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JKHY

Jack Henry & AssociatesNasdaqGS:JKHY Stock Report

Market Cap

US$12.6b

7D

1.6%

1Y

6.4%

Updated

24 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.

Jack Henry & Associates Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Jack Henry & Associates
Historical stock prices
Current Share PriceUS$171.38
52 Week HighUS$141.65
52 Week LowUS$179.98
Beta0.60
1 Month Change-1.19%
3 Month Change2.88%
1 Year Change6.45%
3 Year Change7.06%
5 Year Change100.33%
Change since IPO170,093.75%

Recent News & Updates

Shareholder Returns

JKHYUS ITUS Market
7D1.6%0.7%-0.5%
1Y6.4%30.5%37.5%

Return vs Industry: JKHY underperformed the US IT industry which returned 30.5% over the past year.

Return vs Market: JKHY underperformed the US Market which returned 37.5% over the past year.

Price Volatility

Is JKHY's price volatile compared to industry and market?
JKHY volatility
JKHY Beta0.60
Industry Beta1.18
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
19766,714Dave Fosshttps://www.jackhenry.com

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, Payments, Complementary, and Corporate and Other. 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.

Jack Henry & Associates Fundamentals Summary

How do Jack Henry & Associates's earnings and revenue compare to its market cap?
JKHY fundamental statistics
Market CapUS$12.61b
Earnings (TTM)US$311.47m
Revenue (TTM)US$1.76b

40.7x

P/E Ratio

7.2x

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)4.21
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?

40.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JKHY ($171.38) is trading above our estimate of fair value ($152.41)

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 (40.7x) compared to the US IT industry average (35.2x).

PE vs Market: JKHY is poor value based on its PE Ratio (40.7x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: JKHY is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: JKHY is overvalued based on its PB Ratio (9.6x) compared to the US IT industry average (5.1x).


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?

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JKHY's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: JKHY's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.59%).


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 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$12.610b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 22:12
End of Day Share Price2021/09/24 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.