JACK HENRY & ASSOCIATES INC (JKHY) Stock Fundamental Analysis
NASDAQ:JKHY - Nasdaq - US4262811015 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to JKHY. JKHY was compared to 101 industry peers in the Financial Services industry. JKHY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, JKHY is valued expensive at the moment. JKHY also has an excellent dividend rating. With these ratings, JKHY could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year JKHY was profitable.
In the past year JKHY had a positive cash flow from operations.
In the past 5 years JKHY has always been profitable.
In the past 5 years JKHY always reported a positive cash flow from operatings.
1.2 Ratios
JKHY's Return On Assets of 13.92% is amongst the best of the industry. JKHY outperforms 96.04% of its industry peers.
JKHY has a Return On Equity of 20.51%. This is amongst the best in the industry. JKHY outperforms 84.16% of its industry peers.
With an excellent Return On Invested Capital value of 16.32%, JKHY belongs to the best of the industry, outperforming 93.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JKHY is significantly above the industry average of 7.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 20.51% | ||
| ROIC | 16.32% |
ROA(3y)13.68%
ROA(5y)13.32%
ROE(3y)23.26%
ROE(5y)22.51%
ROIC(3y)17.33%
ROIC(5y)16.83%
1.3 Margins
Looking at the Profit Margin, with a value of 17.82%, JKHY is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
JKHY's Profit Margin has been stable in the last couple of years.
The Operating Margin of JKHY (22.52%) is better than 66.34% of its industry peers.
In the last couple of years the Operating Margin of JKHY has remained more or less at the same level.
The Gross Margin of JKHY (41.42%) is better than 64.36% of its industry peers.
In the last couple of years the Gross Margin of JKHY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.52% | ||
| PM (TTM) | 17.82% | ||
| GM | 41.42% |
OM growth 3Y-0.71%
OM growth 5Y-0.25%
PM growth 3Y-0.92%
PM growth 5Y-0.32%
GM growth 3Y1.52%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
JKHY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for JKHY remains at a similar level compared to 1 year ago.
JKHY has less shares outstanding than it did 5 years ago.
JKHY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.97 indicates that JKHY is not in any danger for bankruptcy at the moment.
JKHY has a better Altman-Z score (10.97) than 97.03% of its industry peers.
The Debt to FCF ratio of JKHY is 0.51, which is an excellent value as it means it would take JKHY, only 0.51 years of fcf income to pay off all of its debts.
JKHY has a better Debt to FCF ratio (0.51) than 87.13% of its industry peers.
JKHY has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
JKHY's Debt to Equity ratio of 0.03 is amongst the best of the industry. JKHY outperforms 84.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 10.97 |
ROIC/WACC1.83
WACC8.93%
2.3 Liquidity
JKHY has a Current Ratio of 1.17. This is a normal value and indicates that JKHY is financially healthy and should not expect problems in meeting its short term obligations.
JKHY has a Current ratio of 1.17. This is comparable to the rest of the industry: JKHY outperforms 58.42% of its industry peers.
A Quick Ratio of 1.17 indicates that JKHY should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.17, JKHY is doing good in the industry, outperforming 61.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
JKHY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.41%, which is quite good.
Measured over the past years, JKHY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.20% on average per year.
JKHY shows a small growth in Revenue. In the last year, the Revenue has grown by 5.23%.
Measured over the past years, JKHY shows a small growth in Revenue. The Revenue has been growing by 7.37% on average per year.
EPS 1Y (TTM)8.41%
EPS 3Y8.21%
EPS 5Y8.2%
EPS Q2Q%6.35%
Revenue 1Y (TTM)5.23%
Revenue growth 3Y8.01%
Revenue growth 5Y7.37%
Sales Q2Q%5.16%
3.2 Future
JKHY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.69% yearly.
The Revenue is expected to grow by 7.17% on average over the next years.
EPS Next Y14%
EPS Next 2Y11.18%
EPS Next 3Y10.12%
EPS Next 5Y12.69%
Revenue Next Year6.99%
Revenue Next 2Y7.13%
Revenue Next 3Y7.02%
Revenue Next 5Y7.17%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.02 indicates a quite expensive valuation of JKHY.
Based on the Price/Earnings ratio, JKHY is valued a bit more expensive than 69.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of JKHY to the average of the S&P500 Index (28.29), we can say JKHY is valued inline with the index average.
JKHY is valuated quite expensively with a Price/Forward Earnings ratio of 26.63.
Based on the Price/Forward Earnings ratio, JKHY is valued a bit more expensive than the industry average as 70.30% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of JKHY to the average of the S&P500 Index (21.08), we can say JKHY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.02 | ||
| Fwd PE | 26.63 |
4.2 Price Multiples
JKHY's Enterprise Value to EBITDA ratio is in line with the industry average.
JKHY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.39 | ||
| EV/EBITDA | 17.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JKHY does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of JKHY may justify a higher PE ratio.
