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Jack Henry & Associates

Nasdaq:JKHY
Snowflake Description

Excellent balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JKHY
Nasdaq
$11B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. The last earnings update was 41 days ago. More info.


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JKHY Share Price and Events
7 Day Returns
-0.3%
NasdaqGS:JKHY
-0.1%
US IT
1.2%
US Market
1 Year Returns
5.4%
NasdaqGS:JKHY
19.9%
US IT
2.3%
US Market
JKHY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Jack Henry & Associates (JKHY) -0.3% 1.8% 0.2% 5.4% 65.7% 133.7%
US IT -0.1% 3.9% 8.7% 19.9% 88.8% 110.7%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • JKHY underperformed the IT industry which returned 19.9% over the past year.
  • JKHY outperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
JKHY
Industry
5yr Volatility vs Market

JKHY Value

 Is Jack Henry & Associates undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Jack Henry & Associates to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Jack Henry & Associates.

NasdaqGS:JKHY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:JKHY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.012 (1 + (1- 21%) (0.33%))
1.01
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.01 * 5.96%)
8.75%

Discounted Cash Flow Calculation for NasdaqGS:JKHY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Jack Henry & Associates is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:JKHY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.75%)
2019 300.30 Analyst x3 276.14
2020 373.42 Analyst x4 315.76
2021 340.65 Analyst x2 264.88
2022 507.00 Analyst x1 362.51
2023 493.00 Analyst x1 324.14
2024 487.37 Est @ -1.14% 294.66
2025 487.46 Est @ 0.02% 271.01
2026 491.52 Est @ 0.83% 251.28
2027 498.41 Est @ 1.4% 234.31
2028 507.38 Est @ 1.8% 219.34
Present value of next 10 years cash flows $2,814.04
NasdaqGS:JKHY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $507.38 × (1 + 2.73%) ÷ (8.75% – 2.73%)
$8,661.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,661.01 ÷ (1 + 8.75%)10
$3,744.11
NasdaqGS:JKHY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,814.04 + $3,744.11
$6,558.14
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,558.14 / 77.20
$84.95
NasdaqGS:JKHY Discount to Share Price
Calculation Result
Value per share (USD) From above. $84.95
Current discount Discount to share price of $138.17
= -1 x ($138.17 - $84.95) / $84.95
-62.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Jack Henry & Associates is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Jack Henry & Associates's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Jack Henry & Associates's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:JKHY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.76
NasdaqGS:JKHY Share Price ** NasdaqGS (2019-06-19) in USD $138.17
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 34.87x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Jack Henry & Associates.

NasdaqGS:JKHY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:JKHY Share Price ÷ EPS (both in USD)

= 138.17 ÷ 3.76

36.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jack Henry & Associates is overvalued based on earnings compared to the US IT industry average.
  • Jack Henry & Associates is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Jack Henry & Associates's expected growth come at a high price?
Raw Data
NasdaqGS:JKHY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 36.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
9.7%per year
United States of America IT Industry PEG Ratio Median Figure of 66 Publicly-Listed IT Companies 2.45x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:JKHY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 36.74x ÷ 9.7%

3.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jack Henry & Associates is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Jack Henry & Associates's assets?
Raw Data
NasdaqGS:JKHY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.47
NasdaqGS:JKHY Share Price * NasdaqGS (2019-06-19) in USD $138.17
United States of America IT Industry PB Ratio Median Figure of 128 Publicly-Listed IT Companies 4.4x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NasdaqGS:JKHY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:JKHY Share Price ÷ Book Value per Share (both in USD)

= 138.17 ÷ 18.47

7.48x

* Primary Listing of Jack Henry & Associates.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jack Henry & Associates is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Jack Henry & Associates's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Jack Henry & Associates has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

JKHY Future Performance

 How is Jack Henry & Associates expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Jack Henry & Associates expected to grow at an attractive rate?
  • Jack Henry & Associates's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Jack Henry & Associates's earnings growth is positive but not above the United States of America market average.
  • Jack Henry & Associates's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:JKHY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:JKHY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 9.7%
NasdaqGS:JKHY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 6.4%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:JKHY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:JKHY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 2,026 1
2022-06-30 1,895 1
2021-06-30 1,775 448 333 7
2020-06-30 1,667 459 296 11
2019-06-30 1,550 398 270 10
NasdaqGS:JKHY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,603 411 290
2018-12-31 1,597 427 300
2018-09-30 1,568 420 393
2018-06-30 1,537 412 377
2018-03-31 1,476 393 362
2017-12-31 1,456 370 353
2017-09-30 1,447 363 250
2017-06-30 1,431 357 246
2017-03-31 1,414 358 265
2016-12-31 1,394 383 259
2016-09-30 1,378 373 260
2016-06-30 1,355 366 249

