Analyzing NASDAQ:JKHY's Dividend Potential.

Our stock screener has spotted JACK HENRY & ASSOCIATES INC (NASDAQ:JKHY) as a good dividend stock with solid fundamentals. NASDAQ:JKHY shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Analyzing Dividend Metrics

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NASDAQ:JKHY earns a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.57, JKHY pays a bit more dividend than its industry peers.
• On average, the dividend of JKHY grows each year by 6.79%, which is quite nice.
• JKHY has paid a dividend for at least 10 years, which is a reliable track record.
• JKHY has not decreased their dividend for at least 10 years, which is a reliable track record.
• JKHY pays out 39.59% of its income as dividend. This is a sustainable payout ratio.
• JKHY's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Understanding NASDAQ:JKHY's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:JKHY has earned a 9 out of 10:

• An Altman-Z score of 10.68 indicates that JKHY is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 10.68, JKHY belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
• The Debt to FCF ratio of JKHY is 0.48, which is an excellent value as it means it would take JKHY, only 0.48 years of fcf income to pay off all of its debts.
• JKHY has a Debt to FCF ratio of 0.48. This is amongst the best in the industry. JKHY outperforms 86.87% of its industry peers.
• A Debt/Equity ratio of 0.03 indicates that JKHY is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.03, JKHY belongs to the top of the industry, outperforming 85.86% of the companies in the same industry.
• JKHY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Exploring NASDAQ:JKHY's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:JKHY, the assigned 8 is noteworthy for profitability:

• JKHY's Return On Assets of 13.64% is amongst the best of the industry. JKHY outperforms 94.95% of its industry peers.
• JKHY has a better Return On Equity (20.74%) than 84.85% of its industry peers.
• The Return On Invested Capital of JKHY (16.58%) is better than 92.93% of its industry peers.
• JKHY had an Average Return On Invested Capital over the past 3 years of 17.33%. This is significantly above the industry average of 7.84%.
• JKHY has a better Profit Margin (17.79%) than 68.69% of its industry peers.
• Looking at the Operating Margin, with a value of 22.63%, JKHY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• JKHY's Gross Margin of 41.21% is fine compared to the rest of the industry. JKHY outperforms 64.65% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of JKHY

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.