Jefferies Beneish M Score

JEF
 Stock
  

USD 35.55  0.36  1.00%   

This module uses fundamental data of Jefferies Financial to approximate the value of its Beneish M Score. Jefferies Financial M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please see Jefferies Financial Piotroski F Score and Jefferies Financial Altman Z Score analysis.
  
Jefferies Financial Debt Non Current is projected to decrease significantly based on the last few years of reporting. The past year's Debt Non Current was at 826.31 Million. Jefferies Financial Receivables Turnover is projected to drop based on the last few years of reporting. The past year's Receivables Turnover was at 2.32. The current year Accounts Payable Turnover is expected to grow to 12.68, whereas Long Term Debt to Equity is forecasted to decline to 0.68.
At this time, it appears that Jefferies Financial is an unlikely manipulator. The earnings manipulation may begin if Jefferies Financial's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Jefferies Financial executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Jefferies Financial's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.72
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.22Focus
Asset Quality0.46Focus
Expense Coverage1.31Focus
Gross Margin Strengs1.16Focus
Accruals Factor1.31Focus
Depreciation Resistance0.75Focus
Net Sales Growth0.8Focus
Financial Leverage Condition1.09Focus

Jefferies Financial Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Jefferies Financial's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense2.9 B2.7 B
Sufficiently Up
Increasing
Slightly volatile
Revenues9.1 B11.4 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables5.3 B5.4 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net699.8 M709.2 M
Fairly Down
Increasing
Very volatile
Operating Income956.5 M1.2 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current1.1 B953.4 M
Fairly Up
Decreasing
Slightly volatile
Current Liabilities9.2 B10.1 B
Significantly Down
Increasing
Stable
Total Liabilities32.3 B36.9 B
Fairly Down
Increasing
Slightly volatile
Investments Non Current3.4 B3.3 B
Sufficiently Up
Decreasing
Slightly volatile
Investments Current1.5 B1.9 B
Significantly Down
Increasing
Slightly volatile
Investments23.9 B22.6 B
Notably Up
Increasing
Slightly volatile
Gross Margin44.4738.3983
Fairly Up
Increasing
Stable
Depreciation Amortization and Accretion87.9 M64.8 M
Significantly Up
Decreasing
Slightly volatile
Debt Non CurrentB826.3 M
Fairly Up
Decreasing
Slightly volatile
Debt Current874 M957.1 M
Significantly Down
Increasing
Slightly volatile
Total Debt20.6 B18 B
Fairly Up
Increasing
Slightly volatile
Assets Non Current6.4 B6.1 B
Sufficiently Up
Decreasing
Slightly volatile
Current Assets13.4 B15 B
Moderately Down
Increasing
Slightly volatile
Total Assets41.6 B47.2 B
Fairly Down
Increasing
Slightly volatile

Jefferies Financial Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Jefferies Financial's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Jefferies Financial in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Jefferies Financial's degree of accounting gimmicks and manipulations.

About Jefferies Financial Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

3 Billion

Jefferies Financial Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 2.84 Billion

Jefferies Financial Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Jefferies Financial. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Trade and Non Trade Receivables3.83 B4.43 B5.42 B6.61 B7.84 B5.28 B
Revenues10.06 B11.44 B3.89 B6.01 B8.19 B9.12 B
Total Assets45.07 B47.17 B49.46 B53.12 B60.4 B41.57 B
Current Assets12.95 B14.96 B18.52 B21.37 B27.25 B13.38 B
Depreciation Amortization and Accretion172.07 M71.61 M64.76 M142.39 M151.17 M87.86 M
Selling General and Administrative Expense2.42 B2.49 B2.73 B4.02 B4.83 B2.86 B
Total Liabilities34.82 B36.94 B39.76 B43.59 B49.73 B32.27 B
Current Liabilities8.34 B10.13 B11.12 B12.37 B13.16 B9.21 B
Total Debt18.59 B15.72 B18.01 B31.32 B34.53 B20.56 B
Operating Income270.54 M1.2 B362.79 M1.23 B2.43 B956.53 M
Net Cash Flow from Operations608.85 M1.07 B(827.84 M)2.08 B1.57 B1.16 B
Investments24.72 B21.79 B22.56 B24.91 B29.22 B23.88 B
Gross Margin31.9238.491.7994.3794.2544.47

Jefferies Financial ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Jefferies Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Jefferies Financial's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Jefferies Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Jefferies Financial Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Jefferies Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Jefferies Financial Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York. Jefferies Financial operates under Capital Markets classification in the United States and is traded on New York Stock Exchange. It employs 5347 people.

Jefferies Financial Investors Sentiment

The influence of Jefferies Financial's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Jefferies. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Jefferies Financial's public news can be used to forecast risks associated with investment in Jefferies. The trend in average sentiment can be used to explain how an investor holding Jefferies can time the market purely based on public headlines and social activities around Jefferies Financial Group. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Jefferies Financial's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Jefferies Financial's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Jefferies Financial's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Jefferies Financial.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Jefferies Financial in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Jefferies Financial's short interest history, or implied volatility extrapolated from Jefferies Financial options trading.

Becoming a Better Investor with Macroaxis

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Please see Jefferies Financial Piotroski F Score and Jefferies Financial Altman Z Score analysis. Note that the Jefferies Financial information on this page should be used as a complementary analysis to other Jefferies Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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When running Jefferies Financial price analysis, check to measure Jefferies Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Jefferies Financial is operating at the current time. Most of Jefferies Financial's value examination focuses on studying past and present price action to predict the probability of Jefferies Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Jefferies Financial's price. Additionally, you may evaluate how the addition of Jefferies Financial to your portfolios can decrease your overall portfolio volatility.
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Is Jefferies Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Jefferies Financial. If investors know Jefferies will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Jefferies Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.48) 
Market Capitalization
8.2 B
Quarterly Revenue Growth YOY
(0.21) 
Return On Assets
0.0172
Return On Equity
0.0924
The market value of Jefferies Financial is measured differently than its book value, which is the value of Jefferies that is recorded on the company's balance sheet. Investors also form their own opinion of Jefferies Financial's value that differs from its market value or its book value, called intrinsic value, which is Jefferies Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Jefferies Financial's market value can be influenced by many factors that don't directly affect Jefferies Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Jefferies Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Jefferies Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jefferies Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.