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Jack Henry & Associates's earnings are expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
  • Jack Henry & Associates's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:JKHY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Jack Henry & Associates Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:JKHY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 5.22 5.22 5.22 1.00
2022-06-30 4.67 4.67 4.67 1.00
2021-06-30 4.33 4.52 4.17 7.00
2020-06-30 3.86 4.72 3.60 11.00
2019-06-30 3.50 3.51 3.49 10.00
NasdaqGS:JKHY Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.76
2018-12-31 3.89
2018-09-30 5.09
2018-06-30 4.88
2018-03-31 4.68
2017-12-31 4.56
2017-09-30 3.23
2017-06-30 3.16
2017-03-31 3.39
2016-12-31 3.30
2016-09-30 3.29
2016-06-30 3.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Jack Henry & Associates will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Jack Henry & Associates's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Jack Henry & Associates has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

JKHY Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Jack Henry & Associates's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Jack Henry & Associates's year on year earnings growth rate has been positive over the past 5 years.
  • Jack Henry & Associates's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Jack Henry & Associates's 1-year earnings growth is negative, it can't be compared to the US IT industry average.
Earnings and Revenue History
Jack Henry & Associates's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Jack Henry & Associates Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:JKHY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,603.24 290.35 192.20 95.86
2018-12-31 1,596.93 300.19 189.22 95.01
2018-09-30 1,567.86 393.34 185.56 93.44
2018-06-30 1,536.60 376.66 181.81 90.34
2018-03-31 1,476.31 361.89 169.52 89.27
2017-12-31 1,456.03 352.85 167.04 87.49
2017-09-30 1,447.37 250.42 164.88 85.94
2017-06-30 1,431.12 245.79 162.90 84.75
2017-03-31 1,414.32 265.37 160.52 85.38
2016-12-31 1,393.74 259.21 159.99 84.43
2016-09-30 1,378.06 259.75 157.78 82.42
2016-06-30 1,354.65 248.87 157.54 81.23
2016-03-31 1,321.39 225.14 161.23 76.77
2015-12-31 1,297.91 221.97 159.09 74.44
2015-09-30 1,276.33 216.50 154.06 73.26
2015-06-30 1,256.19 211.22 153.37 71.50
2015-03-31 1,237.64 203.21 147.61 69.44
2014-12-31 1,219.37 195.10 145.87 69.41
2014-09-30 1,196.92 189.58 144.81 67.87
2014-06-30 1,173.17 186.72 138.73 66.75
2014-03-31 1,134.29 172.82 139.03 66.17
2013-12-31 1,124.40 176.21 136.56 64.68
2013-09-30 1,114.25 168.36 151.05 64.23
2013-06-30 1,107.52 167.61 147.44 63.20
2013-03-31 1,097.85 172.30 145.74 61.73
2012-12-31 1,072.61 162.97 144.26 61.20
2012-09-30 1,049.77 160.98 128.69 60.59
2012-06-30 1,017.67 152.04 126.36 60.88

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Jack Henry & Associates has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Jack Henry & Associates used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Jack Henry & Associates has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Jack Henry & Associates's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Jack Henry & Associates has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

JKHY Health

 How is Jack Henry & Associates's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Jack Henry & Associates's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Jack Henry & Associates is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Jack Henry & Associates's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Jack Henry & Associates's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 11.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Jack Henry & Associates Company Filings, last reported 2 months ago.

