Is NASDAQ:JKHY suited for dividend investing?

Consider JACK HENRY & ASSOCIATES INC (NASDAQ:JKHY) as a top pick for dividend investors, identified by our stock screening tool. NASDAQ:JKHY shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Deciphering NASDAQ:JKHY's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NASDAQ:JKHY has achieved a 7 out of 10:

• JKHY's Dividend Yield is a higher than the industry average which is at 3.83.
• 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 39.57% of the earnings are spent on dividend by JKHY. This is a low number and sustainable payout ratio.
• JKHY's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Understanding NASDAQ:JKHY's Health Score

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:JKHY has earned a 8 out of 10:

• JKHY has an Altman-Z score of 10.76. This indicates that JKHY is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 10.76, JKHY belongs to the top of the industry, outperforming 94.06% of the companies in the same industry.
• JKHY has a debt to FCF ratio of 0.51. This is a very positive value and a sign of high solvency as it would only need 0.51 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.51, JKHY belongs to the top of the industry, outperforming 88.12% of the companies in the same industry.
• JKHY has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
• JKHY has a better Debt to Equity ratio (0.03) than 86.14% of its industry peers.
• JKHY has a Quick ratio of 1.17. This is in the better half of the industry: JKHY outperforms 60.40% of its industry peers.

A Closer Look at Profitability for NASDAQ:JKHY

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:JKHY has earned a 8 out of 10:

• JKHY has a Return On Assets of 13.92%. This is amongst the best in the industry. JKHY outperforms 95.05% of its industry peers.
• JKHY's Return On Equity of 20.51% is amongst the best of the industry. JKHY outperforms 86.14% of its industry peers.
• The Return On Invested Capital of JKHY (16.32%) is better than 93.07% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for JKHY is significantly above the industry average of 7.75%.
• JKHY has a Profit Margin of 17.82%. This is in the better half of the industry: JKHY outperforms 68.32% of its industry peers.
• JKHY's Operating Margin of 22.52% is fine compared to the rest of the industry. JKHY outperforms 67.33% of its industry peers.
• JKHY has a better Gross Margin (41.42%) than 63.37% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of JKHY for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.