PEG (NY)2.21
PEG (5Y)3.78
EPS Next 2Y11.18%
EPS Next 3Y10.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, JKHY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.63, JKHY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.57, JKHY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of JKHY is nicely growing with an annual growth rate of 6.79%!
JKHY has been paying a dividend for at least 10 years, so it has a reliable track record.
JKHY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.79%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
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.
DP39.57%
EPS Next 2Y11.18%
EPS Next 3Y10.12%
171.83
-0.05 (-0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners99.84%
Inst Owner Change0.02%
Ins Owners0.5%
Ins Owner Change-0.84%
Market Cap12.53B
Analysts69.6
Price Target195.11 (13.55%)
Short Float %3.89%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend2.14
Dividend Growth(5Y)6.79%
DP39.57%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.5%
Min EPS beat(2)-0.54%
Max EPS beat(2)-0.45%
EPS beat(4)2
Avg EPS beat(4)0.45%
Min EPS beat(4)-0.54%
Max EPS beat(4)2.75%
EPS beat(8)5
Avg EPS beat(8)3.11%
EPS beat(12)8
Avg EPS beat(12)3.21%
EPS beat(16)12
Avg EPS beat(16)4.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)-1.82%
Revenue beat(4)0
Avg Revenue beat(4)-2.32%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-1.82%
Revenue beat(8)1
Avg Revenue beat(8)-1.18%
Revenue beat(12)1
Avg Revenue beat(12)-1.53%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)0.24%
PT rev (3m)-0.85%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-1.05%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.02 | ||
| Fwd PE | 26.63 | ||
| P/S | 5.51 | ||
| P/FCF | 42.39 | ||
| P/OCF | 23.37 | ||
| P/B | 6.34 | ||
| P/tB | 25.54 | ||
| EV/EBITDA | 17.69 |
EPS(TTM)5.54
EY3.22%
EPS(NY)6.45
Fwd EY3.76%
FCF(TTM)4.05
FCFY2.36%
OCF(TTM)7.35
OCFY4.28%
SpS31.18
BVpS27.1
TBVpS6.73
PEG (NY)2.21
PEG (5Y)3.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.92% | ||
| ROE | 20.51% | ||
| ROCE | 21.21% | ||
| ROIC | 16.32% | ||
| ROICexc | 16.5% | ||
| ROICexgc | 43.61% | ||
| OM | 22.52% | ||
| PM (TTM) | 17.82% | ||
| GM | 41.42% | ||
| FCFM | 13% |
ROA(3y)13.68%
ROA(5y)13.32%
ROE(3y)23.26%
ROE(5y)22.51%
ROIC(3y)17.33%
ROIC(5y)16.83%
ROICexc(3y)17.62%
ROICexc(5y)17.48%
ROICexgc(3y)50.13%
ROICexgc(5y)50.67%
ROCE(3y)22.52%
ROCE(5y)21.86%
ROICexcg growth 3Y-1.52%
ROICexcg growth 5Y-1.79%
ROICexc growth 3Y-1.14%
ROICexc growth 5Y0.28%
OM growth 3Y-0.71%
OM growth 5Y-0.25%
PM growth 3Y-0.92%
PM growth 5Y-0.32%
GM growth 3Y1.52%
GM growth 5Y0.39%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.51 | ||
| Debt/EBITDA | 0.08 | ||
| Cap/Depr | 118.41% | ||
| Cap/Sales | 10.57% | ||
| Interest Coverage | 38.48 | ||
| Cash Conversion | 74.95% | ||
| Profit Quality | 72.93% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 10.97 |
F-Score6
WACC8.93%
ROIC/WACC1.83
Cap/Depr(3y)110.86%
Cap/Depr(5y)105.14%
Cap/Sales(3y)10.1%
Cap/Sales(5y)9.95%
Profit Quality(3y)73.94%
Profit Quality(5y)86.35%
High Growth Momentum
Growth
EPS 1Y (TTM)8.41%
EPS 3Y8.21%
EPS 5Y8.2%
EPS Q2Q%6.35%
EPS Next Y14%
EPS Next 2Y11.18%
EPS Next 3Y10.12%
EPS Next 5Y12.69%
Revenue 1Y (TTM)5.23%
Revenue growth 3Y8.01%
Revenue growth 5Y7.37%
Sales Q2Q%5.16%
Revenue Next Year6.99%
Revenue Next 2Y7.13%
Revenue Next 3Y7.02%
Revenue Next 5Y7.17%
EBIT growth 1Y5.73%
EBIT growth 3Y7.25%
EBIT growth 5Y7.1%
EBIT Next Year53.05%
EBIT Next 3Y20.6%
EBIT Next 5Y17.93%
FCF growth 1Y-4.11%
FCF growth 3Y3.32%
FCF growth 5Y5.21%
OCF growth 1Y7.63%
OCF growth 3Y7.12%
OCF growth 5Y5.67%