JACK HENRY & ASSOCIATES INC (JKHY)
US4262811015 - Common Stock
JKHY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. JKHY gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, JKHY is valued expensive at the moment. This makes JKHY very considerable for 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.
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
JKHY has a better Return On Assets (13.54%) than 96.08% of its industry peers.
JKHY has a better Return On Equity (21.63%) than 86.27% of its industry peers.
The Return On Invested Capital of JKHY (15.88%) is better than 93.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JKHY is significantly above the industry average of 7.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 21.63% | ||
| ROIC | 15.88% |
ROA(3y)13.78%
ROA(5y)13.2%
ROE(3y)24.22%
ROE(5y)22.17%
ROIC(3y)17.48%
ROIC(5y)16.67%
1.3 Margins
Looking at the Profit Margin, with a value of 17.26%, JKHY is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
In the last couple of years the Profit Margin of JKHY has declined.
With a decent Operating Margin value of 22.42%, JKHY is doing good in the industry, outperforming 68.63% of the companies in the same industry.
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 41.67%. This is in the better half of the industry: JKHY outperforms 62.75% 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 | 22.42% | ||
| PM (TTM) | 17.26% | ||
| GM | 41.67% |
OM growth 3Y0.66%
OM growth 5Y-0.89%
PM growth 3Y0.31%
PM growth 5Y-6.59%
GM growth 3Y0.61%
GM growth 5Y-0.32%
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.
JKHY has less shares outstanding than it did 5 years ago.
JKHY has a worse debt/assets ratio than last year.
2.2 Solvency
JKHY has an Altman-Z score of 9.84. This indicates that JKHY is financially healthy and has little risk of bankruptcy at the moment.
JKHY has a Altman-Z score of 9.84. This is amongst the best in the industry. JKHY outperforms 95.10% of its industry peers.
The Debt to FCF ratio of JKHY is 1.21, which is an excellent value as it means it would take JKHY, only 1.21 years of fcf income to pay off all of its debts.
JKHY has a Debt to FCF ratio of 1.21. This is amongst the best in the industry. JKHY outperforms 81.37% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that JKHY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.15, JKHY is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 9.84 |
ROIC/WACC1.72
WACC9.21%
2.3 Liquidity
A Current Ratio of 1.37 indicates that JKHY should not have too much problems paying its short term obligations.
JKHY's Current ratio of 1.37 is fine compared to the rest of the industry. JKHY outperforms 61.76% of its industry peers.
JKHY has a Quick Ratio of 1.37. This is a normal value and indicates that JKHY is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.37, JKHY is doing good in the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
JKHY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.02%.
Measured over the past 5 years, JKHY shows a small growth in Earnings Per Share. The EPS has been growing by 6.70% on average per year.
Looking at the last year, JKHY shows a quite strong growth in Revenue. The Revenue has grown by 8.26% in the last year.
The Revenue has been growing slightly by 7.15% on average over the past years.
EPS 1Y (TTM)6.02%
EPS 3Y9.15%
EPS 5Y6.7%
EPS growth Q2Q14.55%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y6.98%
Revenue growth 5Y7.15%
Revenue growth Q2Q8%
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 13.19% yearly.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y4.1%
EPS Next 2Y7.67%
EPS Next 3Y7.87%
EPS Next 5Y13.19%
Revenue Next Year8.15%
Revenue Next 2Y7.54%
Revenue Next 3Y7.28%
Revenue Next 5Y7.35%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
JKHY is valuated quite expensively with a Price/Earnings ratio of 31.99.
Based on the Price/Earnings ratio, JKHY is valued a bit more expensive than the industry average as 61.76% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of JKHY to the average of the S&P500 Index (28.06), we can say JKHY is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 28.09, the valuation of JKHY can be described as 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 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. JKHY is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.99 | ||
| Fwd PE | 28.09 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as JKHY.
The rest of the industry has a similar Price/Free Cash Flow ratio as JKHY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.42 | ||
| EV/EBITDA | 17.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JKHY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.81
PEG (5Y)4.78
EPS Next 2Y7.67%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
JKHY has a Yearly Dividend Yield of 1.33%.
JKHY's Dividend Yield is a higher than the industry average which is at 3.61.
With a Dividend Yield of 1.33, JKHY pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of JKHY is nicely growing with an annual growth rate of 8.25%!
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)8.25%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
40.60% of the earnings are spent on dividend by JKHY. This is a bit on the high side, but may be sustainable.
JKHY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.6%
EPS Next 2Y7.67%
EPS Next 3Y7.87%
JACK HENRY & ASSOCIATES INC
NASDAQ:JKHY (5/3/2024, 11:51:02 AM)
163.46
+0.95 (+0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.99 | ||
| Fwd PE | 28.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)7.81
PEG (5Y)4.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 21.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.42% | ||
| PM (TTM) | 17.26% | ||
| GM | 41.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.02%
EPS 3Y9.15%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.26%
Revenue growth 3Y6.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y