JACK HENRY & ASSOCIATES INC (JKHY) Stock Fundamental Analysis
NASDAQ:JKHY - Nasdaq - US4262811015 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to JKHY. JKHY was compared to 101 industry peers in the Financial Services industry. JKHY gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past 5 years JKHY has always been profitable.
Each year in the past 5 years JKHY had a positive operating cash flow.
1.2 Ratios
JKHY's Return On Assets of 14.64% is amongst the best of the industry. JKHY outperforms 95.05% of its industry peers.
JKHY's Return On Equity of 21.08% is amongst the best of the industry. JKHY outperforms 84.16% of its industry peers.
JKHY has a Return On Invested Capital of 16.61%. This is amongst the best in the industry. JKHY outperforms 92.08% of its industry peers.
JKHY had an Average Return On Invested Capital over the past 3 years of 17.33%. This is significantly above the industry average of 11.69%.
| 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
With a decent Profit Margin value of 18.50%, JKHY is doing good in the industry, outperforming 74.26% 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.
JKHY has a Operating Margin of 23.22%. This is in the better half of the industry: JKHY outperforms 69.31% of its industry peers.
In the last couple of years the Operating Margin of JKHY has remained more or less at the same level.
Looking at the Gross Margin, with a value of 42.06%, JKHY is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
JKHY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.91 indicates that JKHY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.91, 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 0.56, 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.
With an excellent Debt to FCF ratio value of 0.56, JKHY belongs to the best of the industry, outperforming 88.12% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that JKHY is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.04, JKHY belongs to the best of the industry, outperforming 84.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 11.91 |
ROIC/WACC1.81
WACC9.16%
2.3 Liquidity
A Current Ratio of 1.36 indicates that JKHY should not have too much problems paying its short term obligations.
JKHY has a better Current ratio (1.36) than 65.35% 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's Quick ratio of 1.36 is fine compared to the rest of the industry. JKHY outperforms 67.33% 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.
JKHY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.20% yearly.
Looking at the last year, JKHY shows a small growth in Revenue. The Revenue has grown by 5.92% in the last year.
JKHY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.37% yearly.
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.
JKHY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.17% yearly.
EPS Next Y15.61%
EPS Next 2Y11.14%
EPS Next 3Y10.03%
EPS Next 5Y12.69%
Revenue Next Year6.19%
Revenue Next 2Y6.47%
Revenue Next 3Y6.48%
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
A Price/Earnings ratio of 30.98 indicates a quite expensive valuation of JKHY.
Based on the Price/Earnings ratio, JKHY is valued a bit more expensive than the industry average as 68.32% of the companies are valued more cheaply.
JKHY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
JKHY is valuated quite expensively with a Price/Forward Earnings ratio of 28.20.
JKHY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. JKHY is more expensive than 70.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, JKHY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 28.2 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as JKHY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.79 | ||
| EV/EBITDA | 18.03 |
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)1.98
PEG (5Y)3.78
EPS Next 2Y11.14%
EPS Next 3Y10.03%
5. Dividend
5.1 Amount
JKHY has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.88, JKHY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, JKHY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of JKHY is nicely growing with an annual growth rate of 6.79%!
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
37.87% of the earnings are spent on dividend by JKHY. This is a low number and sustainable payout ratio.
The dividend of JKHY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.87%
EPS Next 2Y11.14%
EPS Next 3Y10.03%
181.84
-1.14 (-0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners99.84%
Inst Owner Change-0.04%
Ins Owners0.5%
Ins Owner Change-3.15%
Market Cap13.26B
Analysts70.4
Price Target195.5 (7.51%)
Short Float %2.9%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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)0.2%
PT rev (3m)1%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)1.24%
EPS NY rev (1m)1.43%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 28.2 | ||
| P/S | 5.71 | ||
| P/FCF | 43.79 | ||
| P/OCF | 24.27 | ||
| P/B | 6.51 | ||
| P/tB | 24.21 | ||
| EV/EBITDA | 18.03 |
EPS(TTM)5.87
EY3.23%
EPS(NY)6.45
Fwd EY3.55%
FCF(TTM)4.15
FCFY2.28%
OCF(TTM)7.49
OCFY4.12%
SpS31.82
BVpS27.93
TBVpS7.51
PEG (NY)1.98
PEG (5Y)3.78
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 | 11.91 |
F-Score8
WACC9.16%
ROIC/WACC1.81
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 Y15.61%
EPS Next 2Y11.14%
EPS Next 3Y10.03%
EPS Next 5Y12.69%
Revenue 1Y (TTM)5.92%
Revenue growth 3Y8.01%
Revenue growth 5Y7.37%
Sales Q2Q%8.64%
Revenue Next Year6.19%
Revenue Next 2Y6.47%
Revenue Next 3Y6.48%
Revenue Next 5Y7.17%
EBIT growth 1Y10.39%
EBIT growth 3Y7.25%
EBIT growth 5Y7.1%
EBIT Next Year53.05%
EBIT Next 3Y20.6%
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%