JEFFERIES FINANCIAL GROUP IN (JEF) Stock Fundamental Analysis
NYSE:JEF - New York Stock Exchange, Inc. - US47233W1099 - Common Stock - Currency: USD
JEF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 228 industry peers in the Capital Markets industry. JEF has a bad profitability rating. Also its financial health evaluation is rather negative. JEF is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
JEF had positive earnings in the past year.
In the past year JEF has reported a negative cash flow from operations.
JEF had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: JEF reported negative operating cash flow in multiple years.
1.2 Ratios
JEF has a Return On Assets of 1.27%. This is in the lower half of the industry: JEF underperforms 63.44% of its industry peers.
JEF's Return On Equity of 8.06% is in line compared to the rest of the industry. JEF outperforms 43.17% of its industry peers.
JEF's Return On Invested Capital of 1.69% is on the low side compared to the rest of the industry. JEF is outperformed by 66.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JEF is significantly below the industry average of 7.06%.
The 3 year average ROIC (1.30%) for JEF is below the current ROIC(1.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 8.06% | ||
| ROIC | 1.69% |
ROA(3y)1%
ROA(5y)1.44%
ROE(3y)5.61%
ROE(5y)8.14%
ROIC(3y)1.3%
ROIC(5y)1.93%
1.3 Margins
The Profit Margin of JEF (6.27%) is worse than 69.60% of its industry peers.
In the last couple of years the Profit Margin of JEF has declined.
JEF has a worse Operating Margin (9.38%) than 70.48% of its industry peers.
In the last couple of years the Operating Margin of JEF has grown nicely.
JEF has a better Gross Margin (61.14%) than 69.16% of its industry peers.
In the last couple of years the Gross Margin of JEF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.38% | ||
| PM (TTM) | 6.27% | ||
| GM | 61.14% |
OM growth 3Y-28.34%
OM growth 5Y41.39%
PM growth 3Y-29.98%
PM growth 5Y-19.45%
GM growth 3Y-9.4%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
Compared to 1 year ago, JEF has less shares outstanding
JEF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for JEF is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that JEF is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.39, JEF is doing worse than 68.28% of the companies in the same industry.
JEF has a Debt/Equity ratio of 3.07. This is a high value indicating a heavy dependency on external financing.
JEF's Debt to Equity ratio of 3.07 is on the low side compared to the rest of the industry. JEF is outperformed by 81.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
JEF has a Current Ratio of 0.70. This is a bad value and indicates that JEF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, JEF is doing worse than 67.84% of the companies in the same industry.
JEF has a Quick Ratio of 0.70. This is a bad value and indicates that JEF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of JEF (0.70) is worse than 67.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
JEF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 95.27%, which is quite impressive.
The Earnings Per Share has been growing by 17.92% on average over the past years. This is quite good.
The Revenue has grown by 40.23% in the past year. This is a very strong growth!
JEF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.66% yearly.
EPS 1Y (TTM)95.27%
EPS 3Y-21.11%
EPS 5Y17.92%
EPS Q2Q%-17.39%
Revenue 1Y (TTM)40.23%
Revenue growth 3Y5.57%
Revenue growth 5Y15.66%
Sales Q2Q%-8.35%
3.2 Future
JEF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.80% yearly.
The Revenue is expected to grow by 9.86% on average over the next years. This is quite good.
EPS Next Y33.38%
EPS Next 2Y37.11%
EPS Next 3Y32.8%
EPS Next 5YN/A
Revenue Next Year0.76%
Revenue Next 2Y7.97%
Revenue Next 3Y9.86%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
JEF is valuated correctly with a Price/Earnings ratio of 14.82.
The rest of the industry has a similar Price/Earnings ratio as JEF.
JEF is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.57 indicates a rather cheap valuation of JEF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JEF indicates a rather cheap valuation: JEF is cheaper than 80.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, JEF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JEF is valued cheaply inside the industry as 86.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
JEF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as JEF's earnings are expected to grow with 32.80% in the coming years.
PEG (NY)0.44
PEG (5Y)0.83
EPS Next 2Y37.11%
EPS Next 3Y32.8%
5. Dividend
5.1 Amount
JEF has a Yearly Dividend Yield of 3.73%.
The stock price of JEF dropped by -43.45% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 8.65, JEF has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, JEF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
The dividend of JEF is nicely growing with an annual growth rate of 23.90%!
