Jefferies Financial GroupJEF -6.72%86 Gross Margin % is 56.50% as of Feb. 2026, which is 8% above its 10-year median of 52.19. GuruFocus rates JEF with a GF Score™ of 86/100 and a GF Value™ of $57.93 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 617 Capital Markets companies, Jefferies Financial Group ranks better than 58.02% on this metric.
Jefferies Financial Group (NYSE:JEF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Jefferies Financial Group had a gross margin of 56.50% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Jefferies Financial Group Gross Margin % Related Terms
Jefferies Financial Group Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Capital Markets subindustry, Jefferies Financial Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Jefferies Financial Group Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Jefferies Financial Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Jefferies Financial Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Jefferies Financial Group (JEF) has a Gross Margin % of 56.50% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Jefferies Financial Group and its competitors. This is near median its historical median of 52.19. Over the past decade, Jefferies Financial Group's Gross Margin % has ranged from 17.34 to 60.61. According to the industry distribution chart, Jefferies Financial Group ranks #259 out of 617 companies in the Capital Markets industry, placing it in the top 42%.
Is Jefferies Financial Group's Gross Margin % too high?
Jefferies Financial Group's current Gross Margin % of 56.50% is near median its 10-year median of 52.19. Over the past 10 years, this metric has ranged from a low of 17.34 to a high of 60.61. The Capital Markets industry median Gross Margin % is 48.30. Jefferies Financial Group's value of 56.50% is 17% above this industry median. Based on the distribution chart, Jefferies Financial Group ranks #259 out of 617 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Jefferies Financial Group has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jefferies Financial Group's Gross Margin % compare to SF and BMNR?
According to the Capital Markets industry distribution chart, Jefferies Financial Group ranks #259 out of 617 companies for Gross Margin %. This puts Jefferies Financial Group in the upper half of its industry. The industry median Gross Margin % is 48.30. Jefferies Financial Group's value of 56.50% is 17% above this benchmark. Historically, Jefferies Financial Group's own Gross Margin % has ranged from 17.34 to 60.61 over the past decade. While the company's 10-year median is 52.19 vs. the industry median of 48.30, Jefferies Financial Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.30, based on 617 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jefferies Financial Group's current Gross Margin % of 56.50% is 17% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Jefferies Financial Group and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jefferies Financial Group's current Gross Margin % is 56.50%, which is near median its own 10-year median of 52.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jefferies Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Jefferies Financial Group (JEF) is currently considered Modestly Undervalued. The stock's GF Value™ is $57.93, compared to a current price of $49.10 — trading 15.2% below its estimated fair value. The current Gross Margin % is 56.50%, which is near median its 10-year median of 52.19 and 17% above the Capital Markets industry median of 48.30. Jefferies Financial Group's overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Jefferies Financial Group (JEF), the current Gross Margin % is 56.50% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Jefferies Financial Group (JEF) Overvalued in 2026?
Based on GuruFocus' analysis, Jefferies Financial Group stock appears to be undervalued.
The current stock price of $49.10 is trading 15.2% below its estimated GF Value™ of $57.93.
GuruFocus considers Jefferies Financial Group to be Modestly Undervalued.
Key valuation signals for JEF:
Gross Margin %: 56.50% (near median its 10-year median of 52.19)
GF Value™: $57.93 vs. price of $49.10 (15.2% below fair value)
Industry Position: 17% above the Capital Markets median (#259 of 617)
No single metric tells the full story. See the JEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jefferies Financial Group is a full-service investment banking and capital markets firm that was founded in 1962. After nearly 30 years of focusing on institutional trading services, it entered the investment banking industry in the early 1990s, which ultimately grew into the core business. In 2013, Jefferies merged with Leucadia, a manufacturing-focused holding company. Since merging, Jefferies became the core of the combined business as the bulk of the legacy portfolio was sold off and the parent company was renamed to match the subsidiary. Within the investment banking landscape, Jefferies predominately serves the North American middle market and has captured considerable market share over the past decade.
86GF Score
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