Jefferson Capital, Inc. (JCAP) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: 1.37%
• Average Volume (3M): 234.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 58,266,308
• 10 Day Avg. Volume: 177,743
• 30 Day Avg. Volume: 234,157
• PEG Ratio: -1.96
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 6.67
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 7.17
• Enterprise Value/Gross Profit: 9.31
• Enterprise Value/Ebitda: 17.04
• 1Y Price Target: $22.50
• Price Target Upside: 28.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: $18.00 ▲(2.97% Upside)

Jefferson Capital, Inc. has strong financial performance with revenue growth and profitability, but increased leverage and cash conversion challenges pose risks. Technical indicators suggest bearish momentum, and the lack of a P/E ratio limits valuation insights. The modest dividend yield provides limited income potential.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and product demand, supporting long-term business expansion and stability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction.

Profitability

A strong gross profit margin indicates efficient cost management and pricing power, contributing to sustainable profitability.

Negative Factors

Increased Leverage

Higher leverage can increase financial risk, potentially impacting the company's ability to invest in growth and meet obligations.

Net Profit Margin Pressure

Decreasing net profit margins suggest rising costs or competitive pressures, which could affect long-term earnings potential.

Cash Conversion Challenges

Difficulty in converting income to cash may limit liquidity, affecting the company's ability to fund operations and growth initiatives.

Jefferson Capital, Inc. Business Overview & Revenue Model

Company Description

Jefferson Capital, Inc. provides debt recovery solutions and other related services in the United States, the United Kingdom, Canada, and Latin America. The company primarily purchases portfolios of previously charged-off consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. It offers consumer receivables, including credit card, secured and unsecured automotive, telecom and utilities, and other receivables. The company also provides debt servicing and other portfolio management services to credit originators for nonperforming loans. Jefferson Capital, Inc. was founded in 2002 and is headquartered in Sartell, Minnesota.

How the Company Makes Money

Jefferson Capital, Inc. generates revenue primarily through interest income from consumer loans and fees associated with debt recovery services. The company purchases consumer debt portfolios at a discount and then seeks to recover the outstanding amounts, earning a profit based on the difference between the purchase price and the amount collected. Additionally, JCAP earns revenue from servicing fees charged to clients for managing their debt portfolios and other financial services. Strategic partnerships with financial institutions and technology providers enhance their operational capabilities, driving growth in their revenue streams. Factors contributing to earnings include effective risk management practices, a robust technology platform for data analytics, and a strong regulatory compliance framework that supports their operations in the financial sector.

Jefferson Capital, Inc. Financial Statement Overview

Summary

Jefferson Capital, Inc. shows strong revenue growth and profitability with a robust gross profit margin. However, the increased debt-to-equity ratio and pressure on net profit margin indicate financial risks. Solid cash flow generation is a positive, but challenges in converting income to cash need attention.

Income Statement

Jefferson Capital, Inc. has demonstrated strong revenue growth with a 34.12% increase in the latest year. The gross profit margin remains robust at 71.17%, although slightly lower than the previous year. Net profit margin decreased to 24.30%, indicating some pressure on profitability. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio has increased to 3.12, indicating higher leverage, which could pose financial risk. Return on equity is strong at 27.53%, showcasing effective use of equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Free cash flow growth is impressive at 36.14%, and the free cash flow to net income ratio is nearly 1, indicating good cash generation relative to profits. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	307.61M	433.30M	323.07M	45.09M	31.21M	12.19M
Gross Profit	236.83M	308.40M	238.44M	41.10M	29.50M	11.92M
EBITDA	129.44M	158.06M	121.22M	59.17M	60.01M	16.15M
Net Income	98.35M	105.30M	111.52M	44.41M	54.37M	14.56M
Balance Sheet
Total Assets	1.77B	1.65B	1.12B	812.78M	590.41M	314.63M
Cash, Cash Equivalents and Short-Term Investments	51.65M	35.51M	14.37M	3.28M	8.71M	46.98M
Total Debt	1.19B	1.19B	770.93M	202.79M	24.61M	718.00K
Total Liabilities	1.36B	1.27B	811.78M	223.90M	42.54M	8.81M
Stockholders Equity	410.81M	382.53M	274.79M	588.87M	547.86M	305.82M
Cash Flow
Free Cash Flow	130.03M	162.00M	118.99M	-180.21M	-281.29M	-159.11M
Operating Cash Flow	130.56M	168.21M	120.22M	-13.63M	-6.30M	-3.57M
Investing Cash Flow	-66.94M	-542.37M	-403.41M	-321.31M	-241.75M	-115.55M
Financing Cash Flow	-43.11M	388.82M	289.86M	-4.17M	34.97M	72.66M

Jefferson Capital, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	76 Outperform	$508.07M	2.86	13.64%	7.48%	12.69%	-35.36%
FINV	74 Outperform	$1.70B	4.53	18.75%	4.13%	8.41%	34.76%
QD	70 Outperform	$703.44M	10.06	4.57%	―	-39.25%	―
OMF	68 Neutral	$6.20B	9.43	20.47%	7.98%	9.41%	13.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PRAA	62 Neutral	$523.20M	5.77	7.38%	―	18.67%	2254.86%
JCAP	58 Neutral	$1.02B	―	―	1.37%	―	―