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.

Rewards

Earnings are forecast to grow 9.42% per year

Pays a reliable dividend of 1.07%

Risk Analysis

Profit margins (17.4%) are lower than last year (25.4%)



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

-1.0%

JKHY

0.03%

US IT

1.1%

US Market


1 Year Return

10.6%

JKHY

30.3%

US IT

17.8%

US Market

Return vs Industry: JKHY underperformed the US IT industry which returned 30.3% over the past year.

Return vs Market: JKHY underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

JKHYIndustryMarket
7 Day-1.0%0.03%1.1%
30 Day-0.5%2.5%1.4%
90 Day2.5%2.0%3.9%
1 Year11.9%10.6%31.6%30.3%20.3%17.8%
3 Year70.1%64.4%96.0%87.6%44.8%35.4%
5 Year157.8%142.2%139.8%118.7%71.3%52.4%

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?

41.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JKHY ($148.71) is trading above our estimate of fair value ($105.88)

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 (41.3x) compared to the IT industry average (30.4x).

PE vs Market: JKHY is poor value based on its PE Ratio (41.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: JKHY is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: JKHY is overvalued based on its PB Ratio (7.7x) compared to the US IT industry average (3.7x).


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?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JKHY's forecast earnings growth (9.4% per year) is above the savings rate (1.7%).

Earnings vs Market: JKHY's earnings (9.4% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: JKHY's revenue (6.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: JKHY's revenue (6.1% 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?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JKHY has high quality earnings.

Growing Profit Margin: JKHY's current net profit margins (17.4%) are lower than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: JKHY's earnings have grown by 10.3% 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 (-27.2%) over the past year, making it difficult to compare to the IT industry average (17%).


Return on Equity

High ROE: JKHY's Return on Equity (18.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jack Henry & Associates's financial position?


Financial Position Analysis

Short Term Liabilities: JKHY's short term assets ($484.1M) exceed its short term liabilities ($393.1M).

Long Term Liabilities: JKHY's short term assets ($484.1M) exceed its long term liabilities ($356.2M).


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 0.08%.

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?

1.07%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: JKHY's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: JKHY's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.67%).


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 (43.6%), 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 (37.3% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Dave Foss (57yo)

3.4yrs

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 ($USD4.85M) is below average for companies of similar size in the US market ($USD10.90M).

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


Management Age and Tenure

3.7yrs

Average Tenure

57yo

Average Age

Experienced Management: JKHY's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

58yo

Average Age

Experienced Board: JKHY's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: JKHY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$154,29003 Dec 19
Stacey Zengel
EntityIndividual
Role
Unit President
VP & President of the Jack Henry Banking Division
Shares1,013
Max PriceUS$152.31
SellUS$219,32108 Nov 19
Mark Forbis
EntityIndividual
Shares1,479
Max PriceUS$148.29
SellUS$263,88006 Nov 19
Ronald Moses
EntityIndividual
Shares1,800
Max PriceUS$146.60
SellUS$115,27706 Nov 19
Gregory Adelson
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares786
Max PriceUS$146.66
SellUS$456,00924 Jun 19
Wesley Brown
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,320
Max PriceUS$137.35
SellUS$68,92819 Jun 19
Mark Forbis
EntityIndividual
Shares501
Max PriceUS$137.60
SellUS$53,99110 Jun 19
Wesley Brown
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400
Max PriceUS$134.98
SellUS$125,18225 Mar 19
Russell Bernthal
EntityIndividual
Role
Unit President
VP & President of Profitstars
Shares910
Max PriceUS$137.56
SellUS$134,73920 Mar 19
Mark Forbis
EntityIndividual
Shares1,000
Max PriceUS$134.74
SellUS$100,65004 Mar 19
Ronald Moses
EntityIndividual
Shares750
Max PriceUS$134.20
SellUS$999,21825 Feb 19
John Prim
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares7,575
Max PriceUS$131.91
SellUS$585,79820 Feb 19
Stacey Zengel
EntityIndividual
Role
Unit President
VP & President of the Jack Henry Banking Division
Shares4,388
Max PriceUS$133.50

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kevin Williams (60yo)

    CFO & Treasurer

    • Tenure: 18.9yrs
    • Compensation: US$1.91m
  • Russ Bernthal (61yo)

    VP & President of Profitstars

    • Tenure: 0yrs
  • Renee Swearingen

    GM of Finance & Accounting and Corporate Controller

    • Tenure: 13.6yrs
  • Dave Foss (57yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$4.85m
  • Greg Adelson (55yo)

    Chief Operating Officer

    • Tenure: 0.08yrs
    • Compensation: US$800.67k
  • Ted Bilke (58yo)

    Chief Technology Officer

    • Tenure: 0.08yrs
    • Compensation: US$776.12k
  • Stacey Zengel (56yo)

    VP & President of the Jack Henry Banking Division

    • Tenure: 4.8yrs
  • Craig Morgan (43yo)

    General Counsel & Secretary

    • Tenure: 3.1yrs
    • Compensation: US$623.78k
  • Jessica Randall

    Corporate Communications Manager

    • Tenure: 0yrs
  • Steve Tomson (57yo)

    Vice President of Sales & Marketing

    • Tenure: 3.9yrs

Board Members

  • Tom Wimsett (58yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$254.81k
  • Tom Wilson (57yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$272.81k
  • Jack Prim (64yo)

    Chairman of the Board

    • Tenure: 7.3yrs
    • Compensation: US$477.99k
  • Wes Brown (65yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$257.81k
  • Matt Flanigan (57yo)

    Vice Chairman & Lead Director

    • Tenure: 7.9yrs
    • Compensation: US$288.81k
  • Jacque Fiegel (65yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$247.81k
  • Dave Foss (57yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$4.85m
  • Shruti Miyashiro (48yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$247.81k
  • Laura Kelly (62yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$247.81k

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$11.454b
  • Shares outstanding: 76.94m
  • 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

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 Analysis2019/12/10 23:37
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.