JACK HENRY & ASSOCIATES INC (JKHY) Stock Fundamental Analysis
USA - NASDAQ:JKHY - US4262811015 - Common Stock
160.8 USD
-2.28 (-1.4%)
160.8 USD
0 (0%)
JKHY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making JKHY a very profitable company, without any liquidiy or solvency issues. JKHY is quite expensive at the moment. It does show a decent growth rate. Finally JKHY also has an excellent dividend rating. These ratings could make JKHY a good candidate 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.
Each year in the past 5 years JKHY had a positive operating cash flow.
1.2 Ratios
JKHY has a Return On Assets of 14.97%. This is amongst the best in the industry. JKHY outperforms 95.88% of its industry peers.
Looking at the Return On Equity, with a value of 21.39%, JKHY belongs to the top of the industry, outperforming 84.54% of the companies in the same industry.
JKHY has a Return On Invested Capital of 17.51%. This is amongst the best in the industry. JKHY outperforms 92.78% of its industry peers.
JKHY had an Average Return On Invested Capital over the past 3 years of 16.83%. This is significantly above the industry average of 8.17%.
The 3 year average ROIC (16.83%) for JKHY is below the current ROIC(17.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.97% | ||
| ROE | 21.39% | ||
| ROIC | 17.51% |
ROA(3y)13.75%
ROA(5y)13.87%
ROE(3y)21.63%
ROE(5y)22.96%
ROIC(3y)16.83%
ROIC(5y)17.31%
1.3 Margins
With a decent Profit Margin value of 19.19%, JKHY is doing good in the industry, outperforming 78.35% of the companies in the same industry.
JKHY's Profit Margin has improved in the last couple of years.
The Operating Margin of JKHY (23.94%) is better than 70.10% of its industry peers.
In the last couple of years the Operating Margin of JKHY has remained more or less at the same level.
JKHY has a Gross Margin of 42.71%. This is in the better half of the industry: JKHY outperforms 63.92% of its industry peers.
JKHY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.94% | ||
| PM (TTM) | 19.19% | ||
| GM | 42.71% |
OM growth 3Y-0.67%
OM growth 5Y1.08%
PM growth 3Y0.9%
PM growth 5Y1.88%
GM growth 3Y0.63%
GM growth 5Y1.03%
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.
Compared to 1 year ago, JKHY has about the same amount of shares outstanding.
JKHY has less shares outstanding than it did 5 years ago.
There is no outstanding debt for JKHY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 10.68 indicates that JKHY is not in any danger for bankruptcy at the moment.
JKHY's Altman-Z score of 10.68 is amongst the best of the industry. JKHY outperforms 94.85% of its industry peers.
JKHY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.68 |
ROIC/WACC2
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.27 indicates that JKHY should not have too much problems paying its short term obligations.
JKHY's Current ratio of 1.27 is fine compared to the rest of the industry. JKHY outperforms 61.86% of its industry peers.
JKHY has a Quick Ratio of 1.27. 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 1.27 is fine compared to the rest of the industry. JKHY outperforms 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
JKHY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.51%, which is quite impressive.
JKHY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.08% yearly.
The Revenue has been growing slightly by 7.21% in the past year.
Measured over the past years, JKHY shows a small growth in Revenue. The Revenue has been growing by 6.96% on average per year.
EPS 1Y (TTM)20.51%
EPS 3Y8.1%
EPS 5Y10.08%
EPS Q2Q%20.86%
Revenue 1Y (TTM)7.21%
Revenue growth 3Y6.93%
Revenue growth 5Y6.96%
Sales Q2Q%7.28%
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 9.59% yearly.
JKHY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.79% yearly.
EPS Next Y4.76%
EPS Next 2Y6.31%
EPS Next 3Y6.15%
EPS Next 5Y9.59%
Revenue Next Year5.79%
Revenue Next 2Y6.12%
Revenue Next 3Y6.46%
Revenue Next 5Y6.79%
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 stable.
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
With a Price/Earnings ratio of 24.44, JKHY is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of JKHY indicates a slightly more expensive valuation: JKHY is more expensive than 61.86% of the companies listed in the same industry.
JKHY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.80, the valuation of JKHY can be described as rather expensive.
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 67.01% of the companies listed in the same industry.
JKHY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 22.8 |
4.2 Price Multiples
JKHY's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as JKHY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.48 | ||
| EV/EBITDA | 14.98 |
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)5.14
PEG (5Y)2.42
EPS Next 2Y6.31%
EPS Next 3Y6.15%
5. Dividend
5.1 Amount
JKHY has a Yearly Dividend Yield of 1.44%. 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 4.50.
Compared to the average S&P500 Dividend Yield of 2.36, JKHY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
On average, the dividend of JKHY grows each year by 6.38%, 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)6.38%
Div Incr Years21
Div Non Decr Years34
5.3 Sustainability
36.13% 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.
