JACK HENRY & ASSOCIATES INC (JKHY) Stock Fundamental Analysis
NASDAQ:JKHY - Nasdaq - US4262811015 - Common Stock - Currency: USD
Taking everything into account, JKHY scores 6 out of 10 in our fundamental rating. 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. 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.
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
JKHY has a Return On Assets of 13.92%. This is amongst the best in the industry. JKHY outperforms 96.04% of its industry peers.
The Return On Equity of JKHY (20.51%) is better than 83.17% of its industry peers.
The Return On Invested Capital of JKHY (16.32%) is better than 92.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JKHY is significantly above the industry average of 11.85%.
| 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
With a decent Profit Margin value of 17.82%, JKHY is doing good in the industry, outperforming 68.32% 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.
With a decent Operating Margin value of 22.52%, JKHY is doing good in the industry, outperforming 66.34% of the companies in the same industry.
JKHY's Operating Margin has been stable in the last couple of years.
The Gross Margin of JKHY (41.42%) is better 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 | 22.52% | ||
| 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
JKHY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.07 indicates that JKHY is not in any danger for bankruptcy at the moment.
JKHY's Altman-Z score of 11.07 is amongst the best of the industry. JKHY outperforms 97.03% of its industry peers.
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.
JKHY's Debt to FCF ratio of 0.51 is amongst the best of the industry. JKHY outperforms 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.
The Debt to Equity ratio of JKHY (0.03) is better than 84.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 11.07 |
ROIC/WACC1.04
WACC15.62%
2.3 Liquidity
A Current Ratio of 1.17 indicates that JKHY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, JKHY is in line with its industry, outperforming 58.42% of the companies in the same industry.
JKHY has a Quick 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's Quick ratio of 1.17 is fine compared to the rest of the industry. JKHY outperforms 61.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
JKHY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.41%, which is quite good.
The Earnings Per Share has been growing by 8.20% on average over the past years. This is quite good.
Looking at the last year, JKHY shows a small growth in Revenue. The Revenue has grown by 5.23% in the last year.
The Revenue has been growing slightly by 7.37% on average over the past years.
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
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 Y13.99%
EPS Next 2Y11.15%
EPS Next 3Y10.06%
EPS Next 5Y12.69%
Revenue Next Year6.99%
Revenue Next 2Y7.13%
Revenue Next 3Y7.02%
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 31.53 indicates a quite expensive valuation of JKHY.
66.34% of the companies in the same industry are cheaper than JKHY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.75, JKHY is valued at the same level.
Based on the Price/Forward Earnings ratio of 27.09, the valuation of JKHY can be described as expensive.
Based on the Price/Forward Earnings ratio, JKHY is valued a bit more expensive than 67.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.49. JKHY is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.53 | ||
| Fwd PE | 27.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JKHY is on the same level as its industry peers.
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 | 43.09 | ||
| EV/EBITDA | 17.9 |
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)2.25
PEG (5Y)3.85
EPS Next 2Y11.15%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
JKHY has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.93, JKHY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, JKHY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 39.57% 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.
DP39.57%
EPS Next 2Y11.15%
EPS Next 3Y10.06%
NASDAQ:JKHY (5/2/2025, 1:21:38 PM)
174.7
+0.81 (+0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners99.84%
Inst Owner Change0.29%
Ins Owners0.5%
Ins Owner Change-0.84%
Market Cap12.74B
Analysts69.6
Price Target195.5 (11.91%)
Short Float %2.89%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)0.44%
PT rev (3m)-0.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.05%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.53 | ||
| Fwd PE | 27.09 | ||
| P/S | 5.6 | ||
| P/FCF | 43.09 | ||
| P/OCF | 23.76 | ||
| P/B | 6.45 | ||
| P/tB | 25.96 | ||
| EV/EBITDA | 17.9 |
EPS(TTM)5.54
EY3.17%
EPS(NY)6.45
Fwd EY3.69%
FCF(TTM)4.05
FCFY2.32%
OCF(TTM)7.35
OCFY4.21%
SpS31.18
BVpS27.1
TBVpS6.73
PEG (NY)2.25
PEG (5Y)3.85
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 | 11.07 |
F-Score6
WACC15.62%
ROIC/WACC1.04
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 Y13.99%
EPS Next 2Y11.15%
EPS Next 3Y10.06%
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 3Y7.02%
Revenue Next 5Y7.17%
EBIT growth 1Y5.73%
EBIT growth 3Y7.25%
EBIT growth 5Y7.1%
EBIT Next Year53.05%
EBIT Next 3Y20.6%
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%