Jefferson Capital Inc. Common Stock (JCAP)

FairStock Score: 89/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses, durable economics, and a margin of safety. Jefferson Capital buys discounted consumer receivables and collects them. That is a real business with cash flow, but it is not a franchise in the Coca-Cola sense: returns depend on purchasing portfolios at discounts and collecting them. The filed record shows growth: revenue rose from $323.1M in fiscal year 2023, ended 2023-12-31, to $613.3M in fiscal year 2025, ended 2025-12-31; net income rose from $111.5M to $188.0M. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $176.4M and net income $37.6M; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $177.5M and net income $41.3M, a 23.26% margin. But net income in fiscal Q2 2026 was below the $47.7M reported in fiscal Q2 2025, so the recent trend needs watching. Financial health is mixed: FairStock shows ROE 34.95%, ROCE 12.52%, Piotroski 7/9, and TTM free cash flow of $220.1M, an 18.7% FCF yield at the 2026-10-13 close. Yet D/E is 2.96 and Altman Z is 1.97, a gray-zone reading. At $20.54, FairStock's P/B is 2.48 and EV/EBITDA is 9.54; the P/E of -0.26 reflects a negative per-share earnings input, so it is not useful. The 4.68% dividend yield helps, but leverage means the margin of safety is thinner than the headline cash yield suggests. I would want evidence that collections and earnings are steady before calling it cheap.

In plain English: Jefferson Capital buys unpaid consumer debts at a discount and collects payments from people in several countries. The business is profitable and generates cash, but it carries a lot of debt and recent profit has slipped. At the $20.54 close on 2026-10-13, the price looks full compared with accounting net assets, though strong cash generation gives it some support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer