Raymond James Financial, Inc. (RJF) | Investment Case

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.

Show Full description

1.b. Last Insights on RJF

Raymond James Financial's recent performance was driven by record revenues of $3.7 billion and strategic acquisitions, including Clark Capital and GreensLedge. The company's Q1 2026 earnings call highlights its robust growth in assets under management and strong advisor recruitment. A $2 billion share repurchase plan and an 8% dividend hike also underscore its solid balance sheet and payout strength. Adjusted return on common equity stood at 21.4%, positioning RJF for long-term expansion.

1.c. Company Highlights

Last Price	158.26
Change Percentage	0.15%
Open	157.11
Previous Close	158.03
Market Cap ( Millions)	31252
Volume	1219362
Year High	177.66
Year Low	117.57
M A 50	165.56
M A 200	161.21

FCF Yield	4.97%
Dividend Yield	1.29%
ROE	16.94%
Debt / Equity	36.51%
Net Debt / EBIDTA	-186.59%
Price To Book	2.48
Price Earnings Ratio	14.87
Price To FCF	20.11
Price To sales	1.97
EV / EBITDA	9.13

2. Raymond James Financial's Strong Q1 2026 Earnings: A Closer Look

Raymond James Financial reported record net revenues of $3.7 billion for the fiscal first quarter, with net income available to common shareholders reaching $577 million, resulting in adjusted earnings per diluted share of $2.86. This beat analysts' estimates of $2.83. The company's pretax margin for the quarter was 19.5%, and adjusted pretax margin was 20%. The Private Client Group generated pretax income of $439 million on record quarterly net revenues of $2.77 billion, driven by higher PCG assets under administration.

Publication Date: Feb -09

                                    📋 Highlights
                                    Record Net Revenues and Earnings::
                                                The firm reported $3.7 billion in net revenues with adjusted EPS of $2.86, reflecting strong profitability and operational efficiency.
Private Client Group Performance::
                                                Generated $439 million in pretax income on $2.77 billion in revenues, driven by higher assets under administration and market appreciation.
Adviser Recruitment Success::
                                                Added $460 million in trailing 12-month production and $63 billion in client assets from recruited advisers over the past year.
Technology Investment::
                                                $1.1 billion allocated to AI and technology to enhance adviser productivity and client solutions, differentiating the firm competitively.
Share Repurchase Commitment::
                                                Repurchased $400 million in shares, maintaining a consistent $400–$500 million quarterly target to return capital to shareholders.

                                

Revenue Growth and Margin Expansion

The company's robust revenue growth was fueled by its strong adviser recruiting pipeline, with trailing 12-month production totaling $460 million and over $63 billion of client assets. The Private Client Group's results were driven by market appreciation, retention, and the consistent addition of net new assets. As Paul Shoukry mentioned, "Our optimism about future growth is fueled by our robust adviser recruiting pipeline and strong levels of commitments to join in the coming quarters."

Valuation and Dividend Yield

With a P/E Ratio of 16.17 and a Dividend Yield of 1.19%, Raymond James Financial appears to be reasonably valued. The company's Price-to-Tangible Book Value is not directly available, but its P/B Ratio of 2.72 suggests a premium valuation. However, its strong financial performance and growth prospects may justify this premium. The company's commitment to returning capital to shareholders is evident in its $400 million share repurchase during the quarter.

Business Outlook and Growth Prospects

Raymond James Financial is confident in its ability to sustain growth, driven by strong retention and recruiting results, as well as a focus on quality over quantity. The company's investment banking pipeline remains robust, with pent-up demand from buyers and sellers. As Paul Shoukry emphasized, "We are confident that our established approach and focus on the power of personal relationships will continue to endure in both good times and more challenging times."

Expense Management and Operating Leverage

The company's compensation ratio was 65.4% for the quarter, slightly above the target of 65%. Non-compensation expenses increased 8% over the year-ago quarter, driven by technology investments. However, the company continues to manage its expenses effectively, with a focus on achieving scale and critical mass to drive growth.

3. NewsRoom

Raymond James Financial Declares Quarterly Dividend on Common Stock

Feb -19

Source: globenewswire.com

Atria Investments Inc Has $3.71 Million Stock Holdings in Raymond James Financial, Inc. $RJF

Feb -16

Source: defenseworld.net

8,667 Shares in Raymond James Financial, Inc. $RJF Purchased by Caprock Group LLC

Feb -15

Source: defenseworld.net

AI Shockwave: SCHW, LPLA & Others Slide on Disruption Fear

Feb -12

Source: zacks.com

AI Disruption Hit Multiple Sector ETFs: Is the Fear Overblown?

Feb -12

Source: zacks.com

Raymond James Financial, Inc. (RJF) Presents at Bank of America Financial Services Conference 2026 Transcript

Feb -11

Source: seekingalpha.com

Stock Market Today: Major Indexes Head Lower, Treasury Yields Pare Gains as Investors Assess Stronger-Than-Expected January Jobs Report

Feb -11

Source: investopedia.com

Raymond James: Excellent Buy-The-Dip Opportunity

Feb -11

Source: seekingalpha.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

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Morgan Stanley

A-Score: 6.4/10

Value: 5.1

Growth: 5.7

Quality: 5.8

Yield: 5.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

Schwab

A-Score: 6.0/10

Value: 4.3

Growth: 5.3

Quality: 8.4

Yield: 2.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

Goldman Sachs

A-Score: 6.0/10

Value: 5.3

Growth: 5.1

Quality: 4.9

Yield: 4.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

Raymond James Financial

A-Score: 6.0/10

Value: 5.4

Growth: 7.6

Quality: 7.2

Yield: 2.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

Prudential Financial

A-Score: 6.0/10

Value: 7.0

Growth: 3.4

Quality: 5.3

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.94%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.15%

Raymond James Financial, Inc. - US7547301090

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on RJF

1.c. Company Highlights

Average Quality

Stable Momentum

Medium Volatility

Revenues Beats

Better Quality

Earnings Beats

Fairly Valued

Average Yield

Revenues Miss

Strong Momentum

Earnings Miss

Higher Growth

Expensive

2. Raymond James Financial's Strong Q1 2026 Earnings: A Closer Look

Revenue Growth and Margin Expansion

Valuation and Dividend Yield

Business Outlook and Growth Prospects

Expense Management and Operating Leverage

3. NewsRoom

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%

Bank

Expected Growth: 6%

Capital Markets

Expected Growth: 9%

Intersegment Eliminations

Expected Growth: 0%

Asset Management

Expected Growth: 5%

Other

Expected Growth: 4%

7. Detailed Products

Wealth Management

Capital Markets

Asset Management

Banking and Lending

Investment Banking

Research and Consulting

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

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

158.26$

Current Price

12.e Scoring ^Insights

12.f DCF ^BETA