Jack Henry & Associates is a provider of technology solutions and payment processing services primarily for the financial services industry. The company was founded in 1976 and is founded in Monett, Missouri.
JKHY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for JKHY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Henry Jack & Associates Inc ranked in the 20th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Henry Jack & Associates Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 554.89 -- which is good for besting 98.37% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than just 1.58% of the free cash flow producing stocks we're observing.
JKHY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 59.74% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as JKHY, try MELI, PLT, HPQ, IIIV, and IIJIY.
Computer Service Professionals to acquire the CruiseNet® core solution and the core-related business operations from Jack Henry & Associates (JKHY).The CruiseNet platform is built on a .Net architecture and represents the next generation in core processing systems for small and mid-sized credit unions.Financial terms are not disclosed....
When Jack Henry & Associates (JKHY) announced fiscal fourth quarter earnings results on August 19, the company beat its EPS estimate by $0.02, but its reported revenue came up short of estimates and its fiscal 2021 forecast was below analysts’ expectations. As a result of the revenue shortfall and the...
Rick Pendergraft on Seeking Alpha | September 21, 2020
How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]
Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Jack Henry announced today that JHA OpenAnywhereTM received the Best Banking Infrastructure Platform Award from FinTech Breakthrough, an independent organization that recognizes the top companies, technologies, and products in the global fintech market.