Jefferies Financial Group Inc. (JEF) Bundle
A Brief History of Jefferies Financial Group Inc.
Jefferies Financial Group Inc. (JEF) has undergone significant transformations and growth since its inception. The company has established a reputation as a leading global investment banking and capital markets firm. As of August 31, 2024, Jefferies reported total assets of $63.3 billion and total equity of $10.1 billion, reflecting a robust financial position within the industry.
Financial Performance Overview
For the three months ended August 31, 2024, Jefferies achieved net earnings of $28.8 million, a notable recovery from a loss of $31.5 million in the same period of the previous year. Year-to-date, the company reported net earnings of $68.1 million compared to a loss of $3.7 million for the nine months ended August 31, 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Earnings (in millions) | $28.8 | $(31.5) | $68.1 | $(3.7) |
| Total Assets (in billions) | $63.3 | $57.9 | ||
| Total Equity (in billions) | $10.1 | $9.8 |
Debt and Capital Structure
As of August 31, 2024, Jefferies reported long-term debt of $12.9 billion, an increase of $3.22 billion from the previous year, primarily due to the net issuance of unsecured senior notes amounting to $3.29 billion. The weighted average maturity of unsecured long-term debt stood at 8.1 years. The company maintained compliance with covenants under its credit facilities, which totaled $788.9 million at the end of the reporting period.
| Debt Metrics | Amount (in billions) | Weighted Average Maturity (in years) |
|---|---|---|
| Total Long-term Debt | $12.9 | 8.1 |
| Credit Facilities | $0.789 |
Market Position and Trading Performance
Jefferies’ average daily Value at Risk (VaR) for the three months ending August 31, 2024, decreased to $11.35 million from $13.36 million in the prior quarter, indicating reduced risk exposure. The firm experienced seven trading loss days within a total of 63 trading days, demonstrating relatively stable trading performance in a volatile market environment.
| Risk Metrics | Q3 2024 | Q2 2024 |
|---|---|---|
| Average Daily VaR (in millions) | $11.35 | $13.36 |
| Trading Loss Days | 7 |
Investment Banking and Asset Management
In the investment banking segment, Jefferies reported origination and syndication fee revenues of $200.2 million for the nine months ended August 31, 2024, a significant increase from $84.1 million in the prior year. Asset management fees for the same period reached $89.7 million, up from $75.0 million in the previous year, reflecting strong demand for the firm's managed funds.
| Revenue Streams | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|
| Origination and Syndication Fees | $200.2 | $84.1 |
| Asset Management Fees | $89.7 | $75.0 |
Recent Developments
In December 2023, Jefferies expanded its leasing operations through its subsidiary, Aircadia, which purchased airplanes for $57.7 million. This strategic move is aimed at enhancing the firm’s asset management capabilities and diversifying its revenue sources.
As of August 31, 2024, Jefferies continues to navigate the complex financial landscape, focusing on sustainable growth and risk management while enhancing its service offerings across investment banking and asset management sectors.
A Who Owns Jefferies Financial Group Inc. (JEF)
Major Shareholders
As of August 31, 2024, the ownership structure of Jefferies Financial Group Inc. consists of various institutional and individual shareholders. The largest shareholders include:
- Sumitomo Mitsui Banking Corporation (SMBC) – Approximately 15.8% of common stock on an as-converted basis.
- Massachusetts Mutual Life Insurance Company (MassMutual) – 50% equity interest in Jefferies Finance.
- Other institutional investors – Various asset management firms holding significant stakes.
Common Stock Information
Jefferies Financial Group Inc. has a total of 565,000,000 authorized shares of common stock, with a par value of $1.00 per share. As of August 31, 2024, the company had:
- 205,495,338 common shares outstanding.
- 210,626,642 common shares outstanding as of November 30, 2023.
Preferred Stock Information
The company has established Series B Non-Voting Convertible Preferred Shares, with a total of 70,000 shares designated. As of August 31, 2024:
- 55,125 shares issued and outstanding.
- Liquidation preference of $17,500 per share.
Shareholder Equity
As of August 31, 2024, the total shareholder equity for Jefferies Financial Group Inc. was:
- Total equity: $10,115,361,000
- Total shareholders’ equity: $10,046,000,000
- Total liabilities: $53,159,331,000
Joint Ventures and Affiliates
Jefferies Financial Group Inc. operates through several joint ventures:
- Jefferies Finance LLC – A 50/50 joint venture with MassMutual, focusing on senior secured loans.
- Berkadia – A commercial mortgage banking joint venture with Berkshire Hathaway, where Jefferies owns 45% of profits.
