JACK HENRY & ASSOCIATES INC (JKHY) Stock Fundamental Analysis
NASDAQ:JKHY - Nasdaq - US4262811015 - Common Stock - Currency: USD
Overall JKHY gets a fundamental rating of 7 out of 10. We evaluated JKHY against 101 industry peers in the Financial Services industry. JKHY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, JKHY is valued expensive at the moment. These ratings could make JKHY a good candidate for 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.
Each year in the past 5 years JKHY has been profitable.
In the past 5 years JKHY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.64%, JKHY belongs to the top of the industry, outperforming 96.04% of the companies in the same industry.
JKHY has a better Return On Equity (21.08%) than 84.16% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.61%, JKHY belongs to the top of the industry, outperforming 93.07% of the companies in the same industry.
JKHY had an Average Return On Invested Capital over the past 3 years of 17.33%. This is significantly above the industry average of 7.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.64% | ||
| ROE | 21.08% | ||
| ROIC | 16.61% |
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
The Profit Margin of JKHY (18.50%) is better than 76.24% of its industry peers.
JKHY's Profit Margin has been stable in the last couple of years.
The Operating Margin of JKHY (23.22%) is better than 69.31% of its industry peers.
JKHY's Operating Margin has been stable in the last couple of years.
JKHY has a Gross Margin of 42.06%. This is in the better half of the industry: JKHY outperforms 61.39% of its industry peers.
JKHY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.22% | ||
| PM (TTM) | 18.5% | ||
| GM | 42.06% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so JKHY is creating value.
The number of shares outstanding for JKHY remains at a similar level compared to 1 year ago.
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
JKHY has an Altman-Z score of 11.04. This indicates that JKHY is financially healthy and has little risk of bankruptcy at the moment.
JKHY's Altman-Z score of 11.04 is amongst the best of the industry. JKHY outperforms 93.07% of its industry peers.
The Debt to FCF ratio of JKHY is 0.56, which is an excellent value as it means it would take JKHY, only 0.56 years of fcf income to pay off all of its debts.
JKHY has a Debt to FCF ratio of 0.56. This is amongst the best in the industry. JKHY outperforms 89.11% of its industry peers.
JKHY has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
JKHY has a better Debt to Equity ratio (0.04) than 85.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 11.04 |
ROIC/WACC1.88
WACC8.85%
2.3 Liquidity
JKHY has a Current Ratio of 1.36. 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 1.36. This is in the better half of the industry: JKHY outperforms 61.39% of its industry peers.
A Quick Ratio of 1.36 indicates that JKHY should not have too much problems paying its short term obligations.
JKHY has a Quick ratio of 1.36. This is in the better half of the industry: JKHY outperforms 63.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
JKHY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.32%, 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.
The Revenue has been growing slightly by 5.92% in the past 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)13.32%
EPS 3Y8.21%
EPS 5Y8.2%
EPS Q2Q%27.73%
Revenue 1Y (TTM)5.92%
Revenue growth 3Y8.01%
Revenue growth 5Y7.37%
Sales Q2Q%8.64%
3.2 Future
JKHY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.69% yearly.
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 Y16.79%
EPS Next 2Y11.6%
EPS Next 3Y10.47%
EPS Next 5Y12.69%
Revenue Next Year6.1%
Revenue Next 2Y6.39%
Revenue Next 3Y6.41%
Revenue Next 5Y7.17%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
JKHY is valuated quite expensively with a Price/Earnings ratio of 27.52.
66.34% of the companies in the same industry are cheaper than JKHY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.48. JKHY is around the same levels.
The Price/Forward Earnings ratio is 24.85, which indicates a rather expensive current valuation of JKHY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JKHY indicates a slightly more expensive valuation: JKHY is more expensive than 68.32% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.04. JKHY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 24.85 |
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 | 38.86 | ||
| EV/EBITDA | 16.27 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
JKHY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.64
PEG (5Y)3.36
EPS Next 2Y11.6%
EPS Next 3Y10.47%
5. Dividend
5.1 Amount
JKHY has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
JKHY's Dividend Yield is comparable with the industry average which is at 5.33.
