179.455 USD
-3.48 (-1.9%)
We assign a fundamental rating of 7 out of 10 to JKHY. JKHY was compared to 97 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. JKHY is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, JKHY could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year JKHY was profitable.
- JKHY had a positive operating cash flow in the past year.
- 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
- The Return On Assets of JKHY (15.77%) is better than 95.88% of its industry peers.
- Looking at the Return On Equity, with a value of 22.11%, JKHY belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 17.79%, JKHY belongs to the best of the industry, outperforming 93.81% 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 8.46%.
- The last Return On Invested Capital (17.79%) for JKHY is above the 3 year average (16.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.77% | ||
| ROE | 22.11% | ||
| ROIC | 17.79% |
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
- JKHY's Profit Margin of 19.86% is amongst the best of the industry. JKHY outperforms 80.41% of its industry peers.
- In the last couple of years the Profit Margin of JKHY has grown nicely.
- JKHY has a better Operating Margin (24.87%) than 72.16% of its industry peers.
- JKHY's Operating Margin has been stable in the last couple of years.
- JKHY has a Gross Margin of 43.54%. This is in the better half of the industry: JKHY outperforms 64.95% of its industry peers.
- JKHY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.87% | ||
| PM (TTM) | 19.86% | ||
| GM | 43.54% |
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
- JKHY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, JKHY has about the same amount of shares outstanding.
- Compared to 5 years ago, JKHY has less shares outstanding
- 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 12.21 indicates that JKHY is not in any danger for bankruptcy at the moment.
- JKHY has a better Altman-Z score (12.21) than 94.85% of its industry peers.
- JKHY has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
- The Debt to FCF ratio of JKHY (0.05) is better than 90.72% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that JKHY is not too dependend on debt financing.
- The Debt to Equity ratio of JKHY (0.01) is better than 85.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 12.21 |
ROIC/WACC2
WACC8.89%
2.3 Liquidity
- JKHY has a Current Ratio of 1.49. 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 1.49, JKHY is doing good in the industry, outperforming 70.10% of the companies in the same industry.
- JKHY has a Quick Ratio of 1.49. 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 Quick ratio of 1.49. This is in the better half of the industry: JKHY outperforms 72.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.51% over the past year.
- Measured over the past years, JKHY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.08% on average per year.
- JKHY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
- The Revenue has been growing slightly by 6.96% on average over the past years.
EPS 1Y (TTM)20.51%
EPS 3Y8.1%
EPS 5Y10.08%
EPS Q2Q%20.86%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y6.93%
Revenue growth 5Y6.96%
Sales Q2Q%7.28%
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.
- The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y5.77%
EPS Next 2Y6.51%
EPS Next 3Y6.94%
EPS Next 5Y9.59%
Revenue Next Year6.33%
Revenue Next 2Y6.3%
Revenue Next 3Y6.43%
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 27.27, JKHY can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, JKHY is valued a bit more expensive than the industry average as 64.95% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of JKHY to the average of the S&P500 Index (27.25), we can say JKHY is valued inline with the index average.
- A Price/Forward Earnings ratio of 25.34 indicates a quite expensive 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 65.98% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. JKHY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 25.35 |
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.
- JKHY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.44 | ||
| EV/EBITDA | 16.37 |
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)4.73
PEG (5Y)2.7
EPS Next 2Y6.51%
EPS Next 3Y6.94%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.23%, JKHY has a reasonable but not impressive dividend return.
- JKHY's Dividend Yield is comparable with the industry average which is at 2.09.
- Compared to the average S&P500 Dividend Yield of 1.82, JKHY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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
5.3 Sustainability
- 34.69% 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.
DP34.69%
EPS Next 2Y6.51%
EPS Next 3Y6.94%
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 7 / 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 9 / 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 27.27 and the Price/Book (PB) ratio is 5.98.
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 5.77% in the next year.