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.
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.