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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4517
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Trading
$13.3B
Richard B. Handler
Jefferies Financial Group Inc. engages in the investment banking and capital markets, and asset management businesses. The company operates in Investment Banking and Capital Markets, Asset Management, Merchant Banking, and Corporate segments. It provides clients with sales and trading of investment grade corporate bonds, government and agency securities, municipal bonds, mortgage-backed and asset-backed securities, leveraged loans, consumer loans, and emerging markets debt.
Headcount
5.4K
HQ Base
New York, New York
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = JEF ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$JEF Jefferies Financial Group Inc. | 30 | 23 | 42 | 19 | 16.9x | 30.9x | 6.1% | 0.9% | 98.5% | 8.2% | 6.1% | 15.6% | 2.4% | 149.0x | $13.3B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
Jefferies Financial Group Inc. (JEF) receives a "Avoid" rating with a composite score of 30.1/100. It ranks #4517 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for JEF.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 23 | 5 | +18ALPHA |
| MOMENTUM | 19 | 11 | +8ALPHA |
| VALUATION | 42 | 47 | -5NEUTRAL |
| INVESTMENT | 32 | 45 | -13DRAG |
| STABILITY | 23 | 13 | +10ALPHA |
| SHORT INT | 32 | 22 | +10ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 37.1% vs WACC 6.3% (spread +30.7%)
GM 98% vs sector 78%, OM 8% vs sector 18%
Capital turnover 5.84x
Rev growth 16%, 10yr history
Interest coverage N/A, Net debt/EBITDA 1.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Jefferies Financial Group Inc. (JEF) as Avoid with a composite score of 30.1/100 at a current price of $50.31. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Jefferies Financial Group Inc. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 30.1/100 places it at rank #4517 in our full universe.
Narrow
Very High
Poor
Fair Value
Gross margins of 98% signal strong pricing power.
Stable competitive position in a defensive sector.
Leverage of 149% D/E amplifies downside risk.
Weak momentum suggests persistent institutional selling pressure.
Below-average quality raises earnings sustainability concerns.
Jefferies Financial Group Inc. represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Jefferies Financial Group Inc. with an Avoid rating, assigning a composite score of 30.1/100 and 1 out of 5 stars. Ranked #4517 of 7,333 stocks, JEF falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
Jefferies Financial Group Inc. registers a weak quality score of just 23/100, indicating significant profitability challenges. The company reports a return on equity of 6.1% (sector avg: 9.0%), gross margins of 98.5% (sector avg: 77.7%), net margins of 6.1% (sector avg: 21.9%). Low quality scores are often associated with businesses in turnaround mode, early-stage growth, or structurally challenged industries.
With a value score of 42/100, JEF appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 16.94x, an EV/EBITDA of 30.94x, a P/B ratio of 1.04x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Jefferies Financial Group Inc.'s investment score of 32/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 15.6% vs. a sector average of 10.7% and a return on assets of 0.9% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Jefferies Financial Group Inc. is experiencing notably weak momentum with a score of just 19/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 15.6% year-over-year, while a beta of 1.83 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
Jefferies Financial Group Inc. registers a low stability score of 23/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 1.83 and a debt-to-equity ratio of 149.00x (sector avg: 0.5x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
Jefferies Financial Group Inc.'s short interest score of 32/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include high market sensitivity (beta: 1.83), elevated leverage (D/E: 149.00x). At $13.3B (large-cap), JEF carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
JEF pays a solid dividend yield of 2.4%, contributing an income component to total returns. This compares to a sector average dividend yield of 2.0%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
Jefferies Financial Group Inc. is a large-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #4517 of 7,333 overall (38th percentile). Key comparisons include ROE of 6.1% trailing the 9.0% sector median and operating margins of 8.2% below the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While JEF currently exhibits a AVOID profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Momentum (19) would have the largest impact on the composite score.
EV/EBITDA 298% ABOVE SECTOR MEDIAN
ROE 32% BELOW SECTOR MEDIAN
Gross Margin 27% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
The article recommends two financial stocks from Berkshire Hathaway's portfolio as strong buys in February: Ally Financial and Jefferies Financial Group. Ally has streamlined its business by exiting low-growth segments, improving credit quality and margins ahead of expected rate cuts. Jefferies, a pure-play investment bank, has recovered from a 19% stock decline caused by First Brands bankruptcy exposure and stands to benefit from a strong M&A market in 2026.
Travere Therapeutics stock surged nearly 14% on Wednesday following bullish analyst notes. Jefferies analyst Maury Raycroft identified Travere as a potential takeover candidate and highlighted its drug Filspari as having blockbuster potential. Cantor Fitzgerald reported that the FDA appears flexible on approving Filspari for treating focal segmental glomerulosclerosis (FSGS), with an FDA decision expected by January 13, 2026.
Ford Motor and General Motors are in advanced discussions to provide a financial lifeline to bankrupt auto parts supplier First Brands Group through advance payments for future product deliveries. The Ohio-based supplier, which produces critical components including windshield wiper parts for Ford's F-150, filed for bankruptcy in September 2025 with nearly $12 billion in debt. While talks are near completion, the deal remains uncertain, with Ford facing the highest exposure risk.
Upstart, an AI-powered fintech lending platform, has underperformed since its IPO with volatile stock performance and struggles due to rising interest rates and management uncertainty. The article recommends Jefferies Financial Group as a better alternative, citing strong M&A activity tailwinds, reasonable valuation metrics, and 42% upside potential from Wall Street analysts.
Hong Kong-based stablecoin payments firm works with JPMorgan, Goldman Sachs and Jefferies on potential New York listing as soon as this year.