Compared to an average S&P500 Dividend Yield of 2.40, JKHY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.79%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
JKHY pays out 37.87% 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.
DP37.87%
EPS Next 2Y11.6%
EPS Next 3Y10.47%
161.56
-2.53 (-1.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.8%
Inst Owner Change-1.1%
Ins Owners0.47%
Ins Owner Change-3.34%
Market Cap11.76B
Analysts71.2
Price Target192.55 (19.18%)
Short Float %3.3%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.14
Dividend Growth(5Y)6.79%
DP37.87%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.62%
Min EPS beat(2)-0.45%
Max EPS beat(2)9.69%
EPS beat(4)2
Avg EPS beat(4)2.86%
Min EPS beat(4)-0.54%
Max EPS beat(4)9.69%
EPS beat(8)6
Avg EPS beat(8)4.33%
EPS beat(12)8
Avg EPS beat(12)3.42%
EPS beat(16)12
Avg EPS beat(16)4.59%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-1.82%
Revenue beat(8)1
Avg Revenue beat(8)-1.43%
Revenue beat(12)1
Avg Revenue beat(12)-1.62%
Revenue beat(16)2
Avg Revenue beat(16)-1.27%
PT rev (1m)0.01%
PT rev (3m)-1.51%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)2.52%
EPS NY rev (1m)0%
EPS NY rev (3m)2.46%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 24.85 | ||
| P/S | 5.07 | ||
| P/FCF | 38.86 | ||
| P/OCF | 21.54 | ||
| P/B | 5.78 | ||
| P/tB | 21.49 | ||
| EV/EBITDA | 16.27 |
EPS(TTM)5.87
EY3.63%
EPS(NY)6.5
Fwd EY4.02%
FCF(TTM)4.16
FCFY2.57%
OCF(TTM)7.5
OCFY4.64%
SpS31.86
BVpS27.97
TBVpS7.52
PEG (NY)1.64
PEG (5Y)3.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.64% | ||
| ROE | 21.08% | ||
| ROCE | 21.58% | ||
| ROIC | 16.61% | ||
| ROICexc | 16.88% | ||
| ROICexgc | 42.85% | ||
| OM | 23.22% | ||
| PM (TTM) | 18.5% | ||
| GM | 42.06% | ||
| FCFM | 13.05% |
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-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.56 | ||
| Debt/EBITDA | 0.11 | ||
| Cap/Depr | 119.38% | ||
| Cap/Sales | 10.5% | ||
| Interest Coverage | 44.49 | ||
| Cash Conversion | 73.55% | ||
| Profit Quality | 70.53% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 11.04 |
F-Score8
WACC8.85%
ROIC/WACC1.88
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)13.32%
EPS 3Y8.21%
EPS 5Y8.2%
EPS Q2Q%27.73%
EPS Next Y16.79%
EPS Next 2Y11.6%
EPS Next 3Y10.47%
EPS Next 5Y12.69%
Revenue 1Y (TTM)5.92%
Revenue growth 3Y8.01%
Revenue growth 5Y7.37%
Sales Q2Q%8.64%
Revenue Next Year6.1%
Revenue Next 2Y6.39%
Revenue Next 3Y6.41%
Revenue Next 5Y7.17%
EBIT growth 1Y10.39%
EBIT growth 3Y7.25%
EBIT growth 5Y7.1%
EBIT Next Year52.67%
EBIT Next 3Y20.52%
EBIT Next 5Y17.93%
FCF growth 1Y43.4%
FCF growth 3Y3.32%
FCF growth 5Y5.21%
OCF growth 1Y33.15%
OCF growth 3Y7.12%
OCF growth 5Y5.67%