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Jefferies (JEF)
NYSE:JEF
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Jefferies (JEF) AI Stock Analysis

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JEF

Jefferies

(NYSE:JEF)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$50.00
▼(-11.61% Downside)
Jefferies' overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The company's high leverage and negative cash flows are significant concerns, while the technical analysis indicates a bearish trend. The valuation offers some support with a reasonable P/E ratio and attractive dividend yield, but it is not sufficient to outweigh the other challenges.
Positive Factors
Gross Profit Margin
A strong gross profit margin indicates efficient cost management, allowing Jefferies to maintain profitability despite revenue fluctuations.
Asset Management Division
The asset management division contributes to earnings through management and performance fees, providing a stable revenue stream and diversification.
Diverse Revenue Streams
Jefferies' diverse revenue streams from various financial services reduce reliance on any single market segment, enhancing resilience.
Negative Factors
High Leverage
High leverage increases financial risk, especially in volatile markets, potentially impacting Jefferies' ability to invest in growth opportunities.
Negative Cash Flows
Negative cash flows indicate potential liquidity issues, which can constrain Jefferies' operational flexibility and investment capacity.
Operational Profitability Challenges
Negative EBIT margins reflect operational inefficiencies, which can hinder Jefferies' ability to generate sustainable profits over the long term.

Jefferies (JEF) vs. SPDR S&P 500 ETF (SPY)

Jefferies Business Overview & Revenue Model

Company DescriptionJefferies Financial Group Inc. (JEF) is a diversified financial services company headquartered in New York City, providing a range of investment banking, capital markets, asset management, and wealth management services. Established in 1962, the firm operates primarily in the United States, but also has a presence in various international markets. Jefferies serves a broad spectrum of clients, including corporations, institutions, and governments, offering expertise in equity and debt underwriting, mergers and acquisitions, and strategic advisory services.
How the Company Makes MoneyJefferies generates revenue through several key streams. The primary revenue sources are investment banking fees from advisory services, underwriting, and capital raising activities. The firm also earns commissions and trading revenues from its capital markets operations, which involve trading equities, fixed income, and derivatives. Additionally, Jefferies has a significant asset management division, which contributes to its earnings through management fees and performance fees on assets under management. The company's diverse client base and strong market presence allow it to capitalize on various financial transactions, while strategic partnerships and collaborations enhance its service offerings and market reach.

Jefferies Financial Statement Overview

Summary
Jefferies demonstrates strong profitability and operational efficiency, highlighted by high margins. However, challenges such as declining revenue growth and negative cash flow metrics indicate potential financial risks. The low reliance on debt is positive, but improving cash flow management is crucial for sustaining long-term growth.
Income Statement
65
Positive
Jefferies shows a solid gross profit margin of 59.40% and a net profit margin of 6.87% for TTM, indicating strong operational efficiency and profitability. The EBIT margin of 35.07% and EBITDA margin of 45.06% further emphasize effective cost management. However, the revenue growth rate shows a decline of 2.03% from the previous year, which could be a concern for future growth prospects.
Balance Sheet
55
Neutral
The debt-to-equity ratio stands at a low 0.11, reflecting limited financial leverage and reduced default risk. The return on equity (ROE) for TTM is 6.93%, showing moderate profitability relative to equity. The equity ratio is 14.53%, suggesting that Jefferies is not overly reliant on equity financing. However, the relatively low equity ratio may indicate some risk in financial stability.
Cash Flow
50
Neutral
Jefferies experienced a negative free cash flow in TTM, with a significant decline from the previous year. The operating cash flow to net income ratio is negative, indicating cash outflows exceeded income, which raises concerns about operational efficiency. On a positive note, the free cash flow to net income ratio is also negative, emphasizing the need for improved cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.41B10.52B7.23B7.53B9.46B6.90B
Gross Profit5.44B6.22B6.66B6.51B8.40B6.13B
EBITDA3.70B4.68B3.10B2.42B3.37B2.17B
Net Income646.93M743.38M277.69M785.45M1.67B775.24M
Balance Sheet
Total Assets67.28B64.36B57.91B51.06B56.11B53.12B
Cash, Cash Equivalents and Short-Term Investments11.26B12.15B8.53B9.70B10.76B9.06B
Total Debt34.22B20.36B16.09B13.72B11.42B19.83B
Total Liabilities56.90B54.13B48.10B40.63B45.38B43.53B
Stockholders Equity10.38B10.16B9.71B10.36B10.68B9.53B
Cash Flow
Free Cash Flow-2.78B-459.84M-1.93B1.58B1.42B1.90B
Operating Cash Flow-2.58B-209.25M-1.93B1.80B1.58B2.08B
Investing Cash Flow163.62M210.31M-12.20M-60.54M-409.87M-186.19M
Financing Cash Flow2.73B3.35B1.06B-2.84B994.29M-723.52M

