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1. Company Snapshot

1.a. Company Description

Raymond James Financial, Inc., a diversified financial services company, provides private client group, capital markets, asset management, banking, and other services to individuals, corporations, and municipalities in the United States, Canada, and Europe.The Private Client Group segment offers investment services, portfolio management services, insurance and annuity products, and mutual funds; support to third-party product partners, including sales and marketing support, as well as distribution and accounting, and administrative services; margin loans; and securities borrowing and lending services.The Capital Markets segment provides investment banking services, including equity underwriting, debt underwriting, and merger and acquisition advisory services; and fixed income and equity brokerage services.


The Asset Management segment offers asset management, portfolio management, and related administrative services to retail and institutional clients; and administrative support services, such as record-keeping.The Raymond James Bank segment provides insured deposit accounts; commercial and industrial, commercial real estate (CRE) and CRE construction, tax-exempt, residential, securities-based, and other loans; and loan syndication services.The Other segment engages in the private equity investments, including various direct and third-party private equity investments; and legacy private equity funds.


The company was founded in 1962 and is headquartered in St. Petersburg, Florida.

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1.b. Last Insights on RJF

The recent performance of Raymond James Financial, Inc. was driven by robust trading and investment banking (IB) fees, which likely offset the impact of high costs. The company's Q3 earnings may have dipped slightly, but the growth in trading and IB fees is expected to have lifted overall revenue. Additionally, the firm's Private Client Group is well-positioned to gain market share, contributing to its long-term growth prospects.

1.c. Company Highlights

2. Raymond James Financial's Strong Fiscal 2025 Results Driven by Diversified Businesses

Raymond James Financial reported record net revenues of $14.1 billion for fiscal 2025, representing a 10% growth, and record pretax income of $2.71 billion, up 3% over fiscal 2024. For the fiscal fourth quarter, net revenues were $3.7 billion, growing 8% over the prior year quarter, and pretax income was $731 million. The company's adjusted earnings per diluted share came in at $3.11, beating analyst estimates of $2.83. The annualized return on common equity was 19.6%, and the annualized adjusted return on tangible common equity was 23.9%.

Publication Date: Oct -27

📋 Highlights
  • Record Client Assets:: Client assets reached $1.73 trillion, driven by strong adviser recruitment and market appreciation.
  • Quarterly Revenue Growth:: Net revenues hit $3.7 billion, up 8% YoY and 10% sequentially, with pretax income at $731 million.
  • Bank Segment Performance:: Net bank loans grew 3% to $51.6 billion, led by 22% growth in securities-based loans and 9% in residential mortgages.
  • Capital Strength:: $3.7 billion in parent company cash and a Tier 1 leverage ratio of 13.1%, exceeding regulatory targets with $2.6 billion in excess capital.
  • AI and Tech Investments:: $1.5 billion in senior notes issued to fund AI initiatives and growth projects, targeting 20%+ adjusted pretax margins by FY2026.

Segment Performance

The Private Client Group generated record quarterly net revenues of $2.66 billion, driven by higher PCG assets under administration. The Capital Markets segment saw net revenues grow 6% year-over-year, driven by higher debt underwriting and strong growth in affordable housing investments business revenues. The Asset Management segment achieved record pretax income of $132 million, largely due to higher financial assets under management. The Bank segment reported net revenues of $459 million, with net interest income increasing slightly due to continued loan growth.

Credit Quality and Capital Management

The credit quality of the loan portfolio remains strong, with criticized loans as a percentage of total loans held for investment at 1.28% and nonperforming assets at 29 basis points of Bank segment assets. The company maintains strong liquidity and capital levels, with a Tier 1 leverage ratio of 13.1% and a total capital ratio of 24.1%, both well above regulatory requirements. Raymond James has approximately $2.6 billion in excess capital capacity before reaching the targeted Tier 1 capital ratio of 10%.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio not directly available, we can look at the 'P/B Ratio' at 2.05 and 'P/E Ratio' at 15.14 to gauge the valuation. The 'ROE (%)' is reported at 23.47%, indicating strong profitability. Analysts estimate next year's revenue growth at 10.9%. Given the company's diversified businesses, strong capital management, and growth prospects, the current valuation appears reasonable. The Dividend Yield is 1.23%, providing a relatively stable return component.

