Jack Henry & Associates Inc (JKHY, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. Currently trading at $173.01 per share, the company has experienced a daily increase of 0.66% and a notable three-month growth of 7.36%. A detailed analysis using the GF Score indicates that Jack Henry & Associates Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which has been backtested from 2006 to 2021, suggests that stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Jack Henry & Associates Inc boasts a GF Score of 97, indicating a strong potential for market-leading performance.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 7/10
Understanding Jack Henry & Associates Inc's Business
Jack Henry & Associates Inc, with a market cap of $12.61 billion and annual sales of $2.22 billion, is a leading provider of core processing and complementary services for U.S. banks and credit unions, focusing primarily on small and midsize institutions. The company's operating margin stands at 22.09%, reflecting its efficient operations and strong market position.
Financial Strength Breakdown
Jack Henry & Associates Inc's financial robustness is evident in its Interest Coverage ratio of 29.87, significantly surpassing the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 9.81 indicates a low probability of financial distress, and a Debt-to-Revenue ratio of 0.07 showcases prudent debt management.
Profitability and Growth Metrics
Jack Henry & Associates Inc's profitability is highlighted by its impressive Profitability Rank and consistent gross margin improvement over the past five years. The company's commitment to growth is evident from its 9.3% three-year revenue growth rate and strong EBITDA growth, which underscores its expanding operational efficiency.
Conclusion
Considering Jack Henry & Associates Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
