JACK HENRY & ASSOCIATES INC (JKHY) Stock Fundamental Analysis
USA - NASDAQ:JKHY - US4262811015 - Common Stock
150.785 USD
-0.66 (-0.44%)
Overall JKHY gets a fundamental rating of 6 out of 10. We evaluated JKHY against 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. This makes JKHY very considerable 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.
JKHY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 14.64%, JKHY belongs to the best of the industry, outperforming 96.04% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.08%, JKHY belongs to the top of the industry, outperforming 85.15% of the companies in the same industry.
JKHY has a Return On Invested Capital of 16.66%. This is amongst the best in the industry. JKHY outperforms 93.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.64% | ||
| ROE | 21.08% | ||
| ROIC | 16.66% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 18.50%, JKHY is doing good in the industry, outperforming 72.28% of the companies in the same industry.
JKHY's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 23.22%, JKHY is doing good in the industry, outperforming 69.31% of the companies in the same industry.
JKHY's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 42.06%, JKHY is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
JKHY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.22% | ||
| PM (TTM) | 18.5% | ||
| GM | 42.06% |
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.
JKHY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
JKHY has an Altman-Z score of 10.43. This indicates that JKHY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.43, JKHY belongs to the best of the industry, outperforming 93.07% 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.
Looking at the Debt to FCF ratio, with a value of 0.56, JKHY belongs to the top of the industry, outperforming 89.11% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that JKHY is not too dependend on debt financing.
The Debt to Equity ratio of JKHY (0.04) is better than 86.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 10.43 |
ROIC/WACC1.91
WACC8.72%
2.3 Liquidity
JKHY has a Current Ratio of 1.36. This is a normal value and indicates that JKHY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.36, JKHY is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that JKHY should not have too much problems paying its short term obligations.
The Quick ratio of JKHY (1.36) is better than 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.54% 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 7.21%.
The Revenue has been growing slightly by 6.96% on average over the past years.
EPS 1Y (TTM)19.54%
EPS 3Y8.1%
EPS 5Y10.08%
EPS Q2Q%26.81%
Revenue 1Y (TTM)7.21%
Revenue growth 3Y6.93%
Revenue growth 5Y6.96%
Sales Q2Q%9.91%
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 8.70% on average per year.
Based on estimates for the next years, JKHY will show a small growth in Revenue. The Revenue will grow by 7.30% on average per year.
EPS Next Y4.91%
EPS Next 2Y6.49%
EPS Next 3Y7.41%
EPS Next 5Y8.7%
Revenue Next Year5.91%
Revenue Next 2Y6.16%
Revenue Next 3Y6.6%
Revenue Next 5Y7.3%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 24.16 indicates a rather expensive valuation of JKHY.
Compared to the rest of the industry, the Price/Earnings ratio of JKHY indicates a slightly more expensive valuation: JKHY is more expensive than 61.39% 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 27.41, which is the current average of the S&P500 Index.
JKHY is valuated rather expensively with a Price/Forward Earnings ratio of 23.03.
JKHY's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. JKHY is more expensive than 66.34% of the companies in the same industry.
JKHY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.16 | ||
| Fwd PE | 23.03 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.3 | ||
| EV/EBITDA | 15.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JKHY does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of JKHY may justify a higher PE ratio.
PEG (NY)4.93
PEG (5Y)2.4
EPS Next 2Y6.49%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
JKHY has a Yearly Dividend Yield of 1.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.03, JKHY pays a bit more dividend than its industry peers.
JKHY's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
On average, the dividend of JKHY grows each year by 6.79%, 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)6.79%
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 2Y6.49%
EPS Next 3Y7.41%
NASDAQ:JKHY (9/23/2025, 12:11:51 PM)
150.785
-0.66 (-0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners98.88%
Inst Owner Change-0.17%
Ins Owners0.47%
Ins Owner Change0.37%
Market Cap10.99B
Analysts71.82
Price Target189.27 (25.52%)
Short Float %3.36%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
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)-3.22%
PT rev (3m)-1.7%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)2.11%
EPS NY rev (1m)0%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.16 | ||
| Fwd PE | 23.03 | ||
| P/S | 4.74 | ||
| P/FCF | 36.3 | ||
| P/OCF | 20.12 | ||
| P/B | 5.4 | ||
| P/tB | 20.07 | ||
| EV/EBITDA | 15.04 |
EPS(TTM)6.24
EY4.14%
EPS(NY)6.55
Fwd EY4.34%
FCF(TTM)4.15
FCFY2.75%
OCF(TTM)7.5
OCFY4.97%
SpS31.84
BVpS27.95
TBVpS7.51
PEG (NY)4.93
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.64% | ||
| ROE | 21.08% | ||
| ROCE | 21.58% | ||
| ROIC | 16.66% | ||
| ROICexc | 16.93% | ||
| ROICexgc | 42.99% | ||
| OM | 23.22% | ||
| PM (TTM) | 18.5% | ||
| GM | 42.06% | ||
| FCFM | 13.05% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-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 | 10.43 |
F-Score8
WACC8.72%
ROIC/WACC1.91
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.54%
EPS 3Y8.1%
EPS 5Y10.08%
EPS Q2Q%26.81%
EPS Next Y4.91%
EPS Next 2Y6.49%
EPS Next 3Y7.41%
EPS Next 5Y8.7%
Revenue 1Y (TTM)7.21%
Revenue growth 3Y6.93%
Revenue growth 5Y6.96%
Sales Q2Q%9.91%
Revenue Next Year5.91%
Revenue Next 2Y6.16%
Revenue Next 3Y6.6%
Revenue Next 5Y7.3%
EBIT growth 1Y10.39%
EBIT growth 3Y6.22%
EBIT growth 5Y8.12%
EBIT Next Year44.61%
EBIT Next 3Y18.21%
EBIT Next 5Y18.37%
FCF growth 1Y3.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.92%
OCF growth 3YN/A
OCF growth 5YN/A