NasdaqGS:JKHY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,426.00 35.00 35.40
2018-12-31 1,391.96 0.00 26.16
2018-09-30 1,368.56 0.00 114.87
2018-06-30 1,266.83 0.00 31.44
2018-03-31 1,223.09 105.00 57.40
2017-12-31 1,174.00 100.00 57.72
2017-09-30 1,037.81 0.00 104.04
2017-06-30 1,032.05 50.00 114.77
2017-03-31 1,012.11 50.00 42.92
2016-12-31 971.41 50.00 64.19
2016-09-30 972.59 0.00 84.52
2016-06-30 996.21 0.20 70.31
2016-03-31 948.87 100.21 54.00
2015-12-31 912.47 100.32 55.13
2015-09-30 954.28 1.11 84.49
2015-06-30 991.53 52.70 148.31
2015-03-31 956.61 77.45 52.80
2014-12-31 922.06 78.81 49.33
2014-09-30 934.47 11.01 39.40
2014-06-30 967.39 9.14 70.38
2014-03-31 1,114.54 15.45 52.24
2013-12-31 1,145.45 9.68 155.50
2013-09-30 1,104.78 17.99 181.79
2013-06-30 1,015.82 15.30 127.91
2013-03-31 1,079.84 132.64 182.05
2012-12-31 1,046.56 129.30 192.85
2012-09-30 1,016.02 132.71 223.69
2012-06-30 983.06 131.67 157.31
  • Jack Henry & Associates's level of debt (2.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.4% vs 2.5% today).
  • Debt is well covered by operating cash flow (1173.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 935.2x coverage).
X
Financial health checks
We assess Jack Henry & Associates's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Jack Henry & Associates has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

JKHY Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.16%
Current annual income from Jack Henry & Associates dividends. Estimated to be 1.16% next year.
If you bought $2,000 of Jack Henry & Associates shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Jack Henry & Associates's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Jack Henry & Associates's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:JKHY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:JKHY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 1.68 3.00
2020-06-30 1.59 4.00
2019-06-30 1.54 3.00
NasdaqGS:JKHY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-06 1.600 1.187
2019-02-11 1.600 1.160
2018-11-15 1.480 1.128
2018-08-27 1.480 0.963
2018-05-07 1.480 1.117
2018-02-12 1.480 1.223
2017-11-10 1.240 1.049
2017-08-21 1.240 1.187
2017-05-08 1.240 1.196
2017-02-13 1.240 1.314
2016-11-11 1.120 1.259
2016-08-22 1.120 1.325
2016-05-09 1.120 1.302
2016-02-16 1.120 1.355
2015-11-11 1.000 1.281
2015-08-24 1.000 1.394
2015-05-11 1.000 1.490
2015-02-17 1.000 1.480
2014-11-14 0.880 1.406
2014-08-25 0.880 1.535
2014-05-05 0.880 1.504
2014-02-10 0.880 1.564
2013-11-14 0.800 1.391
2013-08-26 0.800 1.519
2013-05-06 0.800 1.662
2013-02-11 0.520 1.162
2012-11-15 0.460 1.145
2012-08-27 0.460 1.211
2012-05-04 0.460 1.339
2012-02-06 0.460 1.359
2011-11-18 0.420 1.263
2011-08-22 0.420 1.392
2011-05-09 0.420 1.433
2011-02-04 0.420 1.297
2010-11-10 0.380 1.303
2010-08-23 0.380 1.477
2010-05-10 0.380 1.549
2010-02-08 0.380 1.584
2009-11-11 0.340 1.473
2009-08-24 0.340 1.431

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Jack Henry & Associates's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Jack Henry & Associates's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Jack Henry & Associates afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Jack Henry & Associates has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

JKHY Management

 What is the CEO of Jack Henry & Associates's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave Foss
COMPENSATION $3,918,826
AGE 56
TENURE AS CEO 2.9 years
CEO Bio

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 served as the President of ProfitStars, Inc. at Jack Henry & Associates Inc. from 2004 to July 1, 2014. He has been with ProfitStars, Inc. since 1999 and served as its General Manager since 2006. He was instrumental in the acquisition of the eighteen solution providers that built ProfitStars, Inc. and was responsible for the integration of other acquired companies into the ProfitStars suite. From 1999 to 2003, he served a dual role at Jack Henry as President at the Open Systems group and General Manager at the Complementary Solutions group. In 1999, he arranged the sale of BancTec’s financial solutions division to Jack Henry and Associates. In 1997, Mr. Foss became Vice President of Sales for community banking at BancTec. In 1993, he joined BancTec as Vice President of Professional Services and served as Vice President of Operations. He joined Advanced Computer Systems (ACS) in 1989 as a Sales Manager where he was marketing banking solutions to community banks in the upper Midwest. He began his career in 1985 at NCR as a Systems Engineer. He serves as President and Board Member of Association for Financial Technology. He serves as a Director of Bold Ventures. He serves as a Director of Bold Ventures. He has been a Director of Jack Henry & Associates, Inc. since July 1, 2017 and served as its Director from May 17, 2017 to May 24, 2017. Mr. Foss holds a degree in Computer Science from Minnesota State University.

