JACK HENRY & ASSOCIATES INC (JKHY) Fundamental Analysis & Valuation

NASDAQ:JKHY • US4262811015

Current stock price

168.77 USD
+2.43 (+1.46%)
At close:
168.77 USD
0 (0%)
After Hours:

This JKHY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. JKHY Profitability Analysis

1.1 Basic Checks

  • In the past year JKHY was profitable.
  • JKHY had a positive operating cash flow in the past year.
  • JKHY had positive earnings in each of the past 5 years.
  • In the past 5 years JKHY always reported a positive cash flow from operatings.
JKHY Yearly Net Income VS EBIT VS OCF VS FCFJKHY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • With an excellent Return On Assets value of 16.58%, JKHY belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
  • JKHY has a better Return On Equity (23.03%) than 86.73% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 18.41%, JKHY belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for JKHY is significantly above the industry average of 8.33%.
  • The last Return On Invested Capital (18.41%) for JKHY is above the 3 year average (16.83%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 16.58%
ROE 23.03%
ROIC 18.41%
ROA(3y)13.75%
ROA(5y)13.87%
ROE(3y)21.63%
ROE(5y)22.96%
ROIC(3y)16.83%
ROIC(5y)17.31%
JKHY Yearly ROA, ROE, ROICJKHY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • JKHY has a Profit Margin of 20.59%. This is in the better half of the industry: JKHY outperforms 78.57% of its industry peers.
  • In the last couple of years the Profit Margin of JKHY has grown nicely.
  • JKHY's Operating Margin of 25.87% is fine compared to the rest of the industry. JKHY outperforms 72.45% of its industry peers.
  • JKHY's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of JKHY (43.84%) is better than 67.35% 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 RankSector Rank
OM 25.87%
PM (TTM) 20.59%
GM 43.84%
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%
JKHY Yearly Profit, Operating, Gross MarginsJKHY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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8

2. JKHY Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), JKHY is creating value.
  • JKHY has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for JKHY has been reduced compared to 5 years ago.
  • JKHY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
JKHY Yearly Shares OutstandingJKHY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
JKHY Yearly Total Debt VS Total AssetsJKHY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • JKHY has an Altman-Z score of 11.62. This indicates that JKHY is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 11.62, JKHY belongs to the best of the industry, outperforming 94.90% of the companies in the same industry.
  • JKHY has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
  • JKHY's Debt to FCF ratio of 0.04 is amongst the best of the industry. JKHY outperforms 89.80% of its industry peers.
  • JKHY has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.01, JKHY belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.04
Altman-Z 11.62
ROIC/WACC2.06
WACC8.93%
JKHY Yearly LT Debt VS Equity VS FCFJKHY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.3 Liquidity

  • JKHY has a Current Ratio of 1.60. 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 Current ratio value of 1.60, JKHY is doing good in the industry, outperforming 70.41% of the companies in the same industry.
  • A Quick Ratio of 1.60 indicates that JKHY should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.60, JKHY is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.6
Quick Ratio 1.6
JKHY Yearly Current Assets VS Current LiabilitesJKHY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. JKHY Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 25.63% over the past year.
  • The Earnings Per Share has been growing by 10.08% on average over the past years. This is quite good.
  • The Revenue has grown by 8.41% in the past year. This is quite good.
  • JKHY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
EPS 1Y (TTM)25.63%
EPS 3Y8.1%
EPS 5Y10.08%
EPS Q2Q%28.36%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y6.93%
Revenue growth 5Y6.96%
Sales Q2Q%7.93%

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 9.59% on average per year.
  • Based on estimates for the next years, JKHY will show a small growth in Revenue. The Revenue will grow by 6.79% on average per year.
EPS Next Y9.38%
EPS Next 2Y7.7%
EPS Next 3Y7.94%
EPS Next 5Y9.59%
Revenue Next Year6.99%
Revenue Next 2Y6.61%
Revenue Next 3Y6.62%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
JKHY Yearly Revenue VS EstimatesJKHY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
JKHY Yearly EPS VS EstimatesJKHY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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2

4. JKHY Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.25, the valuation of JKHY can be described as rather expensive.
  • Based on the Price/Earnings ratio, JKHY is valued a bit more expensive than the industry average as 63.27% 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 25.70, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 23.32 indicates a rather expensive valuation of JKHY.
  • Based on the Price/Forward Earnings ratio, JKHY is valued a bit more expensive than the industry average as 67.35% of the companies are valued more cheaply.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. JKHY is around the same levels.
Industry RankSector Rank
PE 24.25
Fwd PE 23.32
JKHY Price Earnings VS Forward Price EarningsJKHY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as JKHY.
  • JKHY's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 25.9
EV/EBITDA 14.19
JKHY Per share dataJKHY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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)2.58
PEG (5Y)2.4
EPS Next 2Y7.7%
EPS Next 3Y7.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. JKHY Dividend Analysis

