Raymond James Operating Margin vs. Return On Equity
| RJF Stock | USD 115.54 1.69 1.44% |
Raymond James Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.92 | 0.88 |
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| Net Profit Margin | 0.0764 | 0.14 |
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| Operating Profit Margin | 0.59 | 0.57 |
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| Pretax Profit Margin | 0.12 | 0.18 |
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| Return On Assets | 0.022 | 0.0255 |
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| Return On Equity | 0.17 | 0.2 |
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For Raymond James profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Raymond James to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Raymond James Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Raymond James's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Raymond James Financial over time as well as its relative position and ranking within its peers.
Raymond |
Raymond James' Revenue Breakdown by Earning Segment
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Is Investment Banking & Brokerage space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Raymond James. If investors know Raymond will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Raymond James listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.15 | Dividend Share 1.74 | Earnings Share 8.28 | Revenue Per Share 57.308 | Quarterly Revenue Growth 0.078 |
The market value of Raymond James Financial is measured differently than its book value, which is the value of Raymond that is recorded on the company's balance sheet. Investors also form their own opinion of Raymond James' value that differs from its market value or its book value, called intrinsic value, which is Raymond James' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Raymond James' market value can be influenced by many factors that don't directly affect Raymond James' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Raymond James' value and its price as these two are different measures arrived at by different means. Investors typically determine if Raymond James is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Raymond James' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Raymond James Financial Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Raymond James's current stock value. Our valuation model uses many indicators to compare Raymond James value to that of its competitors to determine the firm's financial worth. Raymond James Financial is currently regarded as top stock in operating margin category among its peers. It is rated third in return on equity category among its peers reporting about 0.87 of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Raymond James Financial is roughly 1.15 . At this time, Raymond James' Operating Profit Margin is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Raymond James by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Raymond Return On Equity vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Raymond James |
| = | 0.20 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Raymond James |
| = | 0.17 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Raymond Return On Equity Comparison
Raymond James is currently under evaluation in return on equity category among its peers.
Raymond James Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Raymond James, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Raymond James will eventually generate negative long term returns. The profitability progress is the general direction of Raymond James' change in net profit over the period of time. It can combine multiple indicators of Raymond James, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -873.9 M | -830.2 M | |
| Operating Income | 8.3 B | 8.7 B | |
| Net Income | 2 B | 2.1 B | |
| Income Tax Expense | 622.1 M | 653.3 M | |
| Income Before Tax | 2.6 B | 2.8 B | |
| Total Other Income Expense Net | -4.4 B | -4.2 B | |
| Net Income Applicable To Common Shares | 2 B | 2.1 B | |
| Net Income From Continuing Ops | 2 B | 1.7 B | |
| Net Interest Income | 2.7 B | 2.9 B | |
| Interest Income | 4.3 B | 4.5 B | |
| Non Operating Income Net Other | 900 M | 817.6 M | |
| Change To Netincome | 408.2 M | 428.7 M | |
| Net Income Per Share | 7.39 | 7.76 | |
| Income Quality | (2.32) | (2.21) | |
| Net Income Per E B T | 0.69 | 0.52 |
Raymond Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Raymond James. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Raymond James position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Raymond James' important profitability drivers and their relationship over time.
Use Raymond James in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Raymond James position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Raymond James will appreciate offsetting losses from the drop in the long position's value.Raymond James Pair Trading
Raymond James Financial Pair Trading Analysis
The ability to find closely correlated positions to Raymond James could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Raymond James when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Raymond James - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Raymond James Financial to buy it.
The correlation of Raymond James is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Raymond James moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Raymond James Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Raymond James can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Raymond James position
In addition to having Raymond James in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Money Market Funds Thematic Idea Now
Money Market Funds
Funds or Etfs investing in various types of short-term (less than one year) fixed income instruments of high-quality and liquidity. The Money Market Funds theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Money Market Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Raymond Stock
When determining whether Raymond James Financial is a strong investment it is important to analyze Raymond James' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Raymond James' future performance. For an informed investment choice regarding Raymond Stock, refer to the following important reports:Check out Your Equity Center. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project Raymond James' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Raymond James Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Raymond James' income statement, its balance sheet, and the statement of cash flows.