Ownership Structure Overview
| Shareholder Type | Ownership Percentage | Comments |
|---|---|---|
| Sumitomo Mitsui Banking Corporation (SMBC) | 15.8% | Largest common stock holder on an as-converted basis. |
| MassMutual | 50% (in Jefferies Finance) | Equity partner in a significant joint venture. |
| Institutional Investors | Varies | Includes various asset management firms. |
| Common Stock Outstanding | 205,495,338 shares | As of August 31, 2024. |
| Preferred Stock Outstanding | 55,125 shares | Series B Non-Voting Convertible. |
Recent Transactions and Changes
Recent ownership changes include:
- SMBC exchanged shares of common stock for preferred shares, increasing its stake in Jefferies Financial Group.
- Jefferies did not repurchase any shares under its share repurchase program during the nine months ended August 31, 2024.
Current Financial Performance
As of August 31, 2024, Jefferies Financial Group reported:
- Net revenues of $5,078,200,000 for the nine months ended August 31, 2024.
- Net earnings attributable to common shareholders of $462,719,000 for the nine months ended August 31, 2024.
Jefferies Financial Group Inc. (JEF) Mission Statement
Mission Statement Overview
As of 2024, Jefferies Financial Group Inc. (JEF) emphasizes its commitment to providing superior investment banking, capital markets, and asset management services. The mission statement reflects a dedication to delivering innovative financial solutions while fostering strong relationships with clients, investors, and communities.
Core Values
- Client-Centric Approach: Focus on understanding and meeting the unique needs of each client.
- Integrity: Commitment to ethical standards and transparency in all operations.
- Innovation: Continuous improvement and adaptation to the evolving financial landscape.
- Diversity and Inclusion: Fostering a diverse workforce that drives creativity and collaboration.
Recent Financial Highlights
Jefferies has demonstrated significant growth in various financial metrics for the nine months ended August 31, 2024, compared to the previous year:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Net Revenues | $5,078,200 | $3,503,211 | 45.0% |
| Non-Interest Expenses | $4,377,517 | $3,236,203 | 35.3% |
| Earnings from Continuing Operations | $493,606 | $191,955 | 157.1% |
| Net Earnings Attributable to Common Shareholders | $462,719 | $197,433 | 134.4% |
| Effective Tax Rate | 29.6% | 28.1% | 5.3% |
Investment Banking Performance
Investment banking remains a cornerstone of Jefferies' operations, with notable growth in net revenues for the three months ended August 31, 2024:
| Category | 2024 (Q3) | 2023 (Q3) | % Change |
|---|---|---|---|
| Advisory Net Revenues | $592,462 | $335,271 | 76.7% |
| Equity Underwriting | $150,096 | $154,211 | (2.7%) |
| Debt Underwriting | $183,078 | $110,708 | 65.4% |
| Total Investment Banking | $949,482 | $644,643 | 47.3% |
Equities and Fixed Income Performance
The performance in equities and fixed income has also shown robust growth:
| Category | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Equities Net Revenues | $1,147,656 | $852,000 | 34.7% |
| Fixed Income Net Revenues | $925,838 | $882,962 | 4.9% |
Asset Management Segment
Jefferies’ asset management segment has also experienced significant growth:
| Category | 2024 (Q3) | 2023 (Q3) | % Change |
|---|---|---|---|
| Total Asset Management Fees and Revenues | $59,012 | $10,143 | 481.8% |
Conclusion of Financials
Jefferies Financial Group Inc. continues to enhance its market position through strategic investments and a focus on client service, as evident in its financial results for 2024.
How Jefferies Financial Group Inc. (JEF) Works
Company Overview
Jefferies Financial Group Inc. is a global investment banking and capital markets firm. As of August 31, 2024, the company reported total assets of $63.28 billion and total equity of $10.12 billion.
Financial Performance
For the three months ended August 31, 2024, Jefferies reported net revenues of $1.68 billion, a 42.4% increase from $1.18 billion in the same quarter of the previous year. Year-to-date, net revenues reached $5.08 billion, up 45.0% from $3.50 billion during the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenues | $1,683 million | $1,182 million | 42.4% |
| Net Earnings from Continuing Operations | $494 million | $192 million | 157.1% |
| Effective Tax Rate | 29.6% | 28.1% | 5.3% |
| Net Earnings Attributable to Common Shareholders | $463 million | $197 million | 134.4% |
Investment Banking
Investment banking is a significant revenue stream for Jefferies. In Q3 2024, investment banking net revenues totaled $949.5 million, a 47.3% increase from $644.6 million in Q3 2023. Year-to-date, investment banking revenues reached $2.49 billion, up 45.6% from $1.71 billion in the prior year.
