Why the dividend investor may take a look at JACK HENRY & ASSOCIATES INC (NASDAQ:JKHY).

Unearth the potential of JACK HENRY & ASSOCIATES INC (NASDAQ:JKHY) as a dividend stock recommended by our stock screening tool. JKHY maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Examination for JKHY

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. JKHY scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.28, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• JKHY pays out 39.57% of its income as dividend. This is a sustainable payout ratio.
• The dividend of JKHY is growing, but earnings are growing more, so the dividend growth is sustainable.

What does the Health looks like for JKHY

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. JKHY scores a 8 out of 10:

• An Altman-Z score of 10.86 indicates that JKHY is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 10.86, JKHY belongs to the top of the industry, outperforming 97.03% of the companies in the same industry.
• 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.
• Looking at the Debt to FCF ratio, with a value of 0.51, JKHY belongs to the top of the industry, outperforming 87.13% 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.
• JKHY's Debt to Equity ratio of 0.03 is amongst the best of the industry. JKHY outperforms 85.15% of its industry peers.
• Looking at the Quick ratio, with a value of 1.17, JKHY is in the better half of the industry, outperforming 61.39% of the companies in the same industry.

Profitability Examination 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:

• Looking at the Return On Assets, with a value of 13.92%, JKHY belongs to the top of the industry, outperforming 96.04% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 20.51%, JKHY belongs to the top of the industry, outperforming 84.16% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 16.32%, JKHY belongs to the top 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 7.70%.
• JKHY's Profit Margin of 17.82% is fine compared to the rest of the industry. JKHY outperforms 67.33% of its industry peers.
• JKHY has a Operating Margin of 22.52%. This is in the better half of the industry: JKHY outperforms 66.34% of its industry peers.
• Looking at the Gross Margin, with a value of 41.42%, JKHY is in the better half of the industry, outperforming 64.36% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of JKHY for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.