Jefferies Financial Group Inc. (NYSE: JEF)

Sector: Financial Services Industry: Capital Markets CIK: 0000096223
Market Cap 12.69 Bn
P/B 1.20
P/E 20.12
P/S 1.73
ROIC (Qtr) 1.32
Div Yield % 2.71
Rev 1y % (Qtr) 5.74
Total Debt (Qtr) 46.62 Bn
Debt/Equity (Qtr) 4.41

About

Jefferies Financial Group Inc., commonly known as Jefferies, operates as a global full-service investment banking and capital markets firm in various countries, including the United States, the United Kingdom, and Hong Kong. Established in 1962, the company has built a reputation for providing a wide range of financial services to its clients, such as investment banking, equities, fixed income, and asset management. Jefferies operates in two primary business segments: Investment Banking and Capital Markets and Asset Management. The Investment Banking...

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Price action

Investment thesis

Bull case

  • Operating cash flow of (1.50B) provides exceptional 52.74x coverage of minority interest expenses (28.43M), showing strong core operations.
  • Strong free cash flow of (1.71B) provides 14.44x coverage of acquisition spending (118.18M), indicating disciplined M&A strategy.
  • Free cash flow of (1.71B) provides excellent 4.56x coverage of dividends (374.13M), indicating sustainable shareholder returns.
  • Retained earnings of 8.57B represent substantial 0.81x of equity 10.57B, indicating strong internal capital generation.
  • Retained earnings of 8.57B provide strong 4.67x coverage of intangibles 1.84B, indicating quality earnings retention.

Bear case

  • Cash reserves of 14.96B provide limited coverage of acquisition spending of (118.18M), which is -126.60x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (1.50B) shows concerning coverage of stock compensation expenses of 88.23M, with a -17 ratio indicating potential earnings quality issues.
  • Free cash flow of (1.71B) provides weak coverage of capital expenditures of 207.47M, with a -8.23 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (1.50B) provides minimal -8.12x coverage of tax expenses of 184.57M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of (1.50B) barely covers operating expenses of 786.25M with a -1.91 ratio, suggesting thin operational efficiency margins and limited flexibility.

Product and Service Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Capital Markets
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GS Goldman Sachs Group Inc 433.97 Bn 57.26 12.78 911.32 Bn
2 MS Morgan Stanley 314.55 Bn 23.99 5.50 353.12 Bn
3 SCHW Schwab Charles Corp 194.70 Bn 30.37 9.37 27.59 Bn
4 BMNR Bitmine Immersion Technologies, Inc. 148.85 Bn -30.55 20,710.58 0.00 Bn
5 HOOD Robinhood Markets, Inc. 72.97 Bn 33.26 17.36 0.00 Bn
6 LPLA LPL Financial Holdings Inc. 30.55 Bn 68.41 5.00 7.52 Bn
7 IBKR Interactive Brokers Group, Inc. 28.46 Bn 103.89 11.54 28.43 Bn
8 CRCL Circle Internet Group, Inc. 27.14 Bn 172.85 16.04 0.15 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.59 1.29
EV to Cash from Ops. EV/CFO -30.08 -15.44
EV to Debt EV to Debt 0.97 18.96
EV to EBIT EV/EBIT 50.39 32.20
EV to EBITDA EV/EBITDA 42.03 45.42
EV to Free Cash Flow [EV/FCF] EV/FCF -26.42 9.12
EV to Market Cap EV to Market Cap 3.55 1.11
EV to Revenue EV/Rev 6.14 300.60
Price to Book Value [P/B] P/B 1.20 4.37
Price to Earnings [P/E] P/E 20.12 16.68
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.39 -0.92
Dividend Payout Ratio % Div Payout % (Qtr) 54.60 7.75
Dividend per Basic Share Div per Share (Qtr) 1.60 0.70
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -20.16 -8.99
Interest Coverage Int. cover (Qtr) 0.00 -165.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 17.21 -12,127.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.61 1,715.17
Dividend Growth (1y) % Div 1y % (Qtr) 23.08 4.17
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -4.43 -2,046.50
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -10.84 -3,960.13
EBIT Growth (1y) % EBIT 1y % (Qtr) -13.65 728.13
EBT Growth (1y) % EBT 1y % (Qtr) -13.65 838.81
EPS Growth (1y) % EPS 1y % (Qtr) -4.87 26.25
FCF Growth (1y) % FCF 1y % (Qtr) -271.21 -3,406.06
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.19 54.45
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.10 0.42
Cash Payout Ratio Cash Payout (Qtr) -0.27 -0.09
Cash Ratio Cash Ratio (Qtr) 0.00 1.46
Current Ratio Curr Ratio (Qtr) 0.00 2.98
Debt to Equity Ratio Debt/Equity (Qtr) 4.41 1.50
Interest Cover Ratio Int Coverage (Qtr) 0.00 -165.38
Times Interest Earned Times Interest Earned (Qtr) 0.00 -165.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.90 -959.56
EBIT Margin % EBIT Margin % (Qtr) 12.19 -1,006.04
EBT Margin % EBT Margin % (Qtr) 12.19 -981.88
Gross Margin % Gross Margin % (Qtr) 90.70 53.03
Net Profit Margin % Net Margin % (Qtr) 8.60 -988.00