Jefferies Financial Group Performance Compared with Rivals
The performance of Jefferies Financial Group Inc (NYSE:JEF) reveals a Return on Invested Capital (ROIC) of 9.52% combined with a Weighted Average Cost of Capital (WACC) of 32.89%. This results in a ROIC to WACC ratio of 0.29, indicating inefficiencies in generating returns above its capital costs.
In contrast, Raymond James Financial (RJF) boasts a more favorable ROIC to WACC ratio of 1.31, suggesting efficient capital utilization. Similarly, Louisiana-Pacific Corporation (LPX) stands out with a remarkable ROIC to WACC ratio of 1.43, showcasing its ability to create value and maintain operational efficiency.
While Jefferies faces competition from notable firms such as Evercore (EVR) and Stifel Financial Corp (SF), it is crucial for investors to understand these metrics to evaluate their investment strategies. The financial sector remains competitive, and efficient capital management will differentiate successful companies in the market.