📊 JEF Key Takeaways
Is JEF a Good Investment? Thesis Analysis
Jefferies demonstrates alarming fundamental deterioration masked by 95% top-line growth: net income declined 7.5% YoY, operating cash flow is severely negative at -1.7B, and critically low interest coverage of 0.1x signals debt servicing stress. Poor capital efficiency (ROE 1.5%, ROA 0.2%) and unsustainable cash burn despite 12B liquidity indicate structural profitability challenges.
Why Buy JEF? Key Strengths
- Strong revenue growth of 95% YoY
- Adequate liquidity with current ratio of 1.97x and 12.0B cash reserves
- Positive operating income of 212.2M
JEF Investment Risks to Consider
- Severe negative operating cash flow of -1.7B with FCF margin of -62.8% indicates unsustainable cash burn and deteriorating business quality
- Critical interest coverage ratio of 0.1x suggests acute debt servicing stress despite operating income
- Paradoxical profitability decline - net income down 7.5% YoY despite massive revenue growth signals poor cost control or significant non-operating losses
- Extremely poor returns on capital with ROE of 1.5% and ROA of 0.2% indicate inefficient asset deployment
- Elevated leverage with Debt/Equity of 1.62x and 17.2B long-term debt constrains financial flexibility
Key Metrics to Watch
- Operating cash flow trend and path to positive territory
- Interest coverage ratio improvement above 1.0x
- Net income trajectory and profitability recovery relative to revenue growth
- Debt/Equity ratio reduction below 1.4x
- Return on Equity improvement toward industry standards
JEF Financial Metrics
💡 AI Analyst Insight
Jefferies Financial Group Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
JEF Profitability Ratios
JEF vs Finance Sector
How Jefferies Financial Group Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is JEF Overvalued or Undervalued?
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.
JEF Balance Sheet & Liquidity
JEF 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
JEF Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q3 2023 | $845.0M | $53.9M | $0.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
JEF Capital Allocation
JEF SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are JEF's key strengths?
Claude: Strong revenue growth of 95% YoY. Adequate liquidity with current ratio of 1.97x and 12.0B cash reserves.
What are the risks of investing in JEF?
Claude: Severe negative operating cash flow of -1.7B with FCF margin of -62.8% indicates unsustainable cash burn and deteriorating business quality. Critical interest coverage ratio of 0.1x suggests acute debt servicing stress despite operating income.
What is JEF's revenue and growth?
Jefferies Financial Group Inc. reported revenue of $2.9B.
Does JEF pay dividends?
Jefferies Financial Group Inc. pays dividends, with $92.8M 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 rating reflects both perspectives for balanced insights.
Is JEF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Jefferies Financial Group Inc. has a STRONG SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is JEF stock overvalued or undervalued?
Valuation metrics for JEF: ROE of 1.5% (sector avg: 12%), net margin of 5.5% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy JEF stock in 2026?
Our dual AI analysis gives Jefferies Financial Group Inc. a combined STRONG SELL rating 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 $-1.7B, with capital expenditures of $64.9M. FCF margin is -62.8%.
How does JEF compare to other Finance stocks?
Vs Finance sector averages: Net margin 5.5% (avg: 25%), ROE 1.5% (avg: 12%), current ratio 1.97 (avg: 1.2).