NasdaqGS:JKHY

Stock Analysis Report

Executive Summary

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


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: JKHY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.9%

JKHY

13.5%

US IT

10.5%

US Market


1 Year Return

7.4%

JKHY

-3.5%

US IT

-11.5%

US Market

Return vs Industry: JKHY exceeded the US IT industry which returned -3.5% over the past year.

Return vs Market: JKHY exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

JKHYIndustryMarket
7 Day10.9%13.5%10.5%
30 Day-3.6%-14.5%-15.4%
90 Day1.7%-17.4%-21.4%
1 Year8.6%7.4%-2.5%-3.5%-9.6%-11.5%
3 Year65.6%60.1%59.2%52.4%12.6%5.4%
5 Year127.3%113.8%89.2%72.7%32.8%18.1%

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

Valuation

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

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JKHY ($149.03) is trading below our estimate of fair value ($152.68)

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


Price To Earnings Ratio

PE vs Industry: JKHY is poor value based on its PE Ratio (40.7x) compared to the IT industry average (24.8x).

PE vs Market: JKHY is poor value based on its PE Ratio (40.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: JKHY is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: JKHY is overvalued based on its PB Ratio (7.7x) compared to the US IT industry average (2.7x).


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?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JKHY's forecast earnings growth (9.7% per year) is above the savings rate (1.7%).

Earnings vs Market: JKHY's earnings (9.7% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: JKHY's revenue (6.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JKHY's revenue (6.8% 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 JKHY'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: JKHY has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: JKHY had negative earnings growth (-2.4%) over the past year, making it difficult to compare to the IT industry average (14.3%).


Return on Equity

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


Next Steps

Financial Health

How is Jack Henry & Associates's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Debt Level: JKHY is debt free.

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

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

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


Balance Sheet

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

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


Next Steps

Dividend

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

1.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JKHY's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: JKHY's dividend (1.15%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: JKHY's dividends in 3 years are forecast to be well covered by earnings (35.6% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Dave Foss (57yo)

3.67s

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 ($USD4.85M) is below average for companies of similar size in the US market ($USD11.74M).

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
President3.67yrsUS$4.85m0.091% $10.4m
Kevin Williams
CFO & Treasurer19.17yrsUS$1.91m0.049% $5.6m
Gregory Adelson
Chief Operating Officer0.33yrUS$800.67k0.010% $1.2m
Teddy Bilke
VP & CTO0.33yrUS$776.12k0.034% $3.9m
Renee Swearingen
GM of Finance & Accounting and Corporate Controller13.83yrsno datano data
Craig Morgan
General Counsel & Secretary3.33yrsUS$623.78k0.0023% $259.5k
Jessica Randall
Corporate Communications Managerno datano datano data
Steven Tomson
Vice President of Sales & Marketing4.17yrsno data0.011% $1.3m
Stacey Zengel
VP & President of the Jack Henry Banking Division5yrsno data0.0046% $523.7k
Russell Bernthal
VP & President of Profitstarsno datano data0.0090% $1.0m

3.9yrs

Average Tenure

57yo

Average Age

Experienced Management: JKHY's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Foss
President3.67yrsUS$4.85m0.091% $10.4m
Thomas Wimsett
Independent Director7.67yrsUS$254.81k0.030% $3.4m
Tom Wilson
Independent Director8.17yrsUS$272.81k0.026% $3.0m
John Prim
Chairman of the Board7.58yrsUS$477.99k0.27% $30.7m
Wesley Brown
Independent Director4.33yrsUS$257.81k0.12% $13.6m
Matthew Flanigan
Vice Chairman & Lead Director8.17yrsUS$288.81k0.058% $6.6m
Jacqueline Fiegel
Independent Director7.67yrsUS$247.81k0.021% $2.4m
Shruti Miyashiro
Independent Director5yrsUS$247.81k0.011% $1.2m
Laura Kelly
Independent Director6.5yrsUS$247.81k0.019% $2.1m

7.6yrs

Average Tenure

58yo

Average Age

Experienced Board: JKHY's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JKHY insiders have sold more shares than they have bought 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: JKHY
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$11.434b
  • 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
JHYBRSE (Berne Stock Exchange)YesCommon StockCHCHFNov 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 Analysis2020/03/28 01:18
End of Day Share Price2020/03/27 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.