3. NewsRoom

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Raymond James Announces $2B Share Repurchase Plan & 8% Dividend Hike

Dec -04

Source: zacks.com

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Edgestream Partners L.P. Increases Stock Position in Raymond James Financial, Inc. $RJF

Dec -04

Source: defenseworld.net

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Raymond James Financial Raises Quarterly Dividends on Common Stock by 8% and Announces Quarterly Dividend on Preferred Stock; Announces Increased Common Stock Repurchase Authorization

Dec -03

Source: globenewswire.com

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Raymond James Announces Full Redemption of its Series B Preferred Stock and Related Depositary Shares

Dec -02

Source: globenewswire.com

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Strategic Buyouts & Diverse Revenues Aid Raymond James Amid Cost Woes

Nov -24

Source: zacks.com

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Final Trades: Raymond James, Zscaler and Palo Alto

Nov -14

Source: youtube.com

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Raymond James Financial, Inc. (RJF) Presents at Wolfe Wealth Symposium 2026 Transcript

Nov -13

Source: seekingalpha.com

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Raymond James CEO: We're very optimistic about the economy going forward

Nov -12

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.91%)

6. Segments

Private Client Group

Expected Growth: 8%

Raymond James Financial's Private Client Group growth is driven by increasing demand for wealth management services, strategic acquisitions, and expansion of financial advisor network. Additionally, the group's focus on client-centric approach, technology enhancements, and diversified product offerings contribute to its 8% growth.

Bank

Expected Growth: 6%

Raymond James Financial, Inc.'s 6% growth is driven by increasing assets under management, expansion of private client group, and growth in investment banking and capital markets. Additionally, the company's focus on wealth management, strong advisory services, and strategic acquisitions contribute to its growth momentum.

Capital Markets

Expected Growth: 9%

Raymond James Financial, Inc.'s 9% growth in Capital Markets is driven by strong investment banking activity, increased trading volumes, and a favorable interest rate environment. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth. Furthermore, the company's diversified revenue streams and strong client relationships have also supported its growth momentum.

Intersegment Eliminations

Expected Growth: 0%

Intersegment Eliminations from Raymond James Financial, Inc. with 0% growth is attributed to the absence of significant transactions between business segments, indicating a lack of internal revenue recognition. This suggests a well-diversified business model with minimal interdependencies, allowing each segment to operate independently without generating eliminations.

Asset Management

Expected Growth: 5%

Raymond James Financial, Inc.'s Asset Management segment growth is driven by increasing demand for wealth management services, expansion of financial advisor network, strategic acquisitions, and strong investment performance. Additionally, the company's focus on technology enhancements, diversification of investment products, and growing retirement plan services also contribute to its 5% growth.

Other

Expected Growth: 4%

Raymond James Financial, Inc.'s 'Other' segment growth is driven by increasing demand for investment products, expansion of private client group services, and strategic acquisitions. Additionally, the company's focus on technology enhancements, diversification of revenue streams, and cost savings initiatives contribute to its growth.

7. Detailed Products

Wealth Management

Raymond James Financial, Inc. offers wealth management services to individuals, families, and institutions, providing personalized investment advice, portfolio management, and financial planning.

Capital Markets

Raymond James Financial, Inc. provides capital markets services, including equity and fixed income trading, investment banking, and research to institutional clients.

Asset Management

Raymond James Financial, Inc. offers a range of asset management products, including mutual funds, exchange-traded funds (ETFs), and separately managed accounts.

Banking and Lending

Raymond James Financial, Inc. provides banking and lending services, including securities-based lending, residential mortgages, and commercial lending.

Investment Banking

Raymond James Financial, Inc. offers investment banking services, including mergers and acquisitions, equity and debt capital markets, and restructuring advisory services.

Research and Consulting

Raymond James Financial, Inc. provides research and consulting services, including equity research, fixed income research, and consulting services.

8. Raymond James Financial, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Raymond James Financial, Inc. is medium due to the presence of alternative financial services and products offered by other companies.

Bargaining Power Of Customers

The bargaining power of customers for Raymond James Financial, Inc. is low due to the company's strong brand reputation and diversified financial services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Raymond James Financial, Inc. is medium due to the company's dependence on a few large suppliers for certain financial products and services.

Threat Of New Entrants

The threat of new entrants for Raymond James Financial, Inc. is low due to the high barriers to entry in the financial services industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Raymond James Financial, Inc. is high due to the competitive nature of the financial services industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.03%
Debt Cost 9.15%
Equity Weight 73.97%
Equity Cost 9.15%
WACC 9.15%
Leverage 35.20%

11. Quality Control: Raymond James Financial, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Morgan Stanley

A-Score: 6.3/10

Value: 5.0

Growth: 5.8

Quality: 5.8

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Schwab

A-Score: 6.2/10

Value: 4.4

Growth: 5.3

Quality: 8.1

Yield: 2.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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Raymond James Financial

A-Score: 6.1/10

Value: 4.2

Growth: 5.6

Quality: 8.1

Yield: 2.0

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

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Goldman Sachs

A-Score: 6.0/10

Value: 5.2

Growth: 5.1

Quality: 4.9

Yield: 4.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

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Truist

A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Prudential Financial

A-Score: 5.5/10

Value: 5.7

Growth: 3.4

Quality: 4.9

Yield: 8.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

163.13$

Current Price

163.13$

Potential

-0.00%

Expected Cash-Flows