Investment Thesis
Raymond James demonstrates strong operational profitability with 47.5% operating margins and 13.5% net margins, reflecting effective cost management in its brokerage business. However, concerning cash flow metrics—negative operating cash flow of -10.0M and negative free cash flow of -56.0M—suggest potential liquidity stress and quality-of-earnings issues that warrant cautious positioning despite solid balance sheet fundamentals.
RJF Strengths
- Exceptional operating margin of 47.5% indicates efficient core business operations and pricing power
- Strong balance sheet with zero long-term debt and substantial cash position of $9.9B
- Revenue growth of 641.1% YoY demonstrates significant business expansion or favorable market conditions
- Healthy net income of $563.0M with 13.5% net margin shows bottom-line profitability
RJF Risks
- Severe negative operating cash flow (-10.0M) and free cash flow (-56.0M) signals potential cash generation concerns despite accounting profits
- Very low ROE of 4.5% and ROA of 0.6% indicate poor capital efficiency relative to equity and asset base
- Weak interest coverage of 1.9x provides limited cushion for servicing obligations
- Massive liability to asset ratio (76.2B liabilities vs 88.8B assets) creates vulnerability to market disruptions common in financial services
Key Metrics to Watch
- Operating cash flow trend—critical to confirm profitability is sustainable and not driven by accounting adjustments
- Return on equity progression—must improve meaningfully to justify the large capital base
- Asset-liability composition changes—monitor for shifts in leverage or client funding stability
- Operating margin stability—ensure high margins are maintained through market cycles
RJF Financial Metrics
RJF Profitability Ratios
RJF Balance Sheet & Liquidity
RJF 5-Year Financial Trend
5-Year Trend Summary: RAYMOND JAMES FINANCIAL INC's revenue has grown significantly by 61% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.97 reflects profitable operations.
RJF Growth Metrics (YoY)
RJF Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.0B | $563.0M | $2.79 |
| Q3 2025 | $3.8B | $436.0M | $2.12 |
| Q2 2025 | $3.6B | $476.0M | $2.22 |
| Q1 2025 | $3.5B | $498.0M | $2.32 |
| Q3 2024 | $3.3B | $369.0M | $1.71 |
| Q2 2024 | $3.2B | $427.0M | $1.93 |
| Q1 2024 | $3.0B | $498.0M | $2.30 |
| Q3 2023 | $2.8B | $301.0M | $1.38 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RJF Capital Allocation
RJF SEC Filings
Access official SEC EDGAR filings for RAYMOND JAMES FINANCIAL INC (CIK: 0000720005)