Jefferies Financial Group, Inc. (JEF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Jefferies Financial Group, Inc.

The Bank of New York Mellon Corp.

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Why is Jefferies Financial Group, Inc. ?

Strong Long Term Fundamental Strength with a 19.37% CAGR growth in Operating Profits

Flat results in May 25

DEBT-EQUITY RATIO (HY) Highest at 212.64 %
RAW MATERIAL COST(Y) Grown by 6.04% (YoY)
NET SALES(Q) Lowest at USD 1,649.05 MM

With ROE of 6.47%, it has a very attractive valuation with a 1.42 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -25.07%, its profits have risen by 119.1% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -25.07% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jefferies Financial Group, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Jefferies Financial Group, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jefferies Financial Group, Inc.

-24.54%

0.67

47.34%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.03%

EBIT Growth (5y)

19.37%

EBIT to Interest (avg)

2.02

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

26.30%

Dividend Payout Ratio

43.67%

Pledged Shares

Institutional Holding

78.99%

ROCE (avg)

509.99%

ROE (avg)

8.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.42

EV to EBIT

0.38

EV to EBITDA

0.36

EV to Capital Employed

-0.64

EV to Sales

0.17

PEG Ratio

0.18

Dividend Yield

2.28%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

6.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 1.35

-22What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 212.64 %

RAW MATERIAL COST(Y)

Grown by 6.04% (YoY

NET SALES(Q)

Lowest at USD 1,649.05 MM

PRE-TAX PROFIT(Q)

Lowest at USD 134.9 MM

NET PROFIT(Q)

Lowest at USD 88.02 MM

EPS(Q)

Lowest at USD 0.4

Here's what is working for Jefferies Financial Group, Inc.

Dividend per share

Highest at USD 1.35

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

At USD 52.25 MM has Grown at 58.37%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Jefferies Financial Group, Inc.

Net Sales

At USD 1,649.05 MM has Fallen at -32.3%

over average net sales of the previous four periods of USD 2,435.95 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 134.9 MM has Fallen at -44.27%

over average net sales of the previous four periods of USD 242.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 88.02 MM has Fallen at -46.7%

over average net sales of the previous four periods of USD 165.13 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 212.64 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at USD 1,649.05 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD 134.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 88.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.4

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 6.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales