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1. Company Snapshot

1.a. Company Description

Jefferies Financial Group Inc.engages in the investment banking and capital markets, and asset management businesses in the Americas, Europe, the Middle East, Africa, and Asia.The company operates in Investment Banking and Capital Markets, Asset Management, Merchant Banking, and Corporate segments.


It provides investment banking, advisory services with respect to mergers or acquisitions, restructurings or recapitalizations and private capital advisory transactions; equity and debt underwriting; and corporate lending.In addition, the company offers financing, securities lending, and other prime brokerage services; equities research and finance; and wealth management services.Further, it provides clients with sales and trading of investment grade corporate bonds, U.S. and European government and agency securities, municipal bonds, mortgage-backed and asset-backed securities, leveraged loans, consumer loans, high yield and distressed securities, emerging markets debt, interest rate, and credit derivative products, as well as foreign exchange trade execution and securitization; and manages, invests in, and provides services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes.


The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc.in May 2018.Jefferies Financial Group Inc.


was founded in 1962 and is headquartered in New York, New York.

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1.b. Last Insights on JEF

Jefferies Financial Group Inc. faces a securities fraud investigation, which has led to a significant decline in its stock value. The investigation, initiated by Bleichmar Fonti & Auld LLP, alleges potential violations of federal securities laws. This development has likely contributed to investor concerns and may have impacted the company's reputation. Additionally, the company's recent earnings release showed strong results, but rising expenses. The investigation and associated uncertainty have created a challenging environment for the company.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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INVESTOR ALERT: The Jefferies Financial Group Inc. Securities Fraud Investigation is Pending, Investors Urged to Contact BFA Law

Dec -04

Source: newsfilecorp.com

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AI pricing needs to come down to increase adoption, says Jefferies' Brent Thill

Dec -03

Source: youtube.com

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JEFFERIES STOCK ALERT: Jefferies Financial Group Inc. (JEF) Investors Reminded to Contact BFA Law about its Ongoing Investigation after SEC Probe Revealed

Dec -03

Source: newsfilecorp.com

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JEF NEWS: Jefferies Financial Group Inc. Investigated for Securities Fraud after Stock Plummets 8% -- Investors Notified to Contact BFA Law

Dec -03

Source: globenewswire.com

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JEF INVESTOR ALERT: Jefferies Financial Group Inc. Investors are Notified the Company is Under Investigation by the SEC and are Notified to Contact BFA Law

Dec -02

Source: newsfilecorp.com

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JEF INVESTORS: Jefferies Financial Group Inc. Investors are Notified to Contact BFA Law about its Ongoing Investigation after SEC Probe into Point Bonita Disclosures

Dec -01

Source: newsfilecorp.com

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Fed is holding back AI suppressed labor market with restrictive policy: Jefferies' David Zervos

Dec -01

Source: youtube.com

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SEC Scrutinizes Jefferies Over First Brands Disclosures

Dec -01

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.02%)

6. Segments

Investment Banking and Capital Markets

Expected Growth: 8.97%

Jefferies Financial Group Inc.'s 8.97% growth in Investment Banking and Capital Markets is driven by strong advisory and equity underwriting activity, increased M&A deal volumes, and a favorable market environment. Additionally, the company's strategic expansion into new markets, improved debt capital markets performance, and a robust pipeline of deals contribute to its growth momentum.

Asset Management

Expected Growth: 10.27%

Jefferies Financial Group Inc.'s 10.27% growth in Asset Management is driven by increasing demand for investment products, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on diversifying its revenue streams, improving operational efficiency, and enhancing its technology platform have contributed to its growth.

Reconciling Items

Expected Growth: 9.27%

Jefferies Financial Group Inc.'s 9.27% growth is driven by strong investment banking revenue, fueled by increased M&A activity and equity issuance. Additionally, the company's wealth management segment has seen significant growth, driven by net new asset inflows and market appreciation. Furthermore, the company's cost-cutting initiatives have improved operating efficiency, contributing to the overall growth.

7. Detailed Products

Equities

Jefferies Financial Group Inc. provides a range of equities products and services, including cash equities, derivatives, and equity capital markets. The company's equities platform offers trading, research, and execution services to institutional clients.

Fixed Income

Jefferies Financial Group Inc. offers a range of fixed income products and services, including government bonds, corporate bonds, and municipal bonds. The company's fixed income platform provides trading, research, and execution services to institutional clients.

Advisory Services

Jefferies Financial Group Inc. provides advisory services to clients on mergers and acquisitions, restructuring, and other strategic transactions. The company's advisory team provides guidance on deal strategy, due diligence, and negotiation.

Wealth Management

Jefferies Financial Group Inc. offers wealth management services to high net worth individuals, families, and institutions. The company's wealth management platform provides investment management, financial planning, and wealth transfer services.

Asset Management

Jefferies Financial Group Inc. offers asset management services to institutional clients, including pension funds, endowments, and foundations. The company's asset management platform provides investment management, portfolio construction, and risk management services.

8. Jefferies Financial Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Jefferies Financial Group Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified business model and strong brand recognition.

Bargaining Power Of Customers

Jefferies Financial Group Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized, making it difficult for customers to switch to competitors.

Bargaining Power Of Suppliers

Jefferies Financial Group Inc. relies on a network of suppliers to provide services and products, but the company's scale and bargaining power mitigate the risk of supplier concentration.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory hurdles and capital requirements, which limits the threat of new entrants. Jefferies Financial Group Inc.'s established brand and scale also make it difficult for new entrants to compete.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. Jefferies Financial Group Inc. faces intense competition from other investment banks and financial institutions, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.37%
Debt Cost 10.64%
Equity Weight 37.63%
Equity Cost 10.64%
WACC 10.64%
Leverage 165.73%

11. Quality Control: Jefferies Financial Group Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Stifel Financial

A-Score: 6.4/10

Value: 7.6

Growth: 5.8

Quality: 6.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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PJT Partners

A-Score: 6.1/10

Value: 3.8

Growth: 8.2

Quality: 6.5

Yield: 3.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

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Jefferies

A-Score: 5.7/10

Value: 6.3

Growth: 5.1

Quality: 6.6

Yield: 6.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Evercore

A-Score: 5.6/10

Value: 3.3

Growth: 5.8

Quality: 8.2

Yield: 3.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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Piper Sandler

A-Score: 5.6/10

Value: 1.8

Growth: 5.4

Quality: 7.9

Yield: 5.0

Momentum: 6.5

Volatility: 6.7

1-Year Total Return ->

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Interactive Brokers

A-Score: 5.2/10

Value: 0.8

Growth: 8.7

Quality: 6.4

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

59.12$

Current Price

59.12$

Potential

-0.00%

Expected Cash-Flows