Jefferies Financial Group Inc. Fundamental Analysis (NYSE: JEF)
Jefferies Financial Group Inc. Fundamental Analysis (NYSE: JEF)
Jefferies Financial Group Inc. (NYSE: JEF) shows moderate financial fundamentals with a PE ratio of 12.32, profit margin of 7.97%, and ROE of 11.48%. The company generates $11.7B in annual revenue with weak year-over-year growth of 2.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze JEF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentJEF demonstrates superior asset utilization.
Valuation Score
ExcellentJEF trades at attractive valuation levels.
Growth Score
WeakJEF faces weak or negative growth trends.
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 12.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, JEF's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values Jefferies Financial Group Inc. at 863.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.07 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 $7.97 as profit after all expenses.
Operating Margin
Core operations generate 8.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.48 in profit for every $100 of shareholder equity.
ROA
Jefferies Financial Group Inc. generates $11.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Jefferies Financial Group Inc. produces operating cash flow of $2.06B, showing steady but balanced cash generation.
Free Cash Flow
Jefferies Financial Group Inc. generates strong free cash flow of $1.82B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.97 in free cash annually.
FCF Yield
JEF converts 18.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
863.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
11.23
vs 25 benchmark
ROCE
Return on capital employed
12.52
vs 25 benchmark
How JEF Stacks Against Its Sector Peers
| Metric | JEF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.32 | 20.36 | Better (Cheaper) |
| ROE | 11.48% | 646.00% | Weak |
| Net Margin | 7.97% | -1507.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 828.93 | Weak Liquidity |
| ROA | 1122.64% | -515.00% (disorted) | Strong |
JEF outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, 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
106.49%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
21.61%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-195.85%
Industry Style: Value, Dividend, Cyclical
Declining