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 3 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. JEF has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, JEF is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year JEF was profitable.
In the past year JEF has reported a negative cash flow from operations.
In the past 5 years JEF has always been profitable.
In multiple years JEF reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.14%, JEF is doing worse than 64.38% of the companies in the same industry.
JEF has a Return On Equity (7.81%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.42%, JEF is doing worse than 68.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JEF is significantly below the industry average of 7.84%.
The 3 year average ROIC (1.30%) for JEF is below the current ROIC(1.42%), indicating increased profibility in the last year.
| 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's Profit Margin of 6.14% is on the low side compared to the rest of the industry. JEF is outperformed by 66.52% of its industry peers.
JEF's Profit Margin has declined in the last couple of years.
JEF has a worse Operating Margin (8.91%) than 71.67% of its industry peers.
In the last couple of years the Operating Margin of JEF has grown nicely.
Looking at the Gross Margin, with a value of 60.35%, JEF is in the better half of the industry, outperforming 67.81% of the companies in the same industry.
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
JEF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, JEF has less shares outstanding
The debt/assets ratio for JEF is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.36, we must say that JEF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of JEF (0.36) is worse than 69.96% 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 has a Debt to Equity ratio of 3.40. This is amonst the worse of the industry: JEF underperforms 83.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.68 indicates that JEF may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, JEF is doing worse than 69.53% of the companies in the same industry.
JEF has a Quick 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 Quick ratio value of 0.68, JEF is not doing good in the industry: 69.10% of the companies in the same industry are doing better.
| 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 45.65% 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 40.23%.
Measured over the past years, JEF shows a quite strong growth in Revenue. The Revenue has been growing by 15.66% on average per year.
EPS 1Y (TTM)45.65%
EPS 3Y-21.11%
EPS 5Y17.92%
EPS Q2Q%-32.81%
Revenue 1Y (TTM)40.23%
Revenue growth 3Y5.57%
Revenue growth 5Y15.66%
Sales Q2Q%-1.33%
3.2 Future
Based on estimates for the next years, JEF will show a small growth in Earnings Per Share. The EPS will grow by 7.00% on average per year.
Based on estimates for the next years, JEF will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-19.36%
EPS Next 2Y16.91%
EPS Next 3Y21.69%
EPS Next 5Y7%
Revenue Next Year-2.2%
Revenue Next 2Y6%
Revenue Next 3Y8.52%
Revenue Next 5Y2.25%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 20.80, the valuation of JEF can be described as rather expensive.
JEF's Price/Earnings is on the same level as the industry average.
JEF is valuated rather cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.55, which indicates a correct valuation of JEF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JEF is on the same level as its industry peers.
JEF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
83.69% of the companies in the same industry are more expensive than JEF, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
JEF's earnings are expected to grow with 21.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y16.91%
EPS Next 3Y21.69%
5. Dividend
5.1 Amount
JEF has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.00, JEF has a dividend in line with its industry peers.
JEF's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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 40.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
JEF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.87%
EPS Next 2Y16.91%
EPS Next 3Y21.69%
55.75
-0.34 (-0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners66.73%
Inst Owner Change-5.58%
Ins Owners21.28%
Ins Owner Change0.67%
Market Cap11.50B
Analysts75.56
Price Target59.84 (7.34%)
Short Float %2.2%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)2.92%
PT rev (3m)-28.02%
EPS NQ rev (1m)4.08%
EPS NQ rev (3m)-43.33%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-39.54%
Revenue NQ rev (1m)-4.42%
Revenue NQ rev (3m)-15.25%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-15.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 13.55 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.13 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 12.94 |
EPS(TTM)2.68
EY4.81%
EPS(NY)4.11
Fwd EY7.38%
FCF(TTM)-8.6
FCFYN/A
OCF(TTM)-7.62
OCFYN/A
SpS62.97
BVpS49.47
TBVpS39.59
PEG (NY)N/A
PEG (5Y)1.16
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 | 0.36 |
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)45.65%
EPS 3Y-21.11%
EPS 5Y17.92%
EPS Q2Q%-32.81%
EPS Next Y-19.36%
EPS Next 2Y16.91%
EPS Next 3Y21.69%
EPS Next 5Y7%
Revenue 1Y (TTM)40.23%
Revenue growth 3Y5.57%
Revenue growth 5Y15.66%
Sales Q2Q%-1.33%
Revenue Next Year-2.2%
Revenue Next 2Y6%
Revenue Next 3Y8.52%
Revenue Next 5Y2.25%
EBIT growth 1Y156.09%
EBIT growth 3Y-24.35%
EBIT growth 5Y63.52%
EBIT Next Year-13.07%
EBIT Next 3Y23.17%
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