Deeply Undervalued' band (>40%) per the framework's DCF analysis standards. Following the Decision Framework, the company passes the Moat & Quality Gate. Given the extreme valuation disconnect and the absence of immediate high-confidence red flags in the provided data, the assessment leans strongly favourable, warranting a deeper investigation into the assumptions behind the target price and the company's growth drivers. Analysis based on data as of 2024-05-15.
Market Cap$30.17B
Current Price$153.41
P/E Ratio14.42
Forward P/E—
PEG Ratio-4.71
EPS$10.30
Book Value$63.57
P/B Ratio2.41
RJF Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 31.3% FCF growth (CAGR)
Cash vs Debt
Net Cash: 9.5B
Revenue
7.7B
FY19
8.0B
FY20
9.8B
FY21
11.0B
FY22
11.6B
FY23
12.8B
FY24
14.1B
FY25
Net Income
1.0B
FY19
818M
FY20
1.4B
FY21
1.5B
FY22
1.7B
FY23
2.1B
FY24
2.1B
FY25
RJF 52-Week Range
$135.23
$174.66
50-Day MA: $149.92200-Day MA: $160.04
Did you know?
Price sits at 46% of its 52-week range.
Raymond James Financial Inc (RJF) Financial Summary
Raymond James Financial Inc (RJF) is a Financial Services company in the Capital Markets industry, listed on NYSE. The stock currently trades at $153.41 with a market capitalization of $30.17B.
Key valuation metrics include a P/E ratio of 14.42, price-to-book ratio of 2.41, and EPS of $10.30. The company reports a profit margin of 14.7% and return on equity of 16.8%.
RJF Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $30.17B |
| P/E Ratio | 14.42 |
| EPS | $10.30 |
| P/B Ratio | 2.41 |
| P/S Ratio | 2.12 |
| EV/EBITDA | 7.51 |
| Dividend Yield | 1.38% |
| Profit Margin | 14.7% |
| Return on Equity | 16.8% |
| Debt/Equity | 0.43 |
RJF Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $7.74B | $1.03B |
| FY20 | $7.99B | $818.00M |
| FY21 | $9.76B | $1.40B |
| FY22 | $11.00B | $1.51B |
| FY23 | $11.62B | $1.74B |
| FY24 | $12.82B | $2.07B |
| FY25 | $14.06B | $2.13B |
Raymond James Financial Inc (RJF) Valuation
Based on GoodMoat's DCF model, Raymond James Financial Inc has a fair value estimate of $495.18. At the current price of $153.41, the stock appears 69.0% undervalued relative to our intrinsic value estimate.
RJF Quality Indicators
Raymond James Financial Inc maintains a profit margin of 14.7% and an operating margin of 19.3%. Return on equity stands at 16.8%. Debt-to-equity ratio is 0.43.
About Raymond James Financial Inc
Raymond James Financial, Inc. (our parent company), is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations, and municipalities. The company has approximately 8,700 financial advisors. Total client assets are $1.45 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF.
RJF Free Cash Flow
Raymond James Financial Inc generated $2.25B in trailing twelve-month free cash flow, representing an FCF yield of 7.44%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
RJF Shares Outstanding
Raymond James Financial Inc has 0.20 billion shares outstanding at a share price of $153.41, giving it a market capitalization of $30.17B.
RJF Recent Insider Trades
Recent insider transactions at Raymond James Financial Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Allaire Bella Loykhter (Chief Admin Officer) | SELL | 29,551 | $4.21M |
| Santelli Jonathan N (EVP, General Counsel) | SELL | 4,500 | $767079.00 |
| REILLY PAUL C (Executive Chair) | SELL | 20,270 | $3.33M |