Jack Henry & Associates, Inc. (JKHY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AppLovin Corp.

Okta, Inc.

Jack Henry & Associates, Inc.

Manhattan Associates, Inc.

Gen Digital Inc.

Aspen Technology, Inc.

Snap, Inc.

Unity Software, Inc.

Bill Holdings, Inc.

Trimble, Inc.

Dynatrace, Inc.

Why is Jack Henry & Associates, Inc. ?

High Management Efficiency with a high ROCE of 26.23%

Company has a low Debt to Equity ratio (avg) at times

Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at USD 708.21 MM
ROCE(HY) Highest at 24.28%
DIVIDEND PER SHARE(HY) Highest at USD 7.51

With ROCE of 28.93%, it has a very attractive valuation with a 7.74 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.41%, its profits have risen by 25.2% ; the PEG ratio of the company is 1.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Jack Henry & Associates, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Jack Henry & Associates, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jack Henry & Associates, Inc.

-6.41%

0.03

24.11%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.53%

EBIT Growth (5y)

10.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.31

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

1.09

Tax Ratio

22.87%

Dividend Payout Ratio

36.22%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

26.23%

ROE (avg)

23.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.75

EV to EBIT

26.76

EV to EBITDA

20.19

EV to Capital Employed

7.74

EV to Sales

6.92

PEG Ratio

1.28

Dividend Yield

100.37%

ROCE (Latest)

28.93%

ROE (Latest)

23.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 708.21 MM

ROCE(HY)

Highest at 24.28%

DIVIDEND PER SHARE(HY)

Highest at USD 7.51

RAW MATERIAL COST(Y)

Fallen by -3.24% (YoY

-3What is not working for the Company

INTEREST(Q)

At USD 1.14 MM has Grown at 28.89%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 33.69%

Here's what is working for Jack Henry & Associates, Inc.

Operating Cash Flow

Highest at USD 708.21 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 7.51 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -3.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 53.16 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Jack Henry & Associates, Inc.

Interest

At USD 1.14 MM has Grown at 28.89%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 33.69%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)