JACK HENRY & ASSOCIATES INC (JKHY)
US4262811015 - Common Stock
Overall JKHY gets a fundamental rating of 7 out of 10. We evaluated JKHY against 99 industry peers in the Financial Services industry. JKHY gets an excellent profitability rating and is at the same time showing great financial health properties. JKHY is valied quite expensively at the moment, while it does show a decent growth rate. 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
JKHY had positive earnings in the past year.
JKHY had a positive operating cash flow in the past year.
Each year in the past 5 years JKHY has been profitable.
JKHY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.64%, JKHY belongs to the top of the industry, outperforming 94.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.74%, JKHY belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.58%, JKHY belongs to the best of the industry, outperforming 92.93% 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 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.64% | ||
| ROE | 20.74% | ||
| ROIC | 16.58% |
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 17.79%, JKHY is in the better half of the industry, outperforming 68.69% of the companies in the same industry.
In the last couple of years the Profit Margin of JKHY has remained more or less at the same level.
JKHY has a better Operating Margin (22.63%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of JKHY has remained more or less at the same level.
Looking at the Gross Margin, with a value of 41.21%, JKHY is in the better half of the industry, outperforming 64.65% of the companies in the same industry.
JKHY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.63% | ||
| PM (TTM) | 17.79% | ||
| GM | 41.21% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so JKHY is creating value.
JKHY has about the same amout of shares outstanding than it did 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
JKHY has an Altman-Z score of 10.59. This indicates that JKHY is financially healthy and has little risk of bankruptcy at the moment.
JKHY has a better Altman-Z score (10.59) than 93.94% of its industry peers.
JKHY has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
JKHY's Debt to FCF ratio of 0.48 is amongst the best of the industry. JKHY outperforms 86.87% 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 has a better Debt to Equity ratio (0.03) than 85.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 10.59 |
ROIC/WACC1.81
WACC9.15%
2.3 Liquidity
A Current Ratio of 1.11 indicates that JKHY should not have too much problems paying its short term obligations.
The Current ratio of JKHY (1.11) is comparable to the rest of the industry.
A Quick Ratio of 1.11 indicates that JKHY should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, JKHY perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
The current and quick ratio evaluation for JKHY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
JKHY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.30%, which is quite good.
JKHY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
The Revenue has been growing slightly by 5.91% in the past year.
The Revenue has been growing slightly by 7.37% on average over the past years.
EPS 1Y (TTM)10.3%
EPS 3Y8.21%
EPS 5Y8.2%
EPS Q2Q%17.27%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y8.01%
Revenue growth 5Y7.37%
Sales Q2Q%5.18%
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 Y14.21%
EPS Next 2Y11.13%
EPS Next 3Y10.24%
EPS Next 5Y12.69%
Revenue Next Year6.99%
Revenue Next 2Y7.13%
Revenue Next 3Y7.11%
Revenue Next 5Y7.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.37, the valuation of JKHY can be described as expensive.
JKHY's Price/Earnings ratio is a bit more expensive when compared to the industry. JKHY is more expensive than 66.67% of the companies in the same industry.
JKHY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.42, the valuation of JKHY can be described as expensive.
Based on the Price/Forward Earnings ratio, JKHY is valued a bit more expensive than 71.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. JKHY is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 27.42 |
4.2 Price Multiples
JKHY's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JKHY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.61 | ||
| EV/EBITDA | 18.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of JKHY may justify a higher PE ratio.
PEG (NY)2.28
PEG (5Y)3.95
EPS Next 2Y11.13%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
JKHY has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.76, JKHY pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.25, JKHY pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
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.
Dividend Growth(5Y)6.79%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
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.
DP39.59%
EPS Next 2Y11.13%
EPS Next 3Y10.24%
JACK HENRY & ASSOCIATES INC
NASDAQ:JKHY (12/20/2024, 8:20:19 PM)
After market: 176.74 0 (0%)176.74
+0.75 (+0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.59%
Inst Owner Change2.07%
Ins Owners0.51%
Ins Owner Change1.54%
Market Cap12.89B
Analysts73.04
Price Target196.78 (11.34%)
Short Float %3.75%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Dividend Growth(5Y)6.79%
DP39.59%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.1%
Min EPS beat(2)-0.54%
Max EPS beat(2)2.75%
EPS beat(4)3
Avg EPS beat(4)2.71%
Min EPS beat(4)-0.54%
Max EPS beat(4)8.58%
EPS beat(8)5
Avg EPS beat(8)2.76%
EPS beat(12)9
Avg EPS beat(12)4.31%
EPS beat(16)13
Avg EPS beat(16)4.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-1.82%
Revenue beat(4)0
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-1.05%
Revenue beat(8)1
Avg Revenue beat(8)-1.37%
Revenue beat(12)2
Avg Revenue beat(12)-1.04%
Revenue beat(16)2
Avg Revenue beat(16)-1.44%
PT rev (1m)3.81%
PT rev (3m)6%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0.71%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.37 | ||
| Fwd PE | 27.42 | ||
| P/S | 5.74 | ||
| P/FCF | 44.61 | ||
| P/OCF | 24.43 | ||
| P/B | 6.7 | ||
| P/tB | 29.05 | ||
| EV/EBITDA | 18.32 |
EPS(TTM)5.46
EY3.09%
EPS(NY)6.45
Fwd EY3.65%
FCF(TTM)3.96
FCFY2.24%
OCF(TTM)7.23
OCFY4.09%
SpS30.77
BVpS26.38
TBVpS6.08
PEG (NY)2.28
PEG (5Y)3.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.64% | ||
| ROE | 20.74% | ||
| ROCE | 21.54% | ||
| ROIC | 16.58% | ||
| ROICexc | 16.89% | ||
| ROICexgc | 46.91% | ||
| OM | 22.63% | ||
| PM (TTM) | 17.79% | ||
| GM | 41.21% | ||
| FCFM | 12.88% |
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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 118.73% | ||
| Cap/Sales | 10.63% | ||
| Interest Coverage | 36.69 | ||
| Cash Conversion | 74.44% | ||
| Profit Quality | 72.39% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 10.59 |
F-Score5
WACC9.15%
ROIC/WACC1.81
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)10.3%
EPS 3Y8.21%
EPS 5Y8.2%
EPS Q2Q%17.27%
EPS Next Y14.21%
EPS Next 2Y11.13%
EPS Next 3Y10.24%
EPS Next 5Y12.69%
Revenue 1Y (TTM)5.91%
Revenue growth 3Y8.01%
Revenue growth 5Y7.37%
Sales Q2Q%5.18%
Revenue Next Year6.99%
Revenue Next 2Y7.13%
Revenue Next 3Y7.11%
Revenue Next 5Y7.17%
EBIT growth 1Y7.46%
EBIT growth 3Y7.25%
EBIT growth 5Y7.1%
EBIT Next Year50.57%
EBIT Next 3Y21.67%
EBIT Next 5Y17.93%
FCF growth 1Y-15.75%
FCF growth 3Y3.32%
FCF growth 5Y5.21%
OCF growth 1Y-1.32%
OCF growth 3Y7.12%
OCF growth 5Y5.67%