Should you short your stake in Jefferies Financial?
 | By Ellen Johnson | Macroaxis Story |
In spite of rather weak fundamental drivers, Jefferies Financial exhibited solid returns over the last few months and may actually be approaching a breakup point. This firm current odds of bankruptcy is under 49 percent. Will the firm executives continue to add value?
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Reviewed by Raphi Shpitalnik
On a scale of 0 to 100, Jefferies Financial holds a performance score of 3. The company retains a Market Volatility (i.e. Beta) of -0.0363, which attests to not very significant fluctuations relative to the market. Let's try to break down what Jefferies's beta means in this case. As returns on the market increase, returns on owning Jefferies Financial are expected to decrease at a much lower rate. During the bear market, Jefferies Financial is likely to outperform the market. Although it is extremely important to respect Jefferies Financial current price history, it is better to be realistic regarding the information on equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating Jefferies Financial technical indicators, you can presently evaluate if the expected return of 0.22% will be sustainable into the future. Please utilizes Jefferies Financial information ratio, value at risk, kurtosis, as well as the relationship between the sortino ratio and semi variance to make a quick decision on whether Jefferies Financial Group current trending patterns will revert.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Jefferies Financial income statement, its balance sheet, and the statement of cash flows. Potential Jefferies Financial investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Jefferies Financial investors may use each financial statement separately, they are all related. The changes in Jefferies Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Jefferies Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Jefferies Financial fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Jefferies Financial performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Jefferies Financial shares is the value that is considered the true value of the share. If the intrinsic value of Jefferies is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Jefferies Financial. Please read more on our fundamental analysis page. How effective is Jefferies Financial in utilizing its assets?
Jefferies Financial Group reports assets on its Balance Sheet. It represents the amount of Jefferies resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Jefferies Financial aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Multi-Sector Holdings space. To get a better handle on how balance sheet or income statements item affect Jefferies volatility, please check the breakdown of all its fundamentals.Are Jefferies Financial Earnings Expected to grow?
The future earnings power of Jefferies Financial involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Jefferies Financial factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Jefferies Financial stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Jefferies expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Jefferies Financial earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Jefferies Financial dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Jefferies one year expected dividend income is about USD0.8 per share.
At this time, Jefferies Financial's Dividends Paid is most likely to increase significantly in the upcoming years. The Jefferies Financial's current Dividend Payout Ratio is estimated to increase to 0.72, while Dividend Yield is projected to decrease to 0.01. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 278.6 M | 292.5 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.68 | 0.72 | |
| Dividend Paid And Capex Coverage Ratio | (14.10) | (13.40) |
Investing in dividend-paying stocks, such as Jefferies Financial Group is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Jefferies Financial must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Jefferies Financial. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.Jefferies Financial Gross Profit
Jefferies Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Jefferies Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Jefferies Financial Gross Profit growth over the last 10 years. Please check Jefferies Financial's gross profit and other fundamental indicators for more details.
What is driving Jefferies Financial Investor Appetite?
Jefferies Financial Group has a total of two hundred sixty-seven million one hundred ten thousand outstanding shares. Majority of Jefferies Financial outstanding shares are owned by outside corporations. These institutional investers are referred to non-private investors that are looking to purchase positions in Jefferies Financial to benefit from reduced commissions. Consequently, third-party entities are subject to different set of regulations than regular investors in Jefferies Financial Group. Please pay attention to any change in the institutional holdings of Jefferies Financial as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company holds, if the real value of the the firm is less than the current market value, you may not be able to make money on it. Jefferies Financial Group Inc., a diversified financial services company, engages in investment banking and capital markets, asset management, and direct investing businesses in the Americas, Europe, the Middle East, Africa, and Asia. Jefferies Financial Group Inc. was founded in 1968 and is headquartered in New York, New York. Jefferies Financial operates under Financial Conglomerates classification in the United States and is traded on BATS Exchange. It employs 4800 people.Jefferies Financial Earnings before Tax is rather stable at the moment. Further, Jefferies Financial Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Jefferies Financial Group. Please refer to our Terms of Use for any information regarding our disclosure principles.