📊 JEF Key Takeaways
Is Jefferies Financial Group Inc. (JEF) a Good Investment?
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.
Revenue rebounded strongly, but profitability and returns remain weak, with net income down despite a near-doubling of revenue. Extremely low interest coverage and negative operating/free cash flow point to fragile fundamentals that need clear improvement before a more constructive stance is warranted.
Why Buy Jefferies Financial Group Inc. Stock? 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
- Robust top-line growth (+95% YoY) with sizable scale
- Strong liquidity profile (~$12B cash; current ratio ~2x)
- Solid shareholders' equity base (~$10.6B) supporting operations
JEF Stock Risks: Jefferies Financial Group Inc. Investment Risks
- 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
- Very weak returns and margins (ROE 1.5%, net margin 5.5%)
- Extremely low interest coverage (0.1x) heightens earnings/funding risk
- Negative operating and free cash flow indicating poor cash generation
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
- Interest coverage (sustained improvement >1x-2x)
- Operating cash flow and FCF turning sustainably positive
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 |
|---|---|---|---|
| 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.
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 Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 72% combined 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. ChatGPT: Robust top-line growth (+95% YoY) with sizable scale. Strong liquidity profile (~$12B cash; current ratio ~2x).
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. ChatGPT: Very weak returns and margins (ROE 1.5%, net margin 5.5%). Extremely low interest coverage (0.1x) heightens earnings/funding risk.
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 SELL rating with 72% 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 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).
Is Jefferies Financial Group Inc. carrying too much debt?
JEF has a debt-to-equity ratio of 1.62x, which is above the Finance sector average of 2x. However, the current ratio of 1.97 suggests adequate short-term liquidity.