CEO Compensation
  • Dave's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dave's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Jack Henry & Associates management team in years:

5
Average Tenure
55
Average Age
  • The average tenure for the Jack Henry & Associates management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Dave Foss

TITLE
President
COMPENSATION
$4M
AGE
56
TENURE
2.9 yrs

Kevin Williams

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
59
TENURE
18.4 yrs

Mark Forbis

TITLE
CTO & Executive VP
COMPENSATION
$981K
AGE
55
TENURE
13.1 yrs

Craig Morgan

TITLE
General Counsel & Secretary
COMPENSATION
$624K
AGE
42
TENURE
2.6 yrs

Renee Swearingen

TITLE
General Manager of Finance & Accounting and Corporate Controller
TENURE
13.1 yrs

Jessica Randall

TITLE
Corporate Communications Manager

Steve Tomson

TITLE
General Manager of Sales & Marketing

Stacey Zengel

TITLE
VP & President of the Jack Henry Banking Division
AGE
55
TENURE
4.3 yrs

Ron Moses

TITLE
VP and GM of Consumer & Commercial Solutions
AGE
55

Greg Adelson

TITLE
VP & GM of JHA Payment Solutions
AGE
53
TENURE
5 yrs
Board of Directors Tenure

Average tenure and age of the Jack Henry & Associates board of directors in years:

6.8
Average Tenure
57
Average Age
  • The tenure for the Jack Henry & Associates board of directors is about average.
Board of Directors

Jack Prim

TITLE
Chairman of the Board
COMPENSATION
$315K
AGE
63
TENURE
6.8 yrs

Dave Foss

TITLE
President
COMPENSATION
$4M
AGE
56
TENURE
1.9 yrs

Matt Flanigan

TITLE
Vice Chairman & Lead Director
COMPENSATION
$260K
AGE
56
TENURE
7.4 yrs

Tom Wilson

TITLE
Director
COMPENSATION
$244K
AGE
56
TENURE
7.4 yrs

Jacque Fiegel

TITLE
Director
COMPENSATION
$223K
AGE
64
TENURE
6.9 yrs

Laura Kelly

TITLE
Director
COMPENSATION
$223K
AGE
61
TENURE
5.8 yrs

Wes Brown

TITLE
Director
COMPENSATION
$229K
AGE
64
TENURE
3.6 yrs

Tom Wimsett

TITLE
Director
COMPENSATION
$228K
AGE
57
TENURE
6.9 yrs

Shruti Miyashiro

TITLE
Director
COMPENSATION
$220K
AGE
47
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • Jack Henry & Associates insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Jun 19 Sell Wesley Brown Individual 07. Jun 19 07. Jun 19 -400 $134.98 $-53,991
25. Mar 19 Sell Russell Bernthal Individual 21. Mar 19 21. Mar 19 -910 $137.56 $-125,182
20. Mar 19 Sell Mark Forbis Individual 20. Mar 19 20. Mar 19 -1,000 $134.74 $-134,739
04. Mar 19 Sell Ron Moses Individual 04. Mar 19 04. Mar 19 -750 $134.20 $-100,650
25. Feb 19 Sell John Prim Individual 21. Feb 19 21. Feb 19 -7,575 $131.91 $-999,218
20. Feb 19 Sell Stacey Zengel Individual 15. Feb 19 15. Feb 19 -4,388 $133.50 $-585,798
11. Dec 18 Sell Mark Forbis Individual 10. Dec 18 10. Dec 18 -3,000 $134.91 $-404,727
04. Sep 18 Sell John Prim Individual 31. Aug 18 31. Aug 18 -6,329 $157.40 $-996,174
X
Management checks
We assess Jack Henry & Associates's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Jack Henry & Associates has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

JKHY News

Simply Wall St News

At US$138, Is It Time To Put Jack Henry & Associates, Inc. (NASDAQ:JKHY) On Your Watch List?

The stock’s ratio of 36.69x is currently trading slightly above its industry peers’ ratio of 34.89x, which means if you buy Jack Henry & Associates today, you’d be paying a relatively fair price for it. … And if you believe that Jack Henry & Associates should be trading at this level in the long run, there’s only an insignificant downside when the price falls to its real value. … In addition to this, it seems like Jack Henry & Associates’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued.

