Uncovering Dividend Opportunities with JACK HENRY & ASSOCIATES INC (NASDAQ:JKHY).

Discover JACK HENRY & ASSOCIATES INC (NASDAQ:JKHY)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. JKHY showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

A Closer Look at Dividend for JKHY

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. JKHY has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 4.05, JKHY pays a bit more dividend than its industry peers.
• 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.
• 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.

How We Gauge Health for JKHY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. JKHY was assigned a score of 8 for health:

• An Altman-Z score of 11.13 indicates that JKHY is not in any danger for bankruptcy at the moment.
• The Altman-Z score of JKHY (11.13) is better than 95.05% 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 Debt to FCF ratio of 0.51. This is amongst the best in the industry. JKHY outperforms 89.11% 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 86.14% of its industry peers.
• JKHY has a better Quick ratio (1.17) than 60.40% of its industry peers.

How do we evaluate the Profitability for JKHY?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, JKHY has achieved a 8:

• The Return On Assets of JKHY (13.92%) is better than 95.05% of its industry peers.
• JKHY's Return On Equity of 20.51% is amongst the best of the industry. JKHY outperforms 82.18% of its industry peers.
• JKHY has a better Return On Invested Capital (16.32%) than 93.07% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for JKHY is significantly above the industry average of 7.49%.
• JKHY has a Profit Margin of 17.82%. This is in the better half of the industry: JKHY outperforms 66.34% of its industry peers.
• JKHY has a better Operating Margin (22.52%) than 66.34% of its industry peers.
• The Gross Margin of JKHY (41.42%) is better 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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.