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Raymond James Financial Compared to Its Peers

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Beating the market

Raymond James Financial (RJF) generated a return of 4.8% in the last three months and 17.6% in the last year. The stock has garnered a high valuation due to its core banking and Private Client Group activities.

In 1Q18, RJF has an ROE (return on equity) of 3.5% and an ROIC (return on invested capital) of 2.1%. Both have remained constant throughout 4Q17.

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Peer group multiples

The banking industry as a whole is performing well due to the Dodd-Frank Act and lower tax rates and compliance. Raymond James Financial (RJF) has a price-to-book multiple of 2.31x, while its peers Financial Engines (FNGN), Charles Schwab (SCHW), and TD Ameritrade (AMTD) have multiples of 2.05x, 4.50x, and 4.23x, respectively.

Raymond James Financial (RJF) has a debt-to-equity ratio of 383.4%. Morgan Stanley (MS), Charles Schwab (SCHW), and TD Ameritrade (AMTD) have debt-to-equity ratios of 350.3%, 107%, and 34.1%, respectively.

Peer group earnings per share

RJF has a TTM (trailing 12-month) EPS (earning per share) of $4.12. Its TTM PE (price-to-earnings) ratio is 21.79x. Below are the TTM EPS and TTM PE ratios of RJF’s peers:

  • Financial Engines (FNGN): $0.77 and 35.58x
  • Charles Schwab (SCHW): $1.61 and 31.86x
  • TD Ameritrade (AMTD): $1.75 and 30.90x
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