JKHY

Jack Henry & AssociatesNasdaqGS:JKHY Stock Report

Market Cap

US$12.4b

7D

0.4%

1Y

2.9%

Updated

22 Sep, 2021

Data

Company Financials +
JKHY fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends4/6

JKHY Overview

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

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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: JKHY's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

JKHY

-1.8%

US IT

-1.8%

US Market


1 Year Return

2.9%

JKHY

22.3%

US IT

31.5%

US Market

Return vs Industry: JKHY underperformed the US IT industry which returned 24.7% over the past year.

Return vs Market: JKHY underperformed the US Market which returned 33% over the past year.


Shareholder returns

JKHYIndustryMarket
7 Day0.4%-1.8%-1.8%
30 Day-5.3%-1.4%-0.9%
90 Day2.1%-2.1%0.8%
1 Year4.1%2.9%23.3%22.3%33.5%31.5%
3 Year8.6%5.1%74.7%69.2%57.5%47.8%
5 Year105.2%93.9%192.8%172.8%119.1%95.3%

Long-Term 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

Jack Henry & Associates Fundamentals Summary

How do Jack Henry & Associates's earnings and revenue compare to its market cap?
JKHY fundamental statistics
Market CapUS$12.42b
Earnings (TTM)US$311.47m
Revenue (TTM)US$1.76b

39.9x

P/E Ratio

7.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
JKHY income statement (TTM)
RevenueUS$1.76b
Cost of RevenueUS$1.06b
Gross ProfitUS$694.83m
ExpensesUS$383.36m
EarningsUS$311.47m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.12
Gross Margin39.52%
Net Profit Margin17.71%
Debt/Equity Ratio7.6%

How did JKHY perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

43%

Payout Ratio

Valuation

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

39.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JKHY ($167.83) is trading above our estimate of fair value ($152.85)

Significantly Below Fair Value: JKHY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JKHY is poor value based on its PE Ratio (39.9x) compared to the US IT industry average (34.1x).

PE vs Market: JKHY is poor value based on its PE Ratio (39.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: JKHY is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: JKHY is overvalued based on its PB Ratio (9.4x) compared to the US IT industry average (5.3x).


Future Growth

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

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JKHY's forecast earnings growth (10% per year) is above the savings rate (2%).

Earnings vs Market: JKHY's earnings (10% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: JKHY's revenue (7.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: JKHY's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JKHY's Return on Equity is forecast to be high in 3 years time (28.4%)


Past Performance

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

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JKHY has high quality earnings.

Growing Profit Margin: JKHY's current net profit margins (17.7%) are higher than last year (17.5%).


Past Earnings Growth Analysis

Earnings Trend: JKHY's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: JKHY's earnings growth over the past year (5%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: JKHY earnings growth over the past year (5%) underperformed the IT industry 28%.


Return on Equity

High ROE: JKHY's Return on Equity (23.6%) is considered high.


Financial Health

How is Jack Henry & Associates's financial position?


Financial Position Analysis

Short Term Liabilities: JKHY's short term assets ($543.7M) exceed its short term liabilities ($520.9M).

Long Term Liabilities: JKHY's short term assets ($543.7M) exceed its long term liabilities ($496.0M).


Debt to Equity History and Analysis

Debt Level: JKHY's debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: JKHY had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: JKHY's debt is well covered by operating cash flow (462.1%).

Interest Coverage: JKHY's interest payments on its debt are well covered by EBIT (401.1x coverage).


Balance Sheet


Dividend

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

1.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JKHY's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: JKHY's dividend (1.1%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 (43.2%), 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 (41.6% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Dave Foss (59 yo)

5.17yrs

Tenure

US$11,015,251

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. He joined Jack Henry in 1999. M...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD11.02M) is about average for companies of similar size in the US market ($USD11.33M).

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


Leadership Team

Experienced Management: JKHY's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: JKHY's board of directors are considered experienced (8 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$12.422b
  • Shares outstanding: 74.01m
  • 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


Biography

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. It operates through four segments: Core, Pay...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:11
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.