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ZYBERNO

Stock Report

Updated Aug 29, 2026

Jefferies Financial Group Inc. (JEF)

Financial Services • NYSE

$53.18

Jefferies Financial Group Inc. is an American diversified financial services company headquartered in New York City. The company operates one of the largest full-service global investment banking firms not affiliated with a large bank, providing investment banking, sales and trading, equities, fixed income, and research services. Jefferies is particularly active in middle-market and emerging growth company advisory work.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

31.0/100

WEAK BUSINESS

Jefferies Financial Group Inc. (JEF) scores 31/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full JEF quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-17.2%

Market Overestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full JEF valuation analysis · → View full JEF Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):POOR (8.1%)

Debt-to-Equity (Solvency Risk):POOR (1.76x)

Operating Margin (Operational Efficiency):AVERAGE (9.4%)

Return on Capital (Capital Efficiency):CRITICAL (2.4%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Jefferies Financial Group Inc. (JEF) stock report — Zyberno Score 31/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, Jefferies Financial Group Inc. (JEF) shows a Brina Gap of -17.2%, which weakens the case: based on the company's ROIC (2.4%) and reinvestment rate (-1.3%), the business can fundamentally grow at 0.0% — but the current enterprise value implies the market expects 17.2%.

Over the trailing twelve months, JEF generated -$785.43M in Owner Earnings. Capital was deployed as follows: $174.30M returned via share buybacks, $374.19M paid as dividends, $341.94M invested in capital expenditures. Reinvestment rate: -1.3%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:53.18

Market Cap:$10.82B

Valuation Multiples (4)

P/E Ratio:

17.97x

📊 Click to view full JEF P/E analysis →

P/B Ratio:1.02x

P/S Ratio:0.91x

Peg Ratio:8.68x

Enterprise Metrics (2)

Enterprise Value:$36.46B

Ev Ebitda Ratio:27.49x

Price Action & Momentum (3)

12-1 Momentum:

-0.3% (31th pctile)

📈 Click to view full JEF Momentum analysis →

Momentum Percentile:31 / 100

% of 52-Week High:74.9%

B. Profitability Assessment

Return Metrics (7)

ROE:

8.1%

📊 Click to view full JEF ROE analysis →

ROA:1.2%

Roic:

2.4%

📊 Click to view full JEF ROIC analysis →

Reinvestment Rate:-1.3%

Fundamental Growth Rate (g):0.0%

Market-Implied Growth Rate:17.2%

Brina Gap:

-17.2%

☷ Click to view full JEF Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:9.4%

Net Margin Ttm:7.3%

Ebitda Margin:11.2%

TTM Performance (3)

Gross Margin Ttm:98.6%

Operating Margin Ttm:9.4%

Net Margin Ttm:7.3%

Yield Metrics (2)

Earnings Yield:$5.57

Dividend Yield:3.5%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.67

📊 Click to view full JEF Earnings Surprise analysis →

EPS Surprise vs Expected:92.4%

Latest Earnings Filed:2026-04-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):17.9%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):33.3%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):80.4%

Operating Cash Flow Growth Rate (Linear):-8.0%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):26.4%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.21x

Quick Ratio:0.21x

Cash Ratio:0.21x

Leverage Analysis (3)

Debt To Equity Ttm:1.76x

Debt-to-Equity Ratio:1.76x

Debt To Ebitda:30.13x

Coverage Ratios (2)

Interest Coverage Ratio:0.25x

Times Interest Earned:0.25

Capital Structure (4)

Working Capital:-54,617,351,000.00

Cash And Cash Equivalents:14,314,804,000.00

Long Term Debt:$18.04B

Net Debt:$25.64B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $11.85B

Linear Growth: 17.9%

📊 Click to view full JEF Revenue analysis & methodology →

Cost Of Revenue Ttm:$167.58M

Profitability Breakdown (2)

Gross profit TTM: $11.68B

Linear Growth: 18.5%

📊 Click to view full JEF Gross Profit analysis & methodology →

Operating income TTM: $1.11B

Linear Growth: 26.4%

📊 Click to view full JEF Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $863.13M

Linear Growth: 33.3%

📊 Click to view full JEF Net Income analysis & methodology →

Income Before Tax:$1.11B

Ebitda Ttm:1,326,021,000.00

Operating Expenses (5)

Operating Expenses:7,227,078,000.00

R And D Expense:0.00

Sga Expense:0.00

Income Tax Expense:$245.29M

Interest Expense:3,506,094,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:0.0%

Ebitda Margin:11.2%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$79.54B

Current Assets:$14.31B

Ppe Net:0.00

Goodwill:1,725,481,000.00

Intangible Assets:$111.03M

Liability Structure (4)

Total Liabilities:68,932,155,000.00

Current Liabilities:68,932,155,000.00

Long Term Debt:$18.04B

Short Term Debt:$21.92B

Equity & Capital (3)

Equity:$10.61B

Retained Earnings:$8.80B

Common Stock:600,000,000.00

Working Capital Items (3)

Accounts Receivable:0.00

Inventory:0.00

Accounts Payable:3,337,495,000.00

Special Items (2)

Contract Liabilities:62,600,000.00

Stock Based Compensation:150,000,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: -$567.27M

Linear Growth: -8.0%

Free cash flow TTM: -$909.21M

Linear Growth: 80.4%

📊 Click to view full JEF Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$129.27M

Capital Expenditures Ttm:341,941,000.00

Financing Activities (3)

Financing Cash Flow:$627.10M

Dividends Paid Ttm:374,186,000.00

Stock Repurchase:174,303,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$1.24B

Non-Cash Items (1)

Depreciation Amortization Ttm:213,233,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):3.05

Eps diluted TTM: $2.96

Linear Growth: 25.0%

📊 Click to view full JEF EPS analysis & methodology →

Earnings Per Share Ttm:$4.24

Revenue & Cash Per Share (2)

Sales Per Share Ttm:58.24

Operating Cash Flow Per Share:-$7.35

Book Value & Capital (2)

Book Value Per Share:$52.15

Cash Per Share:70.38

Dividend Policy (1)

Dividend Payout Ratio:189.89x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.16x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x

Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:7,269.37

Cash Conversion Cycle:-9,267.37

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:20.00

Quality Score:50.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$785.43M

Damodaran Growth Analysis (4)

Reinvestment Rate:-1.3%

Fundamental Growth Rate (g):0.0%

Market-Implied Growth Rate:17.2%

Brina Gap:

-17.2%

☷ Click to view full JEF Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):17.9%

Net Income Growth Rate (Linear):33.3%

Operating Income Growth Rate (Linear):26.4%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):80.4%

Operating Cash Flow Growth Rate (Linear):-8.0%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):18.5%

Book Value Growth Rate (Linear):1.7%

C. Company Profile & Context

Corporate Information (6)

Symbol:JEF

Company Name:Jefferies Financial Group Inc.

Sector:Financial Services

Industry:Investment Services

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:high

Volume Category:N/A

Share Structure (3)

Shares Outstanding:203.39M

Shares Outstanding Basic:203.39M

Shares Outstanding Diluted:223.27M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-29 10:17:59 UTC

Data Timestamp:2026-08-29T10:17:59.363497