JACK HENRY & ASSOCIATES INC (JKHY) Stock Fundamental Analysis
NASDAQ:JKHY - Nasdaq - US4262811015 - Common Stock
Overall JKHY gets a fundamental rating of 7 out of 10. We evaluated JKHY against 101 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 quite expensive at the moment. It does show a decent growth rate. JKHY also has an excellent dividend rating. This makes JKHY very considerable 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.
JKHY had positive earnings in each of the past 5 years.
In the past 5 years JKHY always reported a positive cash flow from operatings.
1.2 Ratios
JKHY has a Return On Assets of 13.64%. This is amongst the best in the industry. JKHY outperforms 95.05% of its industry peers.
Looking at the Return On Equity, with a value of 20.74%, JKHY belongs to the top of the industry, outperforming 85.15% of the companies in the same industry.
The Return On Invested Capital of JKHY (16.58%) 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 7.84%.
| 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
JKHY's Profit Margin of 17.79% is fine compared to the rest of the industry. JKHY outperforms 69.31% 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 22.63%, 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 has a better Gross Margin (41.21%) 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 | 22.63% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), JKHY is creating value.
JKHY has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for JKHY has been reduced compared to 5 years ago.
JKHY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.43 indicates that JKHY is not in any danger for bankruptcy at the moment.
The Altman-Z score of JKHY (10.43) is better than 94.06% 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.
The Debt to FCF ratio of JKHY (0.48) is better 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 86.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 10.43 |
ROIC/WACC1.8
WACC9.19%
2.3 Liquidity
JKHY has a Current Ratio of 1.11. This is a normal value and indicates that JKHY is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.11, JKHY perfoms like the industry average, outperforming 56.44% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that JKHY should not have too much problems paying its short term obligations.
JKHY's Quick ratio of 1.11 is in line compared to the rest of the industry. JKHY outperforms 57.43% of its industry peers.
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.
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 5.91%.
JKHY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.37% yearly.
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
Based on estimates for the next years, JKHY will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.69% on average per year.
Based on estimates for the next years, JKHY will show a small growth in Revenue. The Revenue will grow by 7.17% on average per year.
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.
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
JKHY is valuated quite expensively with a Price/Earnings ratio of 32.01.
Compared to the rest of the industry, the Price/Earnings ratio of JKHY indicates a slightly more expensive valuation: JKHY is more expensive than 64.36% of the companies listed 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 27.11.
JKHY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. JKHY is more expensive than 71.29% of the companies in the same industry.
JKHY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.01 | ||
| Fwd PE | 27.11 |
4.2 Price Multiples
JKHY's Enterprise Value to EBITDA ratio is in line with the industry average.
JKHY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.1 | ||
| EV/EBITDA | 17.95 |
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.
JKHY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.25
PEG (5Y)3.9
EPS Next 2Y11.13%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
JKHY has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
JKHY's Dividend Yield is a higher than the industry average which is at 3.66.
With a Dividend Yield of 1.28, JKHY pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of JKHY grows each year by 6.79%, which is quite nice.
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
39.59% 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.
DP39.59%
EPS Next 2Y11.13%
EPS Next 3Y10.24%
JACK HENRY & ASSOCIATES INC
NASDAQ:JKHY (1/21/2025, 8:09:39 PM)
After market: 174.75 0 (0%)174.75
+1.59 (+0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners95.59%
Inst Owner Change0.13%
Ins Owners0.51%
Ins Owner Change1.45%
Market Cap12.75B
Analysts73.04
Price Target196.78 (12.61%)
Short Float %3.19%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend2.14
Dividend Growth(5Y)6.79%
DP39.59%
Div Incr Years21
Div Non Decr Years34
Ex-DateN/A
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)0%
PT rev (3m)5.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0%
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)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.01 | ||
| Fwd PE | 27.11 | ||
| P/S | 5.68 | ||
| P/FCF | 44.1 | ||
| P/OCF | 24.15 | ||
| P/B | 6.62 | ||
| P/tB | 28.72 | ||
| EV/EBITDA | 17.95 |
EPS(TTM)5.46
EY3.12%
EPS(NY)6.45
Fwd EY3.69%
FCF(TTM)3.96
FCFY2.27%
OCF(TTM)7.23
OCFY4.14%
SpS30.77
BVpS26.38
TBVpS6.08
PEG (NY)2.25
PEG (5Y)3.9
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 | 10.43 |
F-Score5
WACC9.19%
ROIC/WACC1.8
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 Year53.92%
EBIT Next 3Y21.54%
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%