Jefferies (JEF) AI Stock Analysis

• Market Cap: $12.20B
• Dividend Yield: 2.71%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.57
• Revenue Growth: -5.41%
• EPS Growth: 25.28%
• Country: US
• Employees: 7,701
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.01
• Shares Outstanding: 206,280,290
• 10 Day Avg. Volume: 1,206,250
• 30 Day Avg. Volume: 1,713,268
• PEG Ratio: 0.13
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 1.63
• P/FCF Ratio: -37.36
• Enterprise Value/Market Cap: 3.04
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 6.65
• Enterprise Value/Ebitda: 9.87
• 1Y Price Target: $72.00
• Price Target Upside: 21.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $62.00 ▲(4.87% Upside)

Jefferies' overall stock score is driven by strong technical indicators and positive corporate events, which are offset by financial challenges. The company's strategic partnerships and market position are strengths, but high leverage and weak cash flow management present risks. The valuation is fair, providing some stability in the current market environment.

Positive Factors

Diversified Revenue Streams

Jefferies' diversified revenue streams provide resilience against market fluctuations, supporting long-term stability and growth.

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, supporting sustainable profitability.

Presence in International Markets

International presence allows Jefferies to tap into global opportunities, enhancing growth prospects and competitive positioning.

Negative Factors

High Leverage

High leverage increases financial risk, potentially impacting stability and flexibility, especially in volatile markets.

Weak Cash Flow Management

Weak cash flow management can hinder investment and operational capabilities, affecting long-term financial health.

Pressure on Profitability

Decreasing net profit margins indicate challenges in maintaining profitability, which may affect future earnings potential.

Jefferies Business Overview & Revenue Model

Company Description

Jefferies Financial Group Inc. engages in the investment banking and capital markets, and asset management businesses in the Americas, Europe, the Middle East, Africa, and Asia. The company operates in Investment Banking and Capital Markets, Asset Management, Merchant Banking, and Corporate segments. It provides investment banking, advisory services with respect to mergers or acquisitions, restructurings or recapitalizations and private capital advisory transactions; equity and debt underwriting; and corporate lending. In addition, the company offers financing, securities lending, and other prime brokerage services; equities research and finance; and wealth management services. Further, it provides clients with sales and trading of investment grade corporate bonds, U.S. and European government and agency securities, municipal bonds, mortgage-backed and asset-backed securities, leveraged loans, consumer loans, high yield and distressed securities, emerging markets debt, interest rate, and credit derivative products, as well as foreign exchange trade execution and securitization; and manages, invests in, and provides services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.

How the Company Makes Money

Jefferies generates revenue through multiple key streams. The Investment Banking segment is a significant contributor, earning fees from advisory services on mergers and acquisitions, underwriting securities, and raising capital for clients. The Equities and Fixed Income segments earn commissions and trading revenues from executing trades for institutional clients. Additionally, the Asset Management division generates management fees and performance-based fees from managing investment funds. Jefferies has established significant partnerships with various financial institutions and corporations, enhancing its market presence and access to clients, which in turn bolsters its overall earnings.

Jefferies Financial Statement Overview

Summary

Jefferies faces a challenging financial landscape with mixed performance across its financial statements. Revenue growth is present, but profitability and operational efficiency are under pressure, as evidenced by negative EBIT margins. The balance sheet shows high leverage, raising concerns about financial stability. Cash flow management is weak, with negative cash flows indicating potential liquidity issues.

Income Statement

Jefferies shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight revenue growth of 2.997%, but the company faces challenges with a negative EBIT margin, suggesting operational inefficiencies. The gross profit margin remains healthy at 52.4%, yet the net profit margin has decreased to 6.6%, indicating pressure on profitability. Historical data shows fluctuating revenue growth and margins, highlighting potential volatility in earnings.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio, indicating potential financial risk. The TTM data shows a concerning debt-to-equity ratio of 0.0 due to minimal equity, which could signal financial distress. Return on equity is modest at 9.3%, reflecting limited profitability relative to shareholder investment. The equity ratio is low, suggesting reliance on debt financing, which may pose risks in volatile market conditions.