JEF has been paying a dividend for at least 10 years, so it has a reliable track record.
JEF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)23.9%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
JEF pays out 37.00% of its income as dividend. This is a sustainable payout ratio.
JEF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37%
EPS Next 2Y37.11%
EPS Next 3Y32.8%
42.84
+0.24 (+0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners72.8%
Inst Owner Change0.03%
Ins Owners21.09%
Ins Owner Change-3.06%
Market Cap8.84B
Analysts77.78
Price Target73.78 (72.22%)
Short Float %1.81%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend1.46
Dividend Growth(5Y)23.9%
DP37%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.36%
Min EPS beat(2)-4.18%
Max EPS beat(2)1.46%
EPS beat(4)2
Avg EPS beat(4)-2.89%
Min EPS beat(4)-8.91%
Max EPS beat(4)1.46%
EPS beat(8)4
Avg EPS beat(8)-4.57%
EPS beat(12)6
Avg EPS beat(12)3.18%
EPS beat(16)9
Avg EPS beat(16)11.87%
Revenue beat(2)1
Avg Revenue beat(2)3.36%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)9.19%
Revenue beat(4)3
Avg Revenue beat(4)5.8%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)13.53%
Revenue beat(8)4
Avg Revenue beat(8)9.41%
Revenue beat(12)8
Avg Revenue beat(12)16.53%
Revenue beat(16)12
Avg Revenue beat(16)19.17%
PT rev (1m)-16.38%
PT rev (3m)-18.73%
EPS NQ rev (1m)-4.33%
EPS NQ rev (3m)-17.18%
EPS NY rev (1m)-9.25%
EPS NY rev (3m)-13.96%
Revenue NQ rev (1m)-2.23%
Revenue NQ rev (3m)-5.24%
Revenue NY rev (1m)-13.36%
Revenue NY rev (3m)-14.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 7.57 | ||
| P/S | 0.68 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.87 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)2.89
EY6.75%
EPS(NY)5.66
Fwd EY13.21%
FCF(TTM)-2.29
FCFYN/A
OCF(TTM)-1.08
OCFYN/A
SpS63.35
BVpS49.24
TBVpS39.28
PEG (NY)0.44
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 8.06% | ||
| ROCE | 3.32% | ||
| ROIC | 1.69% | ||
| ROICexc | 2.2% | ||
| ROICexgc | 2.52% | ||
| OM | 9.38% | ||
| PM (TTM) | 6.27% | ||
| GM | 61.14% | ||
| FCFM | N/A |
ROA(3y)1%
ROA(5y)1.44%
ROE(3y)5.61%
ROE(5y)8.14%
ROIC(3y)1.3%
ROIC(5y)1.93%
ROICexc(3y)1.68%
ROICexc(5y)2.49%
ROICexgc(3y)1.96%
ROICexgc(5y)2.87%
ROCE(3y)2.44%
ROCE(5y)3.91%
ROICexcg growth 3Y-27.28%
ROICexcg growth 5Y58.07%
ROICexc growth 3Y-27.49%
ROICexc growth 5Y57.68%
OM growth 3Y-28.34%
OM growth 5Y41.39%
PM growth 3Y-29.98%
PM growth 5Y-19.45%
GM growth 3Y-9.4%
GM growth 5Y0.11%
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 21.93 | ||
| Cap/Depr | 126.65% | ||
| Cap/Sales | 1.92% | ||
| Interest Coverage | 0.36 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.39 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)82.05%
Cap/Depr(5y)95.35%
Cap/Sales(3y)1.84%
Cap/Sales(5y)1.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)95.27%
EPS 3Y-21.11%
EPS 5Y17.92%
EPS Q2Q%-17.39%
EPS Next Y33.38%
EPS Next 2Y37.11%
EPS Next 3Y32.8%
EPS Next 5YN/A
Revenue 1Y (TTM)40.23%
Revenue growth 3Y5.57%
Revenue growth 5Y15.66%
Sales Q2Q%-8.35%
Revenue Next Year0.76%
Revenue Next 2Y7.97%
Revenue Next 3Y9.86%
Revenue Next 5YN/A
EBIT growth 1Y197.88%
EBIT growth 3Y-24.35%
EBIT growth 5Y63.52%
EBIT Next Year3.77%
EBIT Next 3Y25.32%
EBIT Next 5YN/A
FCF growth 1Y76.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y88.76%
OCF growth 3YN/A
OCF growth 5YN/A