Jefferies (JEF) AI Stock Analysis

• Market Cap: $10.93B
• Dividend Yield: 2.87%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.61
• 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: 1,959,636
• 30 Day Avg. Volume: 3,352,849
• 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: 3.39
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 6.59
• Enterprise Value/Ebitda: 12.81
• 1Y Price Target: $71.00
• Price Target Upside: 33.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $53.00 ▼(-0.62% Downside)

Jefferies' overall stock score is primarily impacted by its challenging financial performance, with high leverage and weak cash flow management posing significant risks. Technical analysis indicates bearish momentum, further weighing on the score. While the valuation is reasonable, it is not enough to counterbalance the financial and technical weaknesses.

Positive Factors

Diverse Revenue Streams

Jefferies' diversified revenue streams from investment banking, trading, and asset management provide resilience against market volatility, supporting long-term stability.

Strong Market Presence

A broad client base and strong market presence enhance Jefferies' ability to capitalize on financial transactions, ensuring sustained demand for its services.

Healthy Gross Profit Margin

A strong gross profit margin indicates efficient cost management and pricing power, contributing to long-term profitability despite other financial pressures.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting Jefferies' ability to invest in growth opportunities and weather economic downturns.

Weak Cash Flow Management

Weak cash flow management indicates inefficiencies in converting income into cash, which can strain liquidity and limit operational flexibility.

Exposure to First Brands Bankruptcy

Significant exposure to First Brands' bankruptcy could lead to financial losses and impact Jefferies' asset management division, affecting long-term financial health.

Jefferies Business Overview & Revenue Model

Company Description

Jefferies 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 Money

Jefferies 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 presents a mixed financial picture. While revenue growth and gross profit margins are positive, the company faces challenges with operational profitability and high leverage. Cash flow management is a concern, with negative cash flows impacting liquidity. The company needs to address its leverage and improve operational efficiency to enhance financial stability.

Income Statement

Jefferies shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 2.44%, but the EBIT margin is negative, suggesting operational challenges. The gross profit margin remains healthy at over 52%, indicating efficient cost management. However, the net profit margin is relatively low at 6.63%, reflecting pressure on profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk in volatile markets. The return on equity is modest at 9.26%, showing moderate profitability relative to equity. The equity ratio stands at 15.43%, suggesting a lower proportion of equity financing compared to total assets.

Cash Flow

Jefferies faces challenges in cash flow management, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is positive at 1.08, indicating that free cash flow exceeds net income, but the negative growth in free cash flow highlights potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.73B	10.52B	7.23B	7.53B	9.46B	6.90B
Gross Profit	5.62B	6.22B	6.66B	6.51B	8.40B	6.13B
EBITDA	2.89B	4.68B	3.10B	2.42B	3.37B	2.17B
Net Income	711.56M	743.38M	277.69M	785.45M	1.67B	775.24M
Balance Sheet
Total Assets	69.32M	64.36B	57.91B	51.06B	56.11B	53.12B
Cash, Cash Equivalents and Short-Term Investments	11.46M	12.15B	8.53B	9.70B	10.76B	9.06B
Total Debt	35.12B	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	10.50M	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: Negative
• Last Price: 53.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 53.33 is below the 20-day moving average (MA) of 53.67, below the 50-day MA of 60.27, and below the 200-day MA of 57.23, indicating a bearish trend. The MACD of -1.74 indicates Negative momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 27.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JEF.

Jefferies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVR	76 Outperform	$11.49B	23.73	31.39%	1.12%	27.00%	63.47%
SF	76 Outperform	$12.20B	21.07	11.73%	1.51%	7.54%	2.73%
PIPR	71 Outperform	$5.77B	24.59	19.30%	1.77%	12.77%	36.43%
MC	71 Outperform	$5.00B	20.80	51.98%	3.82%	51.19%	456.59%
HLI	70 Outperform	$12.52B	28.91	20.29%	1.18%	20.99%	25.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JEF	49 Neutral	$10.93B	18.26	6.29%	2.87%	-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.

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.

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.

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.

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.

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.

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.

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

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

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.

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.