NasdaqGS:JKHY

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Executive Summary

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

Rewards

Earnings are forecast to grow 12.85% per year

Earnings grew by 7.5% over the past year

Risk Analysis

No risks detected for JKHY from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: JKHY's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.3%

JKHY

-0.2%

US IT

0.7%

US Market


1 Year Return

5.9%

JKHY

30.1%

US IT

22.2%

US Market

Return vs Industry: JKHY underperformed the US IT industry which returned 30.7% over the past year.

Return vs Market: JKHY underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

JKHYIndustryMarket
7 Day1.3%-0.2%0.7%
30 Day5.4%15.2%11.8%
90 Day-3.5%5.6%8.6%
1 Year7.0%5.9%31.4%30.1%25.0%22.2%
3 Year42.7%38.1%101.4%93.5%49.4%39.5%
5 Year118.3%105.9%182.1%162.5%100.2%78.1%

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

Valuation

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

41.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JKHY ($159.98) is trading above our estimate of fair value ($118.71)

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 (41.1x) compared to the US IT industry average (36.1x).

PE vs Market: JKHY is poor value based on its PE Ratio (41.1x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: JKHY is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: JKHY is overvalued based on its PB Ratio (7.9x) compared to the US IT industry average (4x).


Next Steps

Future Growth

How is Jack Henry & Associates forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JKHY's forecast earnings growth (12.8% per year) is above the savings rate (2.2%).

Earnings vs Market: JKHY's earnings (12.8% per year) are forecast to grow slower than the US market (21.8% per year).

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

Revenue vs Market: JKHY's revenue (6.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: JKHY'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: JKHY's Return on Equity is forecast to be high in 3 years time (23.6%)


Next Steps

Past Performance

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

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JKHY has high quality earnings.

Growing Profit Margin: JKHY's current net profit margins (17.4%) are higher than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: JKHY's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: JKHY's earnings growth over the past year (7.5%) exceeds its 5-year average (5.5% per year).

Earnings vs Industry: JKHY earnings growth over the past year (7.5%) exceeded the IT industry 3.2%.


Return on Equity

High ROE: JKHY's Return on Equity (19.3%) 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 ($574.5M) exceed its short term liabilities ($407.4M).

Long Term Liabilities: JKHY's short term assets ($574.5M) exceed its long term liabilities ($383.9M).


Debt to Equity History and Analysis

Debt Level: JKHY is debt free.

Reducing Debt: JKHY currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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


Next Steps

Dividend

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

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JKHY's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: JKHY's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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 (43.4%), 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 (43.5% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Dave Foss (58 yo)

4.42yrs

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. Mr. Foss is a Director of CNO F...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD11.02M) is about average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Foss
President4.42yrsUS$11.02m0.12%
$ 14.7m
Kevin Williams
CFO & Treasurer19.92yrsUS$2.20m0.059%
$ 7.2m
Gregory Adelson
Chief Operating Officer1.08yrsUS$1.64m0.013%
$ 1.6m
Craig Morgan
General Counsel & Secretary4.08yrsUS$2.04m0.0051%
$ 617.8k
Steven Tomson
Senior VP and Chief Sales & Marketing Officer4.92yrsUS$1.08m0.0088%
$ 1.1m
Renee Swearingen
GM of Finance & Accounting and Corporate Controller14.58yrsno datano data
Teddy Bilke
Senior VP & CTO1.08yrsUS$776.12k0.034%
$ 4.2m
Jessica Randall
Corporate Communications Managerno datano datano data
Stacey Zengel
Senior VP & President of Jack Henry Banking5.75yrsno data0.0077%
$ 945.0k
Russell Bernthal
Senior VP & President of ProfitStarsno datano data0.0097%
$ 1.2m
Shanon McLachlan
President of Symitar Division1.08yrsno datano data
Ronald Moses
VP and GM of Consumer & Commercial Solutionsno datano data0.015%
$ 1.8m

4.4yrs

Average Tenure

58yo

Average Age

Experienced Management: JKHY's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Foss
President4.42yrsUS$11.02m0.12%
$ 14.7m
Thomas Wimsett
Independent Director8.42yrsUS$249.34k0.030%
$ 3.7m
Tom Wilson
Independent Director8.92yrsUS$276.34k0.0054%
$ 664.2k
John Prim
Chairman of the Board8.33yrsUS$379.34k0.25%
$ 31.1m
Wesley Brown
Independent Director5.08yrsUS$259.84k0.12%
$ 14.3m
Matthew Flanigan
Independent Vice Chairman & Lead Director8.92yrsUS$292.34k0.059%
$ 7.2m
Jacqueline Fiegel
Independent Director8.42yrsUS$241.34k0.021%
$ 2.6m
Shruti Miyashiro
Independent Director5.75yrsUS$252.34k0.010%
$ 1.3m
Laura Kelly
Independent Director7.25yrsUS$241.34k0.016%
$ 1.9m

8.3yrs

Average Tenure

59yo

Average Age

Experienced Board: JKHY's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$12.209b
  • Shares outstanding: 76.32m
  • 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 transacti...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:08
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.