Raymond James Financial, Inc. (RJF)
Valuation Overview•Is Raymond James Financial, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 63/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
RJF demonstrates strong business quality with robust profitability and healthy margins (highlighted by a massive 20.9% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($6.8B) and minimal debt risk.
The company maintains stable top-line performance paired with robust earnings compounding (13.8% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 16.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $4.3B | +7.9% | — | — | +11.8% | |
| EBITDA | $735.0M | — | +30.0% | — | — | |
| Net Income | $544.0M | +3.2% | +12.3% | — | +15.6% | |
| EPS (Diluted) | $2.72 | +6.2% | +13.8% | +21.5% | +16.2% | |
| Free Cash Flow | $0.00 | +15.2% | — | -10.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 89.2% | 87.3% | 91.4% | 94.0% |
| Operating Margin | 16.9% | 21.4% | 20.2% | 17.8% |
| Net Margin | 13.1% | 13.7% | 13.8% | 12.3% |
| FCF Margin | 9.1% | -0.5% | 13.1% | 11.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.76 | $2.83 | +2.5% | ||
| Q1'26 | $2.83 | $2.86 | +1.1% | ||
| Q4'25 | $2.83 | $3.11 | +9.9% | ||
| Q3'25 | $2.37 | $2.18 | -8.0% | ||
| Q2'25 | $2.45 | $2.42 | -1.2% | ||
| Q1'25 | $2.62 | $2.93 | +11.8% | ||
| Q4'24 | $2.41 | $2.95 | +22.4% | ||
| Q3'24 | $2.32 | $2.39 | +3.0% |
Total return is +6.5% (1Y), lagging the benchmark by -18.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -4.1% | -13.4% | — |
| 1Y | +6.5% | -18.5% | +1.4% |
| 3YCAGR | +17.8% | -1.0% | +5.8% |
| 5YCAGR | +14.7% | +2.0% | +10.2% |
| 10YCAGR | +17.0% | +3.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Raymond James Financial, Inc. (RJF) valuation, health, and returns.
Raymond James Financial, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $175.82)
Raymond James Financial, Inc. has multiple valuation anchors: DCF Intrinsic Value: $175.82 | Peer Relative Fair Value: $245.10 | Wall Street Analyst Target: $160.50 (implying +3.0% upside). A convergence of these signals offers higher conviction.
Raymond James Financial, Inc. displays good financial health with a composite quality score of 63/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 20.9%.
Raymond James Financial, Inc. pays a 1.3% dividend yield, covered by a 19% payout ratio with 1 years of growth, supplemented by a 4.1% buyback yield.
Raymond James Financial, Inc.'s current growth trajectory is Decelerating. The company achieved +7.9% 1Y revenue growth and +6.2% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 24 analysts, beating EPS expectations in 58% of recent quarters with a 3-quarter streak. The consensus price target represents a +3.0% change from current levels.
Investment risks for Raymond James Financial, Inc. include: -20.1% 1-year max drawdown. Volatility risk is characterized by a beta of 0.84x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.