Jack Henry & Associates Inc (JKHY, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial position. With a current share price of $177.97, despite a daily loss of 0.97%, the company has shown a promising three-month growth of 8.95%. A detailed analysis, supported by the GF Score, indicates that Jack Henry & Associates Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Jack Henry & Associates Inc boasts a GF Score of 97 out of 100, indicating a high potential for outperformance.
Understanding Jack Henry & Associates Inc's Business
Jack Henry & Associates Inc, with a market cap of $12.98 billion and annual sales of $2.22 billion, operates at a robust operating margin of 22.09%. The company is a leading provider of core processing and complementary services like electronic funds transfer and payment processing, primarily serving small to midsize banks. Currently, Jack Henry supports nearly 1,000 banks and over 700 credit unions, highlighting its significant impact on the banking sector.
Financial Strength Breakdown
Jack Henry & Associates Inc's financial robustness is evident in its Financial Strength Rank of 8/10. The company's Interest Coverage ratio stands at an impressive 29.87, significantly above the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 10.08 and a low Debt-to-Revenue ratio of 0.07 further solidify its financial health.
Profitability and Growth Metrics
Jack Henry & Associates Inc's Profitability Rank is impressive at 9/10. The company has demonstrated a consistent increase in Gross Margin over the past five years, reflecting its efficiency in converting revenue into profit. Its Predictability Rank of 5 stars indicates reliable operational performance, which is crucial for investor confidence.
Jack Henry & Associates Inc also excels in growth, with a Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate of 9.3% is robust, complemented by significant EBITDA growth over the past few years.
Conclusion
Considering Jack Henry & Associates Inc's strong 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 using 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.
