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JCAP

JCAP

JCAP
$19.54USD↓-0.61%-0.12 today

MARKET CAP

1.2B

P/E (TTM)

1.2x

FWD P/E

—

DAY RANGE

$19 – $20

52W RANGE

$16
$24

AI Summary

Stalk
Buy NowMedium

The asset is in an early Stage 1 consolidation with a higher-low and an active Bearish Exhaustion candle signaling sellers losing control, increasing the odds of a bottoming bounce. Price is now pulling back into the rising 9/21 EMAs and the lower range boundary, offering a structurally sound entry zone. Medium-term directional asymmetry is bullish in line with the long-term uptrend, and short-term timing favors buy execution now on support. Overall, Buy Now is recommended with medium confidence.

  • ↑Q1 revenue $176 M (+14% YoY) with record collections of $310 M (+19%).
  • ↑Quarterly dividend of $0.24/sh yields 4.93% alongside a $59 M buyback (~5% shares).
  • ↓Operating expenses rose 47% YoY to $96 M, pressuring profit margins.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Jefferson Capital (NASDAQ: JCAP) is a leading consumer asset management company that specializes in the acquisition and servicing of charged-off and insolvency portfolios across various sectors. The company is strategically positioned to capitalize on macroeconomic trends within a landscape characterized by rising consumer delinquencies and increasing insolvency rates. By focusing on operational efficiency and leveraging market insights, Jefferson Capital aims to navigate economic challenges while enhancing its portfolio performance and growth opportunities.

Bull says

  • ↑Q1 revenue $176 M (+14% YoY) with record collections of $310 M (+19%).
  • ↑Quarterly dividend of $0.24/sh yields 4.93% alongside a $59 M buyback (~5% shares).
  • ↑Estimated remaining collections of $3.4 B (+18%) support strong future cash flows.
  • ↑Cash efficiency ratio 72.2% and high earnings yield indicate operational strength.
  • ↑Leverage ratio ~1.6x provides balance sheet flexibility for acquisitions.
  • ↑Auto-finance focus and robust market position offer a long growth runway.

Bear says

  • ↓Operating expenses rose 47% YoY to $96 M, pressuring profit margins.
  • ↓Court costs jumped 86% YoY to $17.3 M, increasing legal collection expenses.
  • ↓Net income declined 41% YoY to $37.6 M despite revenue growth.
  • ↓Negative analyst revisions and weak momentum signal lower earnings expectations.
  • ↓High short interest and low liquidity may exert downward share pressure.
  • ↓Consumer savings at $857 B suggest limited buffer against delinquencies.

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-20-2026neutral

Transcript signals

Bull points

  • revenue was $176 million, up 14% year-over-year, driven by continued strong deployments and higher net yields.
  • Adjusted pre-tax income was $58 million for the quarter, resulting in an adjusted pre-tax ROE of 50.8%.
  • adjusted cash EBITDA to $235 million for the quarter, up 12% year-over-year.

Bear points

  • Operating expenses were $96 million, up 47% year-over-year, with an increase due to the significant growth in collections.
  • Court costs increased to $17.3 million, or 86% year-over-year, as a result of the trends in increased legal channel volumes that David reviewed in his comments.
  • Delinquency trends remained elevated across all non-mortgage consumer asset classes and create favorable portfolio supply trends.
Read full transcript analysis ›