Jack Henry's fiscal first-quarter results show the company returning to the relatively stable glide path it has been on historically, following a bit of volatility over the past couple of years. We will maintain our $174 per share fair value estimate for the wide-moat company and see shares as modestly undervalued.
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
|
V
|
FI
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.93 | 28.87 | 17.56 |
Price/Book Value | 6.81 | 13.50 | 2.59 |
Price/Sales | 5.35 | 16.15 | 4.24 |
Price/Cash Flow | 20.98 | 17.14 | 13.43 |
|
Metric
|
JKHY
|
V
|
FI
|
|---|---|---|---|
Quick Ratio | 0.68 | 1.07 | 0.16 |
Current Ratio | 1.20 | 1.45 | 1.07 |
Interest Coverage | 26.71 | 33.67 | 5.07 |
|
Metric
|
JKHY
|
V
|
FI
|
|---|---|---|---|
Return on Assets (Normalized) | 14.51% | 20.90% | 5.69% |
Return on Equity (Normalized) | 24.76% | 48.42% | 15.02% |
Return on Invested Capital (Normalized) | 21.12% | 32.06% | 9.83% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
ACN
| Accenture PLC Class A | Rck | $208.7 Bil | |
IBM
| International Business Machines Corp | Xdjtqb | $142.1 Bil | |
FI
| Fiserv Inc | Nhsdnbq | $76.5 Bil | |
INFY
| Infosys Ltd ADR | Rgghh | $71.6 Bil | |
CTSH
| Cognizant Technology Solutions Corp Class A | Gkrgt | $35.8 Bil | |
FIS
| Fidelity National Information Services Inc | Vsttqng | $33.7 Bil | |
WIT
| Wipro Ltd ADR | Tfngd | $24.8 Bil | |
GIB
| CGI Inc Class A | Hffpbnj | $23.4 Bil | |
BR
| Broadridge Financial Solutions Inc | Whrjnk | $22.2 Bil | |
EPAM
| EPAM Systems Inc | Hlhpqhx | $14.8 Bil |
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