5.1 Amount

  • JKHY has a Yearly Dividend Yield of 1.46%. 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 2.36.
  • JKHY's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.46%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.38%
Div Incr Years21
Div Non Decr Years34
JKHY Yearly Dividends per shareJKHY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 33.20% 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.
DP33.2%
EPS Next 2Y7.7%
EPS Next 3Y7.94%
JKHY Yearly Income VS Free CF VS DividendJKHY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
JKHY Dividend Payout.JKHY Dividend Payout, showing the Payout Ratio.JKHY Dividend Payout.PayoutRetained Earnings

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JKHY Fundamentals: All Metrics, Ratios and Statistics

JACK HENRY & ASSOCIATES INC

NASDAQ:JKHY (3/13/2026, 8:00:02 PM)

After market: 168.77 0 (0%)

168.77

+2.43 (+1.46%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-03
Earnings (Next)04-28
Inst Owners104.58%
Inst Owner Change6.47%
Ins Owners0.5%
Ins Owner Change-1.79%
Market Cap12.18B
Revenue(TTM)2.46B
Net Income(TTM)507.37M
Analysts82.61
Price Target207.65 (23.04%)
Short Float %4.66%
Short Ratio3.56
Dividend
Industry RankSector Rank
Dividend Yield 1.46%
Yearly Dividend2.26
Dividend Growth(5Y)6.38%
DP33.2%
Div Incr Years21
Div Non Decr Years34
Ex-Date03-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.32%
Min EPS beat(2)12.89%
Max EPS beat(2)17.75%
EPS beat(4)4
Avg EPS beat(4)12.26%
Min EPS beat(4)8.73%
Max EPS beat(4)17.75%
EPS beat(8)6
Avg EPS beat(8)6.36%
EPS beat(12)9
Avg EPS beat(12)6.16%
EPS beat(16)12
Avg EPS beat(16)5.47%
Revenue beat(2)0
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)-0.29%
Revenue beat(4)0
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)-0.21%
Revenue beat(8)0
Avg Revenue beat(8)-1.59%
Revenue beat(12)1
Avg Revenue beat(12)-1.07%
Revenue beat(16)1
Avg Revenue beat(16)-1.36%
PT rev (1m)1.89%
PT rev (3m)12.09%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)-2.6%
EPS NY rev (1m)3.29%
EPS NY rev (3m)3.6%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.71%
Valuation
Industry RankSector Rank
PE 24.25
Fwd PE 23.32
P/S 4.94
P/FCF 25.9
P/OCF 17.2
P/B 5.53
P/tB 18.37
EV/EBITDA 14.19
EPS(TTM)6.96
EY4.12%
EPS(NY)7.24
Fwd EY4.29%
FCF(TTM)6.52
FCFY3.86%
OCF(TTM)9.81
OCFY5.81%
SpS34.15
BVpS30.53
TBVpS9.19
PEG (NY)2.58
PEG (5Y)2.4
Graham Number69.14
Profitability
Industry RankSector Rank
ROA 16.58%
ROE 23.03%
ROCE 23.84%
ROIC 18.41%
ROICexc 18.6%
ROICexgc 44.49%
OM 25.87%
PM (TTM) 20.59%
GM 43.84%
FCFM 19.09%
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 Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.04
Debt/EBITDA 0.02
Cap/Depr 114.6%
Cap/Sales 9.65%
Interest Coverage 85.3
Cash Conversion 83.79%
Profit Quality 92.71%
Current Ratio 1.6
Quick Ratio 1.6
Altman-Z 11.62
F-Score9
WACC8.93%
ROIC/WACC2.06
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)25.63%
EPS 3Y8.1%
EPS 5Y10.08%
EPS Q2Q%28.36%
EPS Next Y9.38%
EPS Next 2Y7.7%
EPS Next 3Y7.94%
EPS Next 5Y9.59%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y6.93%
Revenue growth 5Y6.96%
Sales Q2Q%7.93%
Revenue Next Year6.99%
Revenue Next 2Y6.61%
Revenue Next 3Y6.62%
Revenue Next 5Y6.79%
EBIT growth 1Y24.54%
EBIT growth 3Y6.22%
EBIT growth 5Y8.12%
EBIT Next Year45.7%
EBIT Next 3Y18.89%
EBIT Next 5Y16.01%
FCF growth 1Y122.78%
FCF growth 3Y9.42%
FCF growth 5Y4.27%
OCF growth 1Y64.87%
OCF growth 3Y8.33%
OCF growth 5Y4.67%

JACK HENRY & ASSOCIATES INC / JKHY Fundamental Analysis 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 for 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.


What are the PE and PB ratios of JACK HENRY & ASSOCIATES INC (JKHY) stock?

The Price/Earnings (PE) ratio for JACK HENRY & ASSOCIATES INC (JKHY) is 24.25 and the Price/Book (PB) ratio is 5.53.


What is the expected EPS growth for JACK HENRY & ASSOCIATES INC (JKHY) stock?

The Earnings per Share (EPS) of JACK HENRY & ASSOCIATES INC (JKHY) is expected to grow by 9.38% in the next year.