Simply Wall St -

Jack Henry & Associates, Inc.'s (NASDAQ:JKHY) 1.2% Dividend Yield Looks Pretty Interesting

(NASDAQ:JKHY) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A slim 1.2% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Jack Henry & Associates could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Jack Henry & Associates has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Conclusion To summarise, shareholders should always check that Jack Henry & Associates's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Boasting A 20% Return On Equity, Is Jack Henry & Associates, Inc. (NASDAQ:JKHY) A Top Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Jack Henry & Associates: 20% = US$290m ÷ US$1.4b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Jack Henry & Associates Have A Good Return On Equity? … Combining Jack Henry & Associates's Debt And Its 20% Return On Equity Although Jack Henry & Associates does use a little debt, its debt to equity ratio of just 0.025 is very low.

Simply Wall St -

Why We Like Jack Henry & Associates, Inc.’s (NASDAQ:JKHY) 23% Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Jack Henry & Associates: 0.23 = US$392m ÷ (US$2.0b - US$331m) (Based on the trailing twelve months to March 2019.) Therefore, Jack Henry & Associates has an ROCE of 23%. … How Jack Henry & Associates's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … What We Can Learn From Jack Henry & Associates's ROCE Low current liabilities and high ROCE is a good combination, making Jack Henry & Associates look quite interesting.

Simply Wall St -

Is Jack Henry & Associates, Inc. (NASDAQ:JKHY) Worth US$134 Based On Its Intrinsic Value?

(NASDAQ:JKHY) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $300.30 $343.73 $421.30 $469.68 $511.28 $547.17 $578.54 $606.49 $631.97 $655.73 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x1 Est @ 11.48% Est @ 8.86% Est @ 7.02% Est @ 5.73% Est @ 4.83% Est @ 4.2% Est @ 3.76% Present Value ($, Millions) Discounted @ 8.92% $275.70 $289.73 $326.03 $333.70 $333.51 $327.69 $318.10 $306.16 $292.89 $279.01 Present Value of 10-year Cash Flow (PVCF)= $3.08b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$656m × (1 + 2.7%) ÷ (8.9% – 2.7%) = US$11b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$11b ÷ ( 1 + 8.9%)10 = $4.63b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $7.71b.

Simply Wall St -

Despite Its High P/E Ratio, Is Jack Henry & Associates, Inc. (NASDAQ:JKHY) Still Undervalued?

We'll look at Jack Henry & Associates, Inc.'s (NASDAQ:JKHY) P/E ratio and reflect on what it tells us about the company's share price. … Jack Henry & Associates has a price to earnings ratio of 38.23, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Shareholders Are Thrilled That The Jack Henry & Associates (NASDAQ:JKHY) Share Price Increased 162%

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Jack Henry & Associates managed to grow its earnings per share at 14% a year. … This EPS growth is lower than the 21% average annual increase in the share price.

Simply Wall St -

Read This Before Buying Jack Henry & Associates, Inc. (NASDAQ:JKHY) Shares

So we'll take a look at whether insiders have been buying or selling shares in Jack Henry & Associates, Inc. … The Last 12 Months Of Insider Transactions At Jack Henry & Associates. … In total, Jack Henry & Associates insiders sold more than they bought over the last year

Simply Wall St -

Why Jack Henry & Associates, Inc. (NASDAQ:JKHY) Is A Financially Healthy Company

Jack Henry & Associates, Inc. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … Check out our latest analysis for Jack Henry & Associates?

Simply Wall St -

Do You Know Jack Henry & Associates, Inc.’s (NASDAQ:JKHY) Cash Situation?

I’ve analysed below, the health and outlook of Jack Henry & Associates’s cash flow, which will help you understand the stock from a cash standpoint. … What is Jack Henry & Associates's cash yield. … Free cash flow (FCF) is the amount of cash Jack Henry & Associates has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

JKHY Company Info

Description

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 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.

Details
Name: Jack Henry & Associates, Inc.
JKHY
Exchange: NasdaqGS
Founded: 1976
$10,667,228,458
77,203,651
Website: http://www.jackhenry.com
Address: Jack Henry & Associates, Inc.
663 West Highway 60,
PO Box 807,
Monett,
Missouri, 65708,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS JKHY Common Stock Nasdaq Global Select US USD 20. Nov 1985
DB JHY Common Stock Deutsche Boerse AG DE EUR 20. Nov 1985
Number of employees
Current staff
Staff numbers
6,307
Jack Henry & Associates employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 23:40
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/06
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.