DB:JHY

Stock Analysis Report

Jack Henry & Associates

Executive Summary

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States.

Rewards

Trading at 0.01% below its fair value

Earnings are forecast to grow 9.53% per year

Pays a reliable dividend of 1.02%

Risk Analysis

No risks detected for JHY from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Jack Henry & Associates's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JHY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

JHY

-7.3%

DE IT

-5.7%

DE Market


1 Year Return

35.3%

JHY

21.1%

DE IT

6.1%

DE Market

Return vs Industry: JHY exceeded the German IT industry which returned 21.1% over the past year.

Return vs Market: JHY exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

JHYIndustryMarket
7 Day-1.9%-7.3%-5.7%
30 Day13.0%-8.8%-5.7%
90 Day13.0%5.2%-3.6%
1 Year36.9%35.3%21.9%21.1%9.3%6.1%
3 Year83.8%78.1%139.0%132.4%8.9%-0.7%
5 Year177.0%161.2%217.0%203.8%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Jack Henry & Associates's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Jack Henry & Associates undervalued compared to its fair value and its price relative to the market?

0.009%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JHY (€156) is trading below our estimate of fair value (€156.01)

Significantly Below Fair Value: JHY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JHY is poor value based on its PE Ratio (45.9x) compared to the IT industry average (31.9x).

PE vs Market: JHY is poor value based on its PE Ratio (45.9x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: JHY is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: JHY is overvalued based on its PB Ratio (8.7x) compared to the DE IT industry average (4.4x).


Next Steps

Future Growth

How is Jack Henry & Associates forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JHY's forecast earnings growth (9.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: JHY's earnings (9.5% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: JHY's earnings are forecast to grow, but not significantly.

Revenue vs Market: JHY's revenue (6.7% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: JHY's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JHY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Jack Henry & Associates performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JHY has high quality earnings.

Growing Profit Margin: JHY's current net profit margins (17.3%) are lower than last year (18.8%).


Past Earnings Growth Analysis

Earnings Trend: JHY's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: JHY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JHY had negative earnings growth (-2.4%) over the past year, making it difficult to compare to the IT industry average (13.9%).


Return on Equity

High ROE: JHY's Return on Equity (18.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jack Henry & Associates's financial position?


Financial Position Analysis

Short Term Liabilities: JHY's short term assets ($427.7M) exceed its short term liabilities ($343.2M).

Long Term Liabilities: JHY's short term assets ($427.7M) exceed its long term liabilities ($357.5M).


Debt to Equity History and Analysis

Debt Level: JHY is debt free.

Reducing Debt: JHY has no debt compared to 5 years ago when its debt to equity ratio was 7.6%.

Debt Coverage: JHY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: JHY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: JHY has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if JHY's debt is covered by short term assets.


Next Steps

Dividend

What is Jack Henry & Associates's current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Jack Henry & Associates before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.8%industryaverage0.6%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: JHY's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: JHY's dividend (1.02%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: JHY's dividends per share have been stable in the past 10 years.

Growing Dividend: JHY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), JHY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JHY's dividends in 3 years are forecast to be well covered by earnings (36.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Dave Foss (57yo)

3.6yrs

Tenure

US$4,851,479

Compensation

Mr. David B. Foss, also known as Dave, has been the President of Jack Henry & Associates Inc. since July 1, 2014 and has been its Chief Executive Officer since July 1, 2016. Mr. Foss is a Director of CNO F ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD4.85M) is about average for companies of similar size in the German market ($USD4.53M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Foss
President3.6yrsUS$4.85m0.091% $10.8m
Kevin Williams
CFO & Treasurer19.1yrsUS$1.91m0.049% $5.8m
Gregory Adelson
Chief Operating Officer0.3yrsUS$800.67k0.010% $1.2m
Teddy Bilke
VP & CTO0.3yrsUS$776.12k0.034% $4.1m
Renee Swearingen
GM of Finance & Accounting and Corporate Controller13.8yrsno datano data
Craig Morgan
General Counsel & Secretary3.3yrsUS$623.78k0.0023% $268.8k
Jessica Randall
Corporate Communications Manager0yrsno datano data
Steven Tomson
Vice President of Sales & Marketing4.1yrsno data0.013% $1.5m
Stacey Zengel
VP & President of the Jack Henry Banking Division4.9yrsno data0.0046% $542.4k
Russell Bernthal
VP & President of Profitstars0yrsno data0.0086% $1.0m

3.8yrs

Average Tenure

57yo

Average Age

Experienced Management: JHY's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Foss
President3.6yrsUS$4.85m0.091% $10.8m
Thomas Wimsett
Independent Director7.6yrsUS$254.81k0.030% $3.5m
Tom Wilson
Independent Director8.1yrsUS$272.81k0.026% $3.1m
John Prim
Chairman of the Board7.5yrsUS$477.99k0.28% $33.6m
Wesley Brown
Independent Director4.3yrsUS$257.81k0.12% $14.0m
Matthew Flanigan
Vice Chairman & Lead Director8.1yrsUS$288.81k0.058% $6.8m
Jacqueline Fiegel
Independent Director7.6yrsUS$247.81k0.021% $2.5m
Shruti Miyashiro
Independent Director4.9yrsUS$247.81k0.011% $1.3m
Laura Kelly
Independent Director6.4yrsUS$247.81k0.018% $2.1m

7.5yrs

Average Tenure

58yo

Average Age

Experienced Board: JHY's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: JHY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Jack Henry & Associates, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jack Henry & Associates, Inc.
  • Ticker: JHY
  • Exchange: DB
  • Founded: 1976
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$12.884b
  • Listing Market Cap: US$11.843b
  • Shares outstanding: 76.72m
  • Website: https://www.jackhenry.com

Number of Employees


Location

  • Jack Henry & Associates, Inc.
  • 663 West Highway 60
  • PO Box 807
  • Monett
  • Missouri
  • 65708
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JKHYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1985
JHYDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1985
J1KH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. The company offers information and transaction processing solutions for banks ranging from community to multi-billion dollar asset institutions under the Jack Henry Banking brand; core data processing solutions for various credit unions under the Symitar brand; and specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial institutions and corporate entities under the ProfitStars brand. It also provides a suite of integrated applications required to process deposit, loan, and general ledger transactions, as well as to maintain centralized customer/member information; and complementary products and services that enable core bank and credit union clients to respond to evolving customer/member demands. The company’s Jack Henry Banking business brand offers SilverLake, a robust IBM Power System primarily designed for commercial-focused banks; CIF 20/20, a system for the community bank market; and Core Director, a Windows-based client/server system. Its Symitar business brand provides Episys, a robust IBM Power System primarily designed for credit unions; and CruiseNet, a Windows-based client/server system designed primarily for credit unions. In addition, the company offers electronic payment solutions; purchases and resells hardware systems, including servers, workstations, scanners, and other devices; and provides implementation, training, and support services. Jack Henry & Associates, Inc. was founded in 1976 and is headquartered in Monett, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 20:52
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.