DP36.13%
EPS Next 2Y6.31%
EPS Next 3Y6.15%
160.8
-2.28 (-1.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners100.08%
Inst Owner Change-0.76%
Ins Owners0.51%
Ins Owner Change0.37%
Market Cap11.69B
Revenue(TTM)2.38B
Net Income(TTM)455.75M
Analysts71.3
Price Target183.86 (14.34%)
Short Float %4.82%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend2.26
Dividend Growth(5Y)6.38%
DP36.13%
Div Incr Years21
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.21%
Min EPS beat(2)8.73%
Max EPS beat(2)9.69%
EPS beat(4)2
Avg EPS beat(4)4.36%
Min EPS beat(4)-0.54%
Max EPS beat(4)9.69%
EPS beat(8)6
Avg EPS beat(8)4.05%
EPS beat(12)8
Avg EPS beat(12)3.52%
EPS beat(16)12
Avg EPS beat(16)4.5%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-0.21%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)-0.21%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)1
Avg Revenue beat(12)-1.52%
Revenue beat(16)2
Avg Revenue beat(16)-1.23%
PT rev (1m)-2.85%
PT rev (3m)-4.51%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 22.8 | ||
| P/S | 4.92 | ||
| P/FCF | 28.48 | ||
| P/OCF | 18.22 | ||
| P/B | 5.48 | ||
| P/tB | 18.24 | ||
| EV/EBITDA | 14.98 |
EPS(TTM)6.58
EY4.09%
EPS(NY)7.05
Fwd EY4.39%
FCF(TTM)5.65
FCFY3.51%
OCF(TTM)8.83
OCFY5.49%
SpS32.69
BVpS29.32
TBVpS8.82
PEG (NY)5.14
PEG (5Y)2.42
Graham Number65.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.97% | ||
| ROE | 21.39% | ||
| ROCE | 22.67% | ||
| ROIC | 17.51% | ||
| ROICexc | 18.25% | ||
| ROICexgc | 47.93% | ||
| OM | 23.94% | ||
| PM (TTM) | 19.19% | ||
| GM | 42.71% | ||
| FCFM | 17.28% |
ROA(3y)13.75%
ROA(5y)13.87%
ROE(3y)21.63%
ROE(5y)22.96%
ROIC(3y)16.83%
ROIC(5y)17.31%
ROICexc(3y)17.2%
ROICexc(5y)17.73%
ROICexgc(3y)48.04%
ROICexgc(5y)49.96%
ROCE(3y)21.8%
ROCE(5y)22.42%
ROICexgc growth 3Y-4.31%
ROICexgc growth 5Y-1.72%
ROICexc growth 3Y-2.47%
ROICexc growth 5Y1.1%
OM growth 3Y-0.67%
OM growth 5Y1.08%
PM growth 3Y0.9%
PM growth 5Y1.88%
GM growth 3Y0.63%
GM growth 5Y1.03%
F-Score9
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 112.9% | ||
| Cap/Sales | 9.73% | ||
| Interest Coverage | 56.62 | ||
| Cash Conversion | 82.94% | ||
| Profit Quality | 90.04% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 10.68 |
F-Score9
WACC8.76%
ROIC/WACC2
Cap/Depr(3y)112.57%
Cap/Depr(5y)107.06%
Cap/Sales(3y)10.06%
Cap/Sales(5y)9.8%
Profit Quality(3y)75.19%
Profit Quality(5y)81.91%
High Growth Momentum
Growth
EPS 1Y (TTM)20.51%
EPS 3Y8.1%
EPS 5Y10.08%
EPS Q2Q%20.86%
EPS Next Y4.76%
EPS Next 2Y6.31%
EPS Next 3Y6.15%
EPS Next 5Y9.59%
Revenue 1Y (TTM)7.21%
Revenue growth 3Y6.93%
Revenue growth 5Y6.96%
Sales Q2Q%7.28%
Revenue Next Year5.79%
Revenue Next 2Y6.12%
Revenue Next 3Y6.46%
Revenue Next 5Y6.79%
EBIT growth 1Y16.21%
EBIT growth 3Y6.22%
EBIT growth 5Y8.12%
EBIT Next Year44.36%
EBIT Next 3Y18.02%
EBIT Next 5Y16.01%
FCF growth 1Y22.26%
FCF growth 3Y9.42%
FCF growth 5Y4.27%
OCF growth 1Y12.93%
OCF growth 3Y8.33%
OCF growth 5Y4.67%
JACK HENRY & ASSOCIATES INC / JKHY FAQ
What is the ChartMill fundamental rating of JACK HENRY & ASSOCIATES INC (JKHY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to JKHY.
What is the valuation status of JACK HENRY & ASSOCIATES INC (JKHY) stock?
ChartMill assigns a valuation rating of 2 / 10 to JACK HENRY & ASSOCIATES INC (JKHY). This can be considered as Overvalued.
What is the profitability of JKHY stock?
JACK HENRY & ASSOCIATES INC (JKHY) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for JKHY stock?
The Price/Earnings (PE) ratio for JACK HENRY & ASSOCIATES INC (JKHY) is 24.44 and the Price/Book (PB) ratio is 5.48.
How sustainable is the dividend of JACK HENRY & ASSOCIATES INC (JKHY) stock?
The dividend rating of JACK HENRY & ASSOCIATES INC (JKHY) is 7 / 10 and the dividend payout ratio is 36.13%.