📊 JEF Key Takeaways
Is Jefferies Financial Group Inc. (JEF) a Good Investment?
Jefferies demonstrates paradoxical fundamentals: exceptional 95% revenue growth masks severe operational deterioration evidenced by negative free cash flow of -$250.7M and critically unsustainable interest coverage of 0.3x. Net income declined 7.5% YoY despite surging revenues, indicating the company is not converting growth into profits or cash, while leverage of 1.71x compounds refinancing risk in this capital structure.
Jefferies' 95.1% revenue growth did not translate into earnings growth, as net income declined 7.5% and margins remained modest, indicating weak growth quality. Strong liquidity and a sizable equity base provide resilience, but negative free cash flow, low returns on assets and equity, and high leverage limit the fundamental outlook.
Jefferies Financial Group Inc. Key Strengths (JEF)
- Exceptional revenue growth of 95.1% YoY indicates strong market share gains
- Substantial cash reserves of $14.3B and solid liquidity ratios (1.97x current, 1.73x quick) provide near-term runway
- Large asset base of $79.5B demonstrates established market presence in broker-dealer sector
- Revenue increased 95.1% year over year
- Cash and equivalents of $14.31B support liquidity
- Current and quick ratios of 1.97x and 1.73x indicate solid near-term coverage
JEF Stock Risks: Jefferies Financial Group Inc. Investment Risks
- Negative operating cash flow (-$137.9M) and free cash flow (-$250.7M) signal company is burning cash despite high revenues, unsustainable trajectory
- Interest coverage ratio of 0.3x is critically low; operating income cannot cover debt servicing obligations, indicating financial distress
- Net income declined 7.5% YoY despite 95% revenue growth, revealing deteriorating profitability and potential one-time revenue recognition issues
- Very low returns (ROE 3.9%, ROA 0.5%) demonstrate poor capital efficiency and deployment
- Debt-to-equity of 1.71x combined with weak coverage ratios creates refinancing and solvency risk
- Net income declined 7.5% despite substantial revenue growth
- Free cash flow was negative $250.73M and operating cash flow was negative $137.86M
- Debt-to-equity of 1.71x and 0.3x interest coverage indicate significant financial leverage
Key Metrics to Watch
- Operating cash flow trend toward positive territory and sustainable free cash flow generation
- Interest coverage ratio improvement to >1.5x minimum; debt service capacity and refinancing needs
- Net income margin recovery and cost structure normalization to align with revenue growth
- Net income growth and operating margin
- Operating cash flow and free cash flow
Jefferies Financial Group Inc. (JEF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Jefferies Financial Group Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
JEF Profit Margin, ROE & Profitability Analysis
JEF vs Finance Sector: How Jefferies Financial Group Inc. Compares
How Jefferies Financial Group Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Jefferies Financial Group Inc. Stock Overvalued? JEF Valuation Analysis 2026
Based on fundamental analysis, Jefferies Financial Group Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Jefferies Financial Group Inc. Balance Sheet: JEF Debt, Cash & Liquidity
JEF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Jefferies Financial Group Inc.'s revenue has remained relatively flat over the 5-year period, with a 10% decline. The most recent EPS of $1.10 reflects profitable operations.
JEF Revenue Growth, EPS Growth & YoY Performance
JEF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.2B | $91.4M | $0.40 |
| Q1 2026 | $1.1B | $136.8M | $0.57 |
| Q3 2025 | $1.3B | $181.0M | $0.75 |
| Q2 2025 | $1.1B | $91.4M | $0.40 |
| Q1 2025 | $1.0B | $136.8M | $0.57 |
| Q3 2024 | $845.0M | $53.9M | $0.22 |
| Q2 2024 | $753.4M | $8.7M | $0.05 |
| Q1 2024 | $775.0M | $129.3M | $0.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Jefferies Financial Group Inc. Dividends, Buybacks & Capital Allocation
JEF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Jefferies Financial Group Inc. (CIK: 0000096223)
📋 Recent SEC Filings
❓ Frequently Asked Questions about JEF
What is the AI rating for JEF?
Jefferies Financial Group Inc. (JEF) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JEF's key strengths?
Claude: Exceptional revenue growth of 95.1% YoY indicates strong market share gains. Substantial cash reserves of $14.3B and solid liquidity ratios (1.97x current, 1.73x quick) provide near-term runway. ChatGPT: Revenue increased 95.1% year over year. Cash and equivalents of $14.31B support liquidity.
What are the risks of investing in JEF?
Claude: Negative operating cash flow (-$137.9M) and free cash flow (-$250.7M) signal company is burning cash despite high revenues, unsustainable trajectory. Interest coverage ratio of 0.3x is critically low; operating income cannot cover debt servicing obligations, indicating financial distress. ChatGPT: Net income declined 7.5% despite substantial revenue growth. Free cash flow was negative $250.73M and operating cash flow was negative $137.86M.
What is JEF's revenue and growth?
Jefferies Financial Group Inc. reported revenue of $6.0B.
Does JEF pay dividends?
Jefferies Financial Group Inc. pays dividends, with $184.6M distributed to shareholders in the trailing twelve months.
Where can I find JEF SEC filings?
Official SEC filings for Jefferies Financial Group Inc. (CIK: 0000096223) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is JEF's EPS?
Jefferies Financial Group Inc. has a diluted EPS of $0.70.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is JEF's fundamental grade?
Based on our AI fundamental analysis in August 2026, Jefferies Financial Group Inc. has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is JEF stock overvalued or undervalued?
Valuation metrics for JEF: ROE of 3.9% (sector avg: 12%), net margin of 6.8% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is JEF's AI grade for 2026?
Our dual AI analysis gives Jefferies Financial Group Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is JEF's free cash flow?
Jefferies Financial Group Inc.'s operating cash flow is $-137.9M, with capital expenditures of $112.9M. FCF margin is -4.2%.
How does JEF compare to other Finance stocks?
Vs Finance sector averages: Net margin 6.8% (avg: 25%), ROE 3.9% (avg: 12%), current ratio 1.97 (avg: 1.2).
Is Jefferies Financial Group Inc. carrying too much debt?
JEF has a debt-to-equity ratio of 1.71x, which is above the Finance sector average of 2x. However, the current ratio of 1.97 suggests adequate short-term liquidity.