JEFFERIES FINANCIAL GROUP IN (JEF) Stock Fundamental Analysis
NYSE:JEF - New York Stock Exchange, Inc. - US47233W1099 - Common Stock - Currency: USD
Taking everything into account, JEF scores 4 out of 10 in our fundamental rating. JEF was compared to 230 industry peers in the Capital Markets industry. Both the profitability and financial health of JEF have multiple concerns. 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.
In multiple years JEF reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of JEF (1.14%) is worse than 64.78% of its industry peers.
With a Return On Equity value of 7.81%, JEF perfoms like the industry average, outperforming 42.61% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.42%, JEF is doing worse than 66.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for JEF is significantly below the industry average of 7.10%.
The last Return On Invested Capital (1.42%) for JEF is above the 3 year average (1.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 7.81% | ||
| ROIC | 1.42% |
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
JEF has a worse Profit Margin (6.14%) than 69.57% of its industry peers.
JEF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.91%, JEF is doing worse than 70.43% of the companies in the same industry.
In the last couple of years the Operating Margin of JEF has grown nicely.
JEF has a Gross Margin of 60.35%. This is in the better half of the industry: JEF outperforms 67.83% 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 | 8.91% | ||
| PM (TTM) | 6.14% | ||
| GM | 60.35% |
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
The number of shares outstanding for JEF has been reduced compared to 1 year ago.
JEF has less shares outstanding than it did 5 years ago.
JEF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that JEF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of JEF (0.34) is worse than 70.00% of its industry peers.
A Debt/Equity ratio of 3.40 is on the high side and indicates that JEF has dependencies on debt financing.
JEF's Debt to Equity ratio of 3.40 is on the low side compared to the rest of the industry. JEF is outperformed by 81.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
JEF has a Current Ratio of 0.68. This is a bad value and indicates that JEF is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.68, JEF is not doing good in the industry: 68.26% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that JEF may have some problems paying its short term obligations.
JEF's Quick ratio of 0.68 is on the low side compared to the rest of the industry. JEF is outperformed by 68.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 95.27% over the past year.
The Earnings Per Share has been growing by 17.92% on average over the past years. This is quite good.
JEF shows a strong growth in Revenue. In the last year, the Revenue has grown by 57.47%.
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)57.47%
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 24.92% yearly.
JEF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.86% yearly.
EPS Next Y-9.15%
EPS Next 2Y21.71%
EPS Next 3Y24.92%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.05, which indicates a rather expensive current valuation of JEF.
JEF's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.22, JEF is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of JEF can be described as reasonable.
Based on the Price/Forward Earnings ratio, JEF is valued a bit cheaper than the industry average as 63.91% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.86. JEF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
JEF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. JEF is cheaper than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.63 |
4.3 Compensation for Growth
A more expensive valuation may be justified as JEF's earnings are expected to grow with 24.92% in the coming years.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y21.71%
EPS Next 3Y24.92%
5. Dividend
5.1 Amount
JEF has a Yearly Dividend Yield of 3.42%.
The stock price of JEF dropped by -35.92% 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 8.35, JEF has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, JEF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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 40.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of JEF is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP40.87%
EPS Next 2Y21.71%
EPS Next 3Y24.92%
49.27
+2.11 (+4.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners72.8%
Inst Owner Change-0.57%
Ins Owners21.09%
Ins Owner Change-3.06%
Market Cap10.16B
Analysts77.78
Price Target58.14 (18%)
Short Float %2.03%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend1.46
Dividend Growth(5Y)23.9%
DP40.87%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.25%
Min EPS beat(2)-39.96%
Max EPS beat(2)1.46%
EPS beat(4)2
Avg EPS beat(4)-10.66%
Min EPS beat(4)-39.96%
Max EPS beat(4)1.46%
EPS beat(8)3
Avg EPS beat(8)-12.52%
EPS beat(12)5
Avg EPS beat(12)-3.29%
EPS beat(16)8
Avg EPS beat(16)4.97%
Revenue beat(2)1
Avg Revenue beat(2)-3.08%
Min Revenue beat(2)-15.35%
Max Revenue beat(2)9.19%
Revenue beat(4)2
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-15.35%
Max Revenue beat(4)9.19%
Revenue beat(8)3
Avg Revenue beat(8)-0.51%
Revenue beat(12)7
Avg Revenue beat(12)13.21%
Revenue beat(16)11
Avg Revenue beat(16)15.42%
PT rev (1m)-30.06%
PT rev (3m)-35.96%
EPS NQ rev (1m)-35.56%
EPS NQ rev (3m)-45.41%
EPS NY rev (1m)-31.89%
EPS NY rev (3m)-41.4%
Revenue NQ rev (1m)-8.49%
Revenue NQ rev (3m)-10.46%
Revenue NY rev (1m)-13.36%
Revenue NY rev (3m)-14.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.78 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 11.63 |
EPS(TTM)2.89
EY5.87%
EPS(NY)4.46
Fwd EY9.05%
FCF(TTM)-8.6
FCFYN/A
OCF(TTM)-7.62
OCFYN/A
SpS62.97
BVpS49.47
TBVpS39.59
PEG (NY)N/A
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 7.81% | ||
| ROCE | 2.8% | ||
| ROIC | 1.42% | ||
| ROICexc | 1.75% | ||
| ROICexgc | 1.98% | ||
| OM | 8.91% | ||
| PM (TTM) | 6.14% | ||
| GM | 60.35% | ||
| 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 Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 25.83 | ||
| Cap/Depr | 109.26% | ||
| Cap/Sales | 1.57% | ||
| Interest Coverage | 0.34 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.34 |
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 Y-9.15%
EPS Next 2Y21.71%
EPS Next 3Y24.92%
EPS Next 5YN/A
Revenue 1Y (TTM)57.47%
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 1Y156.09%
EBIT growth 3Y-24.35%
EBIT growth 5Y63.52%
EBIT Next Year3.77%
EBIT Next 3Y25.32%
EBIT Next 5YN/A
FCF growth 1Y-281.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-230.77%
OCF growth 3YN/A
OCF growth 5YN/A