Raymond James FinancialRJF

Morningstar Rating

Stock Research and Analysis

by Jason Ren

With transaction volumes beginning to slump from all-time highs, it is nice to have an asset-based revenue cushion that can rebound with the market. Raymond James is well-positioned in that regard. Recurring fees and interest revenue constitute over Read more

Bulls Say

Disruptions in the retail brokerage arena may make it easier for Raymond James to cherry-pick other brokerages' star bankers and brokers, enhancing profitability and client assets under management.

Raymond James' conversion from a thrift to a bank holding company should enable it to make more-profitable corporate loans.

As other banks deleverage, Raymond James will probably be able to buy choice loans at attractive prices.

Recurring fee income ensures that Raymond James has a more stable revenue cushion than other brokerages that are more trade-centric. Read more

Bears Say

Purchasing and syndicating loans in the current environment entails greater risks. If Raymond James experiences chronically large charge-offs, advisors and accounts will take flight.

Transactional revenue still plays a role. Investment banking, proprietary trading, and parts of Raymond James' retail brokerage will still suffer the effects of a diminished stock market.

Writing corporate loans is an acquired skill, and Raymond James may undergo a trial by fire as it ventures into this field during a recessionary period. Read more

Strategy

Raymond James pursues a two-pronged strategy to keep itself profitable and increase its interest revenue. To maintain profitability, the firm recruits experienced brokers from other firms and sheds its Read more

Management

Chairman and CEO Thomas James has helmed the firm since 1970. He, along with other upper management, has carefully steered Raymond James away from taking on excess risk during the housing bubble years, and his conservatism is paying off. That said, Read more

Profile

Founded in 1962, Raymond James is a financial holding company that relies upon its banking, investment banking, asset-management, and retail brokerage services to drive Read more

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