JEFFERIES FINANCIAL GROUP IN (JEF) Stock Fundamental Analysis
NYSE:JEF - New York Stock Exchange, Inc. - US47233W1099 - Common Stock - Currency: USD
Overall JEF gets a fundamental rating of 4 out of 10. We evaluated JEF against 225 industry peers in the Capital Markets industry. JEF has a bad profitability rating. Also its financial health evaluation is rather negative. JEF is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year JEF was profitable.
JEF had a negative operating cash flow in the past year.
Each year in the past 5 years JEF has been profitable.
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 64.84% of its industry peers.
With a Return On Equity value of 8.06%, JEF perfoms like the industry average, outperforming 45.66% of the companies in the same industry.
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 65.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JEF is significantly below the industry average of 6.76%.
The last Return On Invested Capital (1.69%) for JEF is above the 3 year average (1.30%), which is a sign of increasing profitability.
| 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 67.12% of its industry peers.
In the last couple of years the Profit Margin of JEF has declined.
JEF has a Operating Margin of 9.38%. This is in the lower half of the industry: JEF underperforms 70.32% of its industry peers.
JEF's Operating Margin has improved in the last couple of years.
JEF has a Gross Margin of 61.14%. This is in the better half of the industry: JEF outperforms 68.49% 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
Compared to 5 years ago, JEF has less shares outstanding
JEF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.44, we must say that JEF is in the distress zone and has some risk of bankruptcy.
JEF has a Altman-Z score of 0.44. This is in the lower half of the industry: JEF underperforms 70.78% of its industry peers.
A Debt/Equity ratio of 3.07 is on the high side and indicates that JEF has dependencies on debt financing.
With a Debt to Equity ratio value of 3.07, JEF is not doing good in the industry: 82.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
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.
JEF has a Current ratio of 0.70. This is in the lower half of the industry: JEF underperforms 65.75% of its industry peers.
A Quick Ratio of 0.70 indicates that JEF may have some problems paying its short term obligations.
JEF's Quick ratio of 0.70 is on the low side compared to the rest of the industry. JEF is outperformed by 65.30% 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 126.32%, which is quite impressive.
JEF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.92% yearly.
Looking at the last year, JEF shows a very strong growth in Revenue. The Revenue has grown by 74.26%.
The Revenue has been growing by 15.66% on average over the past years. This is quite good.
EPS 1Y (TTM)126.32%
EPS 3Y-21.11%
EPS 5Y17.92%
EPS Q2Q%220.69%
Revenue 1Y (TTM)74.26%
Revenue growth 3Y5.57%
Revenue growth 5Y15.66%
Sales Q2Q%63.43%
3.2 Future
The Earnings Per Share is expected to grow by 31.75% on average over the next years. This is a very strong growth
Based on estimates for the next years, JEF will show a quite strong growth in Revenue. The Revenue will grow by 12.19% on average per year.
EPS Next Y49.49%
EPS Next 2Y40.67%
EPS Next 3Y31.75%
EPS Next 5YN/A
Revenue Next Year18.52%
Revenue Next 2Y15.24%
Revenue Next 3Y12.19%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.80, the valuation of JEF can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of JEF is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.63, JEF is valued a bit cheaper.
JEF is valuated correctly with a Price/Forward Earnings ratio of 14.58.
JEF's Price/Forward Earnings is on the same level as the industry average.
JEF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JEF is valued cheaper than 84.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.16 |
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 31.75% in the coming years.
PEG (NY)0.44
PEG (5Y)1.22
EPS Next 2Y40.67%
EPS Next 3Y31.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, JEF has a reasonable but not impressive dividend return.
JEF's Dividend Yield is slightly below the industry average, which is at 10.00.
Compared to an average S&P500 Dividend Yield of 2.29, JEF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of JEF is nicely growing with an annual growth rate of 23.90%!
JEF has paid a dividend for at least 10 years, which is 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.
The dividend of JEF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37%
EPS Next 2Y40.67%
EPS Next 3Y31.75%
65.62
-1.13 (-1.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners72.8%
Inst Owner Change13.13%
Ins Owners21.09%
Ins Owner Change-3.58%
Market Cap13.52B
Analysts82.22
Price Target89.25 (36.01%)
Short Float %2.1%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)-1.69%
PT rev (3m)25.9%
EPS NQ rev (1m)-3.52%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)-3.57%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)2.06%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 14.58 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.33 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 12.16 |
EPS(TTM)3.01
EY4.59%
EPS(NY)4.5
Fwd EY6.86%
FCF(TTM)-2.3
FCFYN/A
OCF(TTM)-1.08
OCFYN/A
SpS63.4
BVpS49.28
TBVpS39.32
PEG (NY)0.44
PEG (5Y)1.22
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 | 0.44 |
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)126.32%
EPS 3Y-21.11%
EPS 5Y17.92%
EPS Q2Q%220.69%
EPS Next Y49.49%
EPS Next 2Y40.67%
EPS Next 3Y31.75%
EPS Next 5YN/A
Revenue 1Y (TTM)74.26%
Revenue growth 3Y5.57%
Revenue growth 5Y15.66%
Sales Q2Q%63.43%
Revenue Next Year18.52%
Revenue Next 2Y15.24%
Revenue Next 3Y12.19%
Revenue Next 5YN/A
EBIT growth 1Y197.88%
EBIT growth 3Y-24.35%
EBIT growth 5Y63.52%
EBIT Next Year54.3%
EBIT Next 3Y26.7%
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