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. Finally 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.
In the past year JKHY had a positive cash flow from operations.
JKHY had positive earnings in each of the past 5 years.
JKHY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
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 has a better Return On Equity (20.51%) than 86.14% 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.
The Average Return On Invested Capital over the past 3 years for JKHY is significantly above the industry average of 7.75%.
| 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
JKHY has a better Profit Margin (17.82%) than 68.32% of its industry peers.
In the last couple of years the Profit Margin of JKHY has remained more or less at the same level.
Looking at the Operating Margin, with a value of 22.52%, JKHY is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
In the last couple of years the Operating Margin of JKHY has remained more or less at the same level.
JKHY's Gross Margin of 41.42% is fine compared to the rest of the industry. JKHY outperforms 63.37% of its industry peers.
JKHY's Gross Margin has been stable in the last couple of years.
| 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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, JKHY has about the same amount of shares outstanding.
Compared to 5 years ago, JKHY has less shares outstanding
The debt/assets ratio for JKHY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.82 indicates that JKHY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.82, 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.
The Debt to Equity ratio of JKHY (0.03) is better than 86.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 10.82 |
ROIC/WACC1.02
WACC15.93%
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 59.41% of its industry peers.
A Quick Ratio of 1.17 indicates that JKHY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, JKHY is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.41% over the past year.
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.
Looking at the last year, JKHY shows a small growth in Revenue. The Revenue has grown by 5.23% in the last year.
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
The Earnings Per Share is expected to grow by 12.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.17% on average over the next years.
EPS Next Y14.09%
EPS Next 2Y11.26%
EPS Next 3Y10.22%
EPS Next 5Y12.69%
Revenue Next Year6.99%
Revenue Next 2Y7.13%
Revenue Next 3Y7.08%
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
A Price/Earnings ratio of 30.89 indicates a quite expensive valuation of JKHY.
Based on the Price/Earnings ratio, JKHY is valued a bit more expensive than the industry average as 63.37% of the companies are valued more cheaply.
JKHY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 26.48, JKHY can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, JKHY is valued a bit more expensive than 68.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of JKHY to the average of the S&P500 Index (22.68), we can say JKHY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.89 | ||
| Fwd PE | 26.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as JKHY.
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 | 42.21 | ||
| EV/EBITDA | 17.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JKHY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)3.77
EPS Next 2Y11.26%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, JKHY has a reasonable but not impressive dividend return.
JKHY's Dividend Yield is a higher than the industry average which is at 3.84.
With a Dividend Yield of 1.36, JKHY pays less dividend than the S&P500 average, which is at 2.29.
| 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 2Y11.26%
EPS Next 3Y10.22%
171.13
+2.43 (+1.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.59%
Inst Owner Change3.94%
Ins Owners0.51%
Ins Owner Change0.52%
Market Cap12.48B
Analysts71.2
Price Target193.58 (13.12%)
Short Float %3.45%
Short Ratio4.23
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)-1.63%
PT rev (3m)2.12%
EPS NQ rev (1m)-0.86%
EPS NQ rev (3m)2.92%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.89 | ||
| Fwd PE | 26.48 | ||
| P/S | 5.49 | ||
| P/FCF | 42.21 | ||
| P/OCF | 23.28 | ||
| P/B | 6.31 | ||
| P/tB | 25.43 | ||
| EV/EBITDA | 17.37 |
EPS(TTM)5.54
EY3.24%
EPS(NY)6.46
Fwd EY3.78%
FCF(TTM)4.05
FCFY2.37%
OCF(TTM)7.35
OCFY4.3%
SpS31.18
BVpS27.1
TBVpS6.73
PEG (NY)2.19
PEG (5Y)3.77
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 | 10.82 |
F-Score6
WACC15.93%
ROIC/WACC1.02
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 Y14.09%
EPS Next 2Y11.26%
EPS Next 3Y10.22%
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 3Y7.08%
Revenue Next 5Y7.17%
EBIT growth 1Y5.73%
EBIT growth 3Y7.25%
EBIT growth 5Y7.1%
EBIT Next Year53.65%
EBIT Next 3Y21.47%
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%