| Investment Banking Revenue Breakdown | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Advisory | $592.5 million | $335.3 million | 76.7% |
| Equity Underwriting | $150.1 million | $154.2 million | (2.7%) |
| Debt Underwriting | $183.1 million | $110.7 million | 65.4% |
Capital Markets
In the capital markets segment, Jefferies reported net revenues of $2.07 billion for the nine months ended August 31, 2024, an increase of 19.5% from $1.73 billion in the same period of 2023. The equities segment contributed $1.15 billion, up 34.7% year-over-year.
| Capital Markets Revenue Breakdown | Nine Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2023 | % Change |
|---|---|---|---|
| Equities | $1,147.7 million | $852.0 million | 34.7% |
| Fixed Income | $925.8 million | $883.0 million | 4.9% |
Asset Management
Jefferies operates a diversified alternative asset management platform. For Q3 2024, asset management revenues totaled $59.0 million, a significant increase from $10.1 million in Q3 2023, driven by enhanced management and performance fees.
| Asset Management Revenue Components | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Management Fees | $7.2 million | $5.3 million | 34.5% |
| Performance Fees | $0.5 million | $0.4 million | 25.0% |
Balance Sheet Highlights
As of August 31, 2024, Jefferies reported total liabilities of $53.16 billion, with total shareholders’ equity of $10.05 billion. The company had a leverage ratio of 6.3, up from 5.9 at November 30, 2023.
| Balance Sheet Metrics | August 31, 2024 | November 30, 2023 |
|---|---|---|
| Total Assets | $63.28 billion | $57.91 billion |
| Total Liabilities | $53.16 billion | $48.11 billion |
| Shareholders' Equity | $10.05 billion | $9.71 billion |
| Leverage Ratio | 6.3 | 5.9 |
Recent Developments
During Q3 2024, Jefferies completed 103 advisory transactions, 50 equity offerings, and 324 debt financings. The total value of advisory transactions was approximately $107.7 million, with public and private debt financings accounting for $133.3 million.
How Jefferies Financial Group Inc. (JEF) Makes Money
Overview of Revenue Streams
Jefferies Financial Group Inc. generates revenue through several key business segments including Investment Banking, Capital Markets, and Asset Management. The company has reported substantial growth across these areas in 2024.
| Business Segment | 2024 Q3 Revenue (in $ millions) | 2023 Q3 Revenue (in $ millions) | Percentage Change |
|---|---|---|---|
| Investment Banking | 949.5 | 644.6 | 47.3% |
| Capital Markets | 2,073.5 | 1,734.9 | 19.5% |
| Asset Management | 59.0 | 10.1 | 481.8% |
Investment Banking
Investment Banking constitutes a significant source of revenue for Jefferies. This segment includes advisory services for mergers and acquisitions, debt financing, and underwriting services. In Q3 2024, advisory revenues reached $592.5 million, a record high, reflecting a 76.7% increase from $335.3 million in Q3 2023.
Underwriting services also contributed significantly, with total underwriting net revenues of $333.2 million, up 25.8% from $264.9 million a year prior. Debt underwriting was particularly strong, increasing by 65.4% to $183.1 million.
Capital Markets
The Capital Markets segment encompasses both equities and fixed income trading. In Q3 2024, net revenues from equities were $381.4 million, a 42.3% increase from $268.0 million in the same quarter of 2023. This growth was driven by higher trading volumes and favorable market conditions.
For fixed income, net revenues were $289.2 million, reflecting a 13.2% increase from $255.6 million year-over-year, primarily due to stronger performance in credit trading.
Asset Management
Jefferies operates a diversified alternative asset management platform, generating revenues from management and performance fees. In Q3 2024, asset management net revenues soared to $59.0 million, compared to $10.1 million in the previous year, marking an increase of 481.8%.
The total assets under management by affiliated asset managers were approximately $18.5 billion as of August 31, 2024, compared to $22.4 billion in November 2023.
Other Revenue Sources
Additional revenue streams include earnings from joint ventures such as Jefferies Finance and Berkadia, which have shown significant contributions to the overall revenue picture. For instance, the share of net earnings from Jefferies Finance has been enhanced by higher net fee income.
Financial Performance Summary
For the nine months ended August 31, 2024, Jefferies reported total net revenues of $5.08 billion, up 45.0% from $3.50 billion in the previous year. Net earnings attributable to common shareholders were $462.7 million, a 134.4% increase compared to $197.4 million in the prior year.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Percentage Change |
|---|---|---|---|
| Total Net Revenues | $5,078.2 million | $3,503.2 million | 45.0% |
| Net Earnings | $462.7 million | $197.4 million | 134.4% |
| Effective Tax Rate | 29.6% | 28.1% | 5.3% |
Overall, Jefferies Financial Group Inc. has demonstrated robust growth across its business segments in 2024, driven by strong performance in investment banking and capital markets, alongside a significant uptick in asset management revenues.
Jefferies Financial Group Inc. (JEF) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support