Jefferies Financial Group Inc.
Jefferies Financial Group Inc. Fundamental Analysis
Jefferies Financial Group Inc. (JEF) shows moderate financial fundamentals with a PE ratio of 16.11, profit margin of 6.56%, and ROE of 6.84%. The company generates $10.4B in annual revenue with strong year-over-year growth of 45.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JEF's fundamental strength across five key dimensions:
Efficiency Score
WeakJEF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentJEF trades at attractive valuation levels.
Growth Score
ModerateJEF shows steady but slowing expansion.
Financial Health Score
ModerateJEF shows balanced financial health with some risks.
Profitability Score
WeakJEF struggles to sustain strong margins.
Key Financial Metrics
Is JEF Expensive or Cheap?
P/E Ratio
JEF trades at 16.11 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, JEF's PEG of -6.93 indicates potential undervaluation.
Price to Book
The market values Jefferies Financial Group Inc. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.20 times EBITDA. This is generally considered low.
How Well Does JEF Make Money?
Net Profit Margin
For every $100 in sales, Jefferies Financial Group Inc. keeps $6.56 as profit after all expenses.
Operating Margin
Core operations generate 6.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.84 in profit for every $100 of shareholder equity.
ROA
Jefferies Financial Group Inc. generates $0.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Jefferies Financial Group Inc. generates limited operating cash flow of $-1.44B, signaling weaker underlying cash strength.
Free Cash Flow
Jefferies Financial Group Inc. generates weak or negative free cash flow of $-1.64B, restricting financial flexibility.
FCF Per Share
Each share generates $-7.93 in free cash annually.
FCF Yield
JEF converts -15.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How JEF Stacks Against Its Sector Peers
| Metric | JEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.11 | 18.86 | Better (Cheaper) |
| ROE | 6.84% | 847.00% | Weak |
| Net Margin | 6.56% | 4202.00% | Weak |
| Debt/Equity | 2.25 | 0.91 | Weak (High Leverage) |
| Current Ratio | 2.43 | 667.17 | Strong Liquidity |
| ROA | 0.93% | -21543.00% (disorted) | Weak |
JEF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Jefferies Financial Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
295.44%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
10.29%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
63.82%
Industry Style: Value, Dividend, Cyclical
High Growth