Jefferies Financial Group Inc. (NYSE:JEF) has a Return on Invested Capital (ROIC) of 9.52% and a Weighted Average Cost of Capital (WACC) of 32.89%, resulting in a ROIC to WACC ratio of 0.29.
Raymond James Financial, Inc. (RJF) shows a more favorable ROIC to WACC ratio of 1.31, indicating efficient capital use.
Louisiana-Pacific Corporation (LPX) stands out with the highest ROIC to WACC ratio of 1.43, suggesting strong value creation and operational efficiency.
Jefferies Financial Group Inc. (NYSE:JEF) is a diversified financial services company that operates in investment banking, asset management, and direct investing. It competes with firms like Raymond James Financial, Inc. (RJF), Evercore Inc. (EVR), Stifel Financial Corp. (SF), and Lazard Ltd (LAZ). These companies are key players in the financial services industry, each with unique strengths and market positions.
Jefferies Financial Group Inc. has a Return on Invested Capital (ROIC) of 9.52% and a Weighted Average Cost of Capital (WACC) of 32.89%, resulting in a ROIC to WACC ratio of 0.29. This indicates that JEF’s returns are significantly lower than its cost of capital, suggesting inefficiencies in generating value over its cost of capital. This is a critical metric for investors as it highlights the company’s ability to generate returns relative to its capital costs.
In comparison, Raymond James Financial, Inc. (RJF) shows a more favorable ROIC to WACC ratio of 1.31, with a ROIC of 16.52% and a WACC of 12.65%. This suggests that RJF is generating returns well above its cost of capital, indicating efficient capital use. Similarly, Evercore Inc. (EVR) has a ROIC to WACC ratio of 0.66, with a ROIC of 6.25% and a WACC of 9.45%, showing moderate efficiency.
Stifel Financial Corp. (SF) has a ROIC to WACC ratio of 0.13, with a ROIC of 1.95% and a WACC of 15.13%. This indicates lower efficiency in generating returns over its cost of capital, similar to Jefferies. Lazard Ltd (LAZ) presents a ROIC to WACC ratio of 0.96, with a ROIC of 7.16% and a WACC of 7.49%, suggesting a near break-even point in terms of capital efficiency.
Louisiana-Pacific Corporation (LPX) stands out with the highest ROIC to WACC ratio of 1.43, with a ROIC of 17.31% and a WACC of 12.10%. This indicates that LPX is generating returns significantly above its cost of capital, suggesting strong value creation and operational efficiency. Among the peers, LPX demonstrates the most efficient use of capital, highlighting its strong performance in the industry.
