Jack Henry’s reported results were negatively impacted by conditions in the banking sector, but we think underlying results were solid and show the steady progress the wide-moat company is making. We will maintain our $174 fair value estimate and see shares as about fairly valued.
The bank technology business is very stable, characterized by high amounts of recurring revenue and long-term contracts.
Jack Henry's smaller size could put it at a disadvantage on the payments side, an area that continues to grow more important.
|
Metric
|
JKHY
|
FIS
|
FI
|
|---|---|---|---|
Price/Earnings (Normalized) | 31.01 | 17.55 | 19.55 |
Price/Book Value | 6.78 | 2.31 | 3.12 |
Price/Sales | 5.52 | 3.88 | 4.79 |
Price/Cash Flow | 21.43 | 10.44 | 14.74 |
|
Metric
|
JKHY
|
FIS
|
FI
|
|---|---|---|---|
Quick Ratio | 0.74 | 1.14 | 0.14 |
Current Ratio | 1.37 | 1.52 | 1.04 |
Interest Coverage | 26.68 | −9.88 | 4.85 |
|
Metric
|
JKHY
|
FIS
|
FI
|
|---|---|---|---|
Return on Assets (Normalized) | 14.80% | 5.17% | 5.63% |
Return on Equity (Normalized) | 24.75% | 12.86% | 16.02% |
Return on Invested Capital (Normalized) | 21.05% | 8.06% | 10.37% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
ACN
| Accenture PLC Class A | Wvckswfmwb | Gbxz | $196.2 Bil | |
IBM
| International Business Machines Corp | Tlfn | Fwqdr | $156.1 Bil | |
FI
| Fiserv Inc | Yblbxby | Ddbyxv | $90.1 Bil | |
INFY
| Infosys Ltd ADR | Snmcfchb | Fmnxnqw | $71.5 Bil | |
FIS
| Fidelity National Information Services Inc | Rbtgtpm | Pgvcq | $41.2 Bil | |
CTSH
| Cognizant Technology Solutions Corp Class A | Hqkqjnlcw | Svwgvh | $33.7 Bil | |
WIT
| Wipro Ltd ADR | Wmmbkxln | Hzwshxh | $29.0 Bil | |
GIB
| CGI Inc Class A | Ndknwbvg | Qjxbz | $23.9 Bil | |
BR
| Broadridge Financial Solutions Inc | Vpmqsvt | Qczxqb | $22.5 Bil | |
EPAM
| EPAM Systems Inc | Gbzbhkpb | Gnkgp | $14.4 Bil |
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