Jefferies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price56.57
Price Trends
50DMA
61.56
Negative
100DMA
58.60
Negative
200DMA
58.00
Negative
Market Momentum
MACD
-2.08
Negative
RSI
46.91
Neutral
STOCH
89.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JEF, the sentiment is Negative. The current price of 56.57 is above the 20-day moving average (MA) of 56.40, below the 50-day MA of 61.56, and below the 200-day MA of 58.00, indicating a neutral trend. The MACD of -2.08 indicates Negative momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 89.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JEF.

Jefferies Risk Analysis

Jefferies disclosed 27 risk factors in its most recent earnings report. Jefferies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Jefferies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$5.72B27.9545.36%3.54%42.85%1398.33%
$12.52B29.4929.16%0.99%23.24%55.76%
$6.18B29.4817.91%1.61%10.46%50.47%
$14.00B33.5620.38%1.16%23.39%29.86%
$12.05B20.811.51%7.53%2.73%
$18.00B11.429.92%3.81%9.73%1.22%
$11.72B19.576.29%2.74%-5.41%25.28%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JEF
Jefferies
56.57
-6.80
-10.73%
EVR
Evercore Partners
330.30
68.29
26.06%
PIPR
Piper Sandler
351.19
68.05
24.03%
SF
Stifel Financial
119.06
16.05
15.58%
MC
Moelis
72.09
7.19
11.08%
HLI
Houlihan Lokey
202.25
37.67
22.89%

Jefferies Corporate Events

Business Operations and StrategyFinancial Disclosures
Jefferies Highlights Strong Performance at Investor Meeting
Positive
Oct 17, 2025

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.

The most recent analyst rating on (JEF) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Jefferies stock, see the JEF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Jefferies Highlights Growth at Investor Meeting
Positive
Oct 16, 2025

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.

The most recent analyst rating on (JEF) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Jefferies stock, see the JEF Stock Forecast page.

Business Operations and StrategyLegal Proceedings
Jefferies Addresses First Brands Bankruptcy Concerns
Neutral
Oct 14, 2025

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.

The most recent analyst rating on (JEF) stock is a Hold with a $55.00 price target. To see the full list of analyst forecasts on Jefferies stock, see the JEF Stock Forecast page.

Business Operations and StrategyLegal Proceedings
Jefferies Assesses Impact of First Brands Bankruptcy
Negative
Oct 8, 2025

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.

The most recent analyst rating on (JEF) stock is a Hold with a $62.00 price target. To see the full list of analyst forecasts on Jefferies stock, see the JEF Stock Forecast page.

Jefferies Financial Group Reports Strong Q3 2025 Results
Sep 30, 2025

Jefferies Financial Group Inc., a diversified financial services company, operates primarily in investment banking and capital markets, with a strong presence in asset management.

Business Operations and StrategyPrivate Placements and Financing
Jefferies Expands Alliance with SMBC, Boosts Equity Stake
Positive
Sep 19, 2025

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.

The most recent analyst rating on (JEF) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Jefferies stock, see the JEF Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 17, 2025