Fact based stock research
Jack Henry & Associates (NasdaqGS:JKHY)

US4262811015

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Jack Henry & Associates stock research in summary

jackhenry.com

ANALYSIS: With an Obermatt Combined Rank of 72 (better than 72% compared with investment alternatives), Jack Henry & Associates (Data Processing & Outsourcing, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Jack Henry & Associates are low in value (priced high) with a consolidated Value Rank of 23 (worse than 77% of alternatives). But they show above-average growth (Growth Rank of 75) and are safely financed (Safety Rank of 86, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 72, is a buy recommendation based on Jack Henry & Associates's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Jack Henry & Associates exhibits low value (Obermatt Value Rank of 23), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 75). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 86) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	23
Growth Rank	75
Safety Rank	86
Combined Rank	72

Country	USA
Industry	Data Processing & Outsourcing
Index	Dividends USA, Employee Focus US, NASDAQ, S&P 500
Size class	Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Jack Henry & Associates

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	54	43	27	23
GROWTH
GROWTH	40	15	53	75
SAFETY
SAFETY	69	91	89	86
SENTIMENT
SENTIMENT	n/a	31	64	^new
360° VIEW
360° VIEW	n/a	25	73	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Jack Henry & Associates is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	54	43	27	23
GROWTH
GROWTH	40	15	53	75
SAFETY
SAFETY	69	91	89	86
COMBINED
COMBINED	54	42	58	72

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Jack Henry & Associates the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 23 (worse than 77% compared with alternatives), Jack Henry & Associates shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Jack Henry & Associates. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 83% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 17 which means that the stock price compared with what market professionals expect for future profits is higher than 83% of comparable companies, indicating a low value concerning Jack Henry & Associates's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 14 which means that the stock price compared with what market professionals expect for future profit levels is higher than 86% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 28 is also low. Compared with invested capital, the stock price is higher than for 72% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 23, is a sell recommendation based on Jack Henry & Associates's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Jack Henry & Associates? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Jack Henry & Associates only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	29	21	18	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	71	16	20	14
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	14	36	19	28
DIVIDEND YIELD
DIVIDEND YIELD	88	83	82	83
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	54	43	27	23

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Jack Henry & Associates; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2024, Jack Henry & Associates shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Jack Henry & Associates. Sales Growth has a value of 52 which means that currently professionals expect the company to grow more than 52% of its competitors. Profit Growth with a value of 60 and Capital Growth with a rank of 83 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 45, which means that stock returns have recently been below 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy recommendation for growth and momentum investors. Jack Henry & Associates has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Jack Henry & Associates, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	31	30	37	52
PROFIT GROWTH
PROFIT GROWTH	71	29	44	60
CAPITAL GROWTH
CAPITAL GROWTH	n/a	12	85	83
STOCK RETURNS
STOCK RETURNS	47	75	27	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	40	15	53	75

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Jack Henry & Associates.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 86 (better than 86% compared with alternatives) for 2024, the company Jack Henry & Associates has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Jack Henry & Associates is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Jack Henry & Associates. Leverage is at a rank of 86, meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors. Liquidity is also good at a rank of 93, meaning the company generates more profit to service its debt than 93% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 19, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 86 (better than 86% compared with alternatives), Jack Henry & Associates has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Jack Henry & Associates. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Jack Henry & Associates and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	45	92	88	86
REFINANCING
REFINANCING	47	19	21	19
LIQUIDITY
LIQUIDITY	89	100	96	93
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	69	91	89	86

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Jack Henry & Associates and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	19	31	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	39	44	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	44	65	^new
MARKET PULSE
MARKET PULSE	n/a	80	83	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	31	64	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Jack Henry & Associates.
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