Cash Flow

Jefferies' cash flow statement highlights significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, indicating declining cash generation capabilities. The operating cash flow to net income ratio is zero, reflecting inefficiencies in converting income into cash. The free cash flow to net income ratio is slightly positive, suggesting some ability to generate cash relative to net income, but overall cash flow management appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.73B	10.52B	7.44B	7.15B	8.95B	6.96B
Gross Profit	5.57B	6.22B	4.51B	3.77B	4.62B	3.33B
EBITDA	3.75B	4.68B	3.21B	2.42B	3.34B	2.17B
Net Income	727.60M	743.38M	277.69M	785.45M	1.67B	775.24M
Balance Sheet
Total Assets	69.32B	64.36B	57.91B	51.06B	56.11B	53.12B
Cash, Cash Equivalents and Short-Term Investments	11.46B	12.15B	8.53B	9.70B	10.76B	9.06B
Total Debt	23.69B	20.36B	16.09B	13.72B	11.42B	19.83B
Total Liabilities	58.82B	54.13B	48.10B	40.63B	45.38B	43.53B
Stockholders Equity	10.44B	10.16B	9.71B	10.36B	10.68B	9.53B
Cash Flow
Free Cash Flow	-1.13B	-459.84M	-1.93B	1.58B	1.42B	1.90B
Operating Cash Flow	-909.34M	-209.25M	-1.93B	1.80B	1.58B	2.08B
Investing Cash Flow	-1.28B	210.31M	-12.20M	-60.54M	-409.87M	-186.19M
Financing Cash Flow	3.22B	3.35B	1.06B	-2.84B	994.29M	-723.52M

Jefferies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JEF, the sentiment is Positive. The current price of 59.12 is above the 20-day moving average (MA) of 56.16, above the 50-day MA of 56.24, and above the 200-day MA of 55.61, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 60.27 is Neutral, neither overbought nor oversold. The STOCH value of 84.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JEF.

Jefferies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SF	77 Outperform	$12.86B	22.29	11.73%	1.46%	7.54%	2.73%
EVR	76 Outperform	$12.83B	26.45	31.39%	1.00%	27.00%	63.47%
MC	74 Outperform	$5.53B	22.99	51.98%	3.79%	51.19%	456.59%
HLI	70 Outperform	$12.59B	29.01	20.29%	1.32%	20.99%	25.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PIPR	67 Neutral	$5.77B	24.59	19.30%	1.62%	12.77%	36.43%
JEF	61 Neutral	$12.20B	20.37	6.29%	2.71%	-5.41%	25.28%

Jefferies Corporate Events

Jefferies Highlights Strong Performance at Investor Meeting

On October 16, 2025, Jefferies Financial Group held its Investor Meeting, highlighting its strong operational performance and recent record revenues. Despite challenges related to the bankruptcy of First Brands, Jefferies emphasized its resilience and commitment to recovering owed funds. The company is optimistic about its future, citing strategic partnerships and a conducive market environment as key drivers for growth. Jefferies’ leadership underscored the importance of its culture and client relationships, positioning the firm as a critical partner in the investment banking sector.

Jefferies Highlights Growth at Investor Meeting

On October 16, 2025, Jefferies Financial Group Inc. held an investor meeting, where they presented their latest investor presentation. The company highlighted its exceptional growth opportunities and strong market position, driven by a favorable economic environment and strategic partnerships. Jefferies reported record revenues in investment banking and equities, and emphasized its ongoing efforts to expand product offerings, enhance technology, and recruit top talent. The company also announced an expansion of its alliance with SMBC, aiming to increase its market share in Japanese equities and ECM, supported by new credit facilities.

Jefferies Addresses First Brands Bankruptcy Concerns

On October 12, 2025, Jefferies Financial Group addressed concerns regarding its exposure to the bankruptcy of First Brands Group. Despite potential financial losses and legal costs related to its indirect investments in First Brands, Jefferies emphasized its strong financial position, with substantial equity and liquidity, and highlighted its recent business momentum and strategic partnership expansion with SMBC. The company assured stakeholders that any losses from the First Brands situation are manageable and do not threaten its financial stability.

Jefferies Assesses Impact of First Brands Bankruptcy

On October 8, 2025, Jefferies Financial Group Inc. provided an update regarding the bankruptcy filing of First Brands Group, an aftermarket auto parts manufacturer. First Brands filed for Chapter 11 on September 29, 2025, affecting Point Bonita Capital, a division of Leucadia Asset Management, which manages a $3 billion trade-finance portfolio including $715 million in receivables from First Brands. Jefferies is working to assess the impact on Point Bonita and protect its interests. Additionally, Apex Credit Partners, a Jefferies subsidiary, manages CLOs with $4.2 billion in assets, including $48 million in First Brands’ term loans, representing about 1% of Apex’s managed CLO assets.

Jefferies Expands Alliance with SMBC, Boosts Equity Stake

On September 19, 2025, Jefferies Financial Group Inc. and Sumitomo Mitsui Banking Corporation (SMBC) announced a significant expansion of their Global Strategic Alliance, initially formed in 2021 and expanded in 2023. This expansion includes combining their Japanese equities and ECM businesses, expanding joint coverage of larger sponsors, and implementing joint origination, underwriting, and execution of syndicated leveraged finance in EMEA. SMBC plans to increase its equity ownership in Jefferies to up to 20% and provide approximately $2.5 billion in new credit facilities to support Jefferies, facilitating collaboration efforts and enhancing their combined capabilities in key areas.