Raymond James Financial Inc (RJF) stock analysis

P/E below its 5-year median

Raymond James Financial's P/E of 14.6 is below its own 5-year median of 14.7.

P/E below the industry

Raymond James Financial's P/E of 14.6 is below the Security Brokers, Dealers, and Flotation median of 15.6.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Raymond James Financial's price-to-book of 2.53 is below the Security Brokers, Dealers, and Flotation median of 3.08.

Trading below fair value

The share price of $167.29 is below our fair value estimate of $175.41.

Margin of safety under 20%

The price is 4.6% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 12.1% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 13.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 8.1% over the last twelve months, against a 5-year average of 21.2% a year.

Growing slower than the industry

Revenue grew 8.0% over the last twelve months; the Security Brokers, Dealers, and Flotation median is 16.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 18.5% over the last twelve months and averaged 17.9% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Raymond James Financial's return on equity of 18.5% is above the Security Brokers, Dealers, and Flotation median of 17.9%.

Earnings grew over 5 years

Net income grew 21.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 13.6% over the last twelve months, against a 5-year average of 13.6%.

Net margin below the industry

Raymond James Financial's net margin of 13.6% is below the Security Brokers, Dealers, and Flotation median of 14.4%.

No debt

Raymond James Financial has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.64; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Raymond James Financial paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; Raymond James Financial yields 1.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.