Jefferies Financial Group Inc. Common Stock (JEF)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Revenue growth of 16.1% demonstrates strong top-line momentum
• Attractive 3.0% dividend yield providing steady income returns

Concerns

• High leverage at 3.44x debt-to-equity increases financial risk and interest expense burden
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Jefferies Financial Group Inc. Common Stock is a small-cap financial services company valued at $9.5 billion. The business generates $5.4 billion in annual revenue with a 2.9% net margin. From a quality standpoint, Jefferies shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is reasonably priced at 17.5x earnings, with a modest 22% margin of safety vs Graham Number. Growth dynamics show revenue growing at 16.1% and profit growth of 21.8%. The 3.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 53/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Jefferies's 16% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 3.4x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer