JEFFERIES FINANCIAL GROUP IN (JEF) Stock Fundamental Analysis
NYSE:JEF - US47233W1099 - Common Stock
63.5 USD
-1.47 (-2.26%)
63.9256 USD
+0.43 (+0.67%)
Taking everything into account, JEF scores 3 out of 10 in our fundamental rating. JEF was compared to 239 industry peers in the Capital Markets industry. Both the profitability and financial health of JEF have multiple concerns. JEF is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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's Return On Assets of 0.88% is on the low side compared to the rest of the industry. JEF is outperformed by 65.69% of its industry peers.
JEF's Return On Equity of 5.72% is in line compared to the rest of the industry. JEF outperforms 41.42% of its industry peers.
JEF has a worse Return On Invested Capital (1.09%) than 69.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JEF is significantly below the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 5.72% | ||
| ROIC | 1.09% |
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
With a Profit Margin value of 5.66%, JEF is not doing good in the industry: 65.27% of the companies in the same industry are doing better.
JEF's Profit Margin has declined in the last couple of years.
JEF has a worse Operating Margin (8.10%) than 69.04% of its industry peers.
In the last couple of years the Operating Margin of JEF has grown nicely.
JEF has a Gross Margin of 59.51%. This is in the better half of the industry: JEF outperforms 69.04% of its industry peers.
JEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 5.66% | ||
| GM | 59.51% |
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
The number of shares outstanding for JEF has been reduced compared to 5 years ago.
JEF has a worse debt/assets ratio than last year.
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.
JEF's Altman-Z score of 0.36 is on the low side compared to the rest of the industry. JEF is outperformed by 68.20% of its industry peers.
JEF has a Debt/Equity ratio of 3.27. This is a high value indicating a heavy dependency on external financing.
JEF has a worse Debt to Equity ratio (3.27) than 83.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.69 indicates that JEF may have some problems paying its short term obligations.
JEF has a worse Current ratio (0.69) than 67.78% of its industry peers.
JEF has a Quick Ratio of 0.69. 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 (0.69) is worse than 67.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
JEF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.02%, which is quite impressive.
The Earnings Per Share has been growing by 17.92% on average over the past years. This is quite good.
JEF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.67%.
The Revenue has been growing by 15.66% on average over the past years. This is quite good.
EPS 1Y (TTM)44.02%
EPS 3Y-21.11%
EPS 5Y17.92%
EPS Q2Q%-37.5%
Revenue 1Y (TTM)-10.67%
Revenue growth 3Y5.57%
Revenue growth 5Y15.66%
Sales Q2Q%-1.33%
3.2 Future
The Earnings Per Share is expected to grow by 6.43% on average over the next years.
JEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.71% yearly.
EPS Next Y-24.5%
EPS Next 2Y11.84%
EPS Next 3Y15.43%
EPS Next 5Y6.43%
Revenue Next Year-1.15%
Revenue Next 2Y5.46%
Revenue Next 3Y7.24%
Revenue Next 5Y1.71%
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
A Price/Earnings ratio of 23.96 indicates a rather expensive valuation of JEF.
61.51% of the companies in the same industry are cheaper than JEF, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.06. JEF is around the same levels.
The Price/Forward Earnings ratio is 16.87, which indicates a correct valuation of JEF.
The rest of the industry has a similar Price/Forward Earnings ratio as JEF.
When comparing the Price/Forward Earnings ratio of JEF to the average of the S&P500 Index (22.69), we can say JEF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
69.87% 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 | 23.37 |
4.3 Compensation for Growth
JEF's earnings are expected to grow with 15.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y11.84%
EPS Next 3Y15.43%
5. Dividend
5.1 Amount
JEF has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.91, JEF has a dividend in line with its industry peers.
JEF's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
On average, the dividend of JEF grows each year by 23.90%, which is quite nice.
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 59.41% 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.
DP59.41%
EPS Next 2Y11.84%
EPS Next 3Y15.43%
63.5
-1.47 (-2.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners66.58%
Inst Owner Change-0.15%
Ins Owners21.28%
Ins Owner Change1.74%
Market Cap13.10B
Analysts75.56
Price Target66.64 (4.94%)
Short Float %3.25%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend1.46
Dividend Growth(5Y)23.9%
DP59.41%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.98%
Min EPS beat(2)-39.96%
Max EPS beat(2)-9.99%
EPS beat(4)1
Avg EPS beat(4)-13.17%
Min EPS beat(4)-39.96%
Max EPS beat(4)1.46%
EPS beat(8)2
Avg EPS beat(8)-13.99%
EPS beat(12)5
Avg EPS beat(12)-3.2%
EPS beat(16)7
Avg EPS beat(16)1.65%
Revenue beat(2)1
Avg Revenue beat(2)-5.89%
Min Revenue beat(2)-15.35%
Max Revenue beat(2)3.58%
Revenue beat(4)2
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-15.35%
Max Revenue beat(4)9.19%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)7
Avg Revenue beat(12)11.28%
Revenue beat(16)11
Avg Revenue beat(16)13.39%
PT rev (1m)0%
PT rev (3m)14.62%
EPS NQ rev (1m)5.62%
EPS NQ rev (3m)-15.88%
EPS NY rev (1m)-5.56%
EPS NY rev (3m)-7.53%
Revenue NQ rev (1m)2.82%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 16.87 | ||
| P/S | 1.26 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.27 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 23.37 |
EPS(TTM)2.65
EY4.17%
EPS(NY)3.76
Fwd EY5.93%
FCF(TTM)-13.48
FCFYN/A
OCF(TTM)-12.52
OCFYN/A
SpS50.48
BVpS49.96
TBVpS39.97
PEG (NY)N/A
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 5.72% | ||
| ROCE | 2.1% | ||
| ROIC | 1.09% | ||
| ROICexc | 1.26% | ||
| ROICexgc | 1.41% | ||
| OM | 8.1% | ||
| PM (TTM) | 5.66% | ||
| GM | 59.51% | ||
| 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)1.62%
ROICexc(5y)2.46%
ROICexgc(3y)1.89%
ROICexgc(5y)2.82%
ROCE(3y)2.44%
ROCE(5y)3.91%
ROICexcg growth 3Y-29.79%
ROICexcg growth 5Y54.76%
ROICexc growth 3Y-29.71%
ROICexc growth 5Y54.78%
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-Score4
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 32.49 | ||
| Cap/Depr | 103.32% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 0.24 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.36 |
F-Score4
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)44.02%
EPS 3Y-21.11%
EPS 5Y17.92%
EPS Q2Q%-37.5%
EPS Next Y-24.5%
EPS Next 2Y11.84%
EPS Next 3Y15.43%
EPS Next 5Y6.43%
Revenue 1Y (TTM)-10.67%
Revenue growth 3Y5.57%
Revenue growth 5Y15.66%
Sales Q2Q%-1.33%
Revenue Next Year-1.15%
Revenue Next 2Y5.46%
Revenue Next 3Y7.24%
Revenue Next 5Y1.71%
EBIT growth 1Y-3.54%
EBIT growth 3Y-24.35%
EBIT growth 5Y63.52%
EBIT Next Year-7.62%
EBIT Next 3Y12.64%
EBIT Next 5Y8.34%
FCF growth 1Y-1463.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-755.96%
OCF growth 3YN/A
OCF growth 5YN/A