RJFNEUTRAL

RJF Gross Margin Analysis

90.5%

Higher than 79% of Financial Services sector peers

Updated 3031h ago·SEC filings & market data

Key Takeaway

# Gross Margin Analysis: Raymond James Financial (RJF) Raymond James retains 90.5 cents of every revenue dollar after direct costs, reflecting strong operational efficiency in its financial services business.

Sector Performance

79th percentile

RJF

90.5%

Sector Median

68.5%

Sector Avg

69.1%

📊

Deep Analysis

# Gross Margin Analysis: Raymond James Financial (RJF)

Raymond James retains 90.5 cents of every revenue dollar after direct costs, reflecting strong operational efficiency in its financial services business. This gross margin substantially exceeds the sector median of 76.6%, placing RJF in the 82nd percentile among financial services peers and indicating above-average profitability relative to competitors. The metric has held steady at 90.5% over the last two quarters, demonstrating consistent cost management without improvement or deterioration. The elevated margin likely reflects RJF's diversified revenue streams and pricing power, though the flat trend suggests limited room for expansion from current levels. For investors, the above-median margin supports the company's competitive position, though the neutral rating suggests other factors may be constraining broader investment appeal.

Frequently Asked Questions

What does the Gross Margin tell investors about RJF?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does RJF's Gross Margin compare to its sector?

RJF's Gross Margin of 90.5% compares to a Financial Services sector median of 68.5%, placing it in the 79th percentile.

Who are RJF's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), JPM (64.3%), CACC (63.0%), HDB (58.4%), COF (57.8%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.