$185.98
arrow_drop_up0.19%Is JKHY a Buy or Sell based on AI Analysis?
Fundamental Analysis
One of the key indicators from the fundamental analysis of Jack Henry & Associates Inc is its strong profitability metrics. With a net margin of 17.65% and a return on equity of 23.06%, the company is generating healthy returns for its shareholders. Additionally, the company has a solid operating margin of 21.8%, indicating efficient operational management. Another important fundamental indicator is the company's dividend yield and growth. Jack Henry & Associates Inc offers a dividend yield of 1.28%, with annual dividends per share of $2.08. The company has a payout ratio of 41.29%, showing that it is able to sustain its dividend payments while also reinvesting in its growth. Furthermore, the company has a consistent dividend growth rate of 6.03%, indicating a commitment to returning value to shareholders over the long term.
Positive Development
Jack Henry & Associates has announced an increase in its dividend to $0.55, indicating the company's commitment to returning value to shareholders. This is a positive development as it could attract long-term investors and increase shareholder confidence. The company's stock has shown resilience in the face of overall market volatility, with its stock price increasing from 173.10 to 175.19 in the week from 2024-02-20 to 2024-02-27. The company's gross margin has been consistently above 0.40, indicating a healthy profit margin.
Negative Development
Despite its positive developments, the company's stock has underperformed in some weeks, which could indicate concerns about the company's performance. The company's payout ratio is high, indicating that the company is paying out a significant portion of its earnings in dividends, which could be a concern for investors looking for growth opportunities. The company's total debt to equity ratio is 0.1479, indicating that the company's financial health is not ideal.
Technical Analysis
Jack Henry & Associates Inc (JKHY) is currently displaying a neutral technical rating, with indicators such as ATR signaling a buy while RSI, MACD, ADX, WILLR, and ROC are indicating a hold. The stock has a beta of 0.66, suggesting it is less volatile than the overall market. Furthermore, the stock has a strong return on equity of 23.06% and a return on assets of 11.35%, indicating efficient use of assets to generate profits. The stock is currently trading at $173.55, with a 52-week high of $178.37 and a 52-week low of $136.57, showing stability in its price range. In terms of technical analysis, Jack Henry & Associates Inc has a trailing PE ratio of 33.65 and a forward annual dividend yield of 1.28%. The stock has a strong free cash flow margin of 8.4% and a price-to-sales ratio of 5.8, indicating the company's solid financial health. Additionally, the stock has a technical buy indicator count of 1 for the month and a technical sell indicator count of 2, with CCI and STOCHRSI signaling a sell. Overall, the company's technical analysis suggests a stable performance with strong financial metrics supporting its current stock price.
Conclusion and recommendation
Based on the data provided, Jack Henry & Associates Inc (JKHY) appears to be a solid investment opportunity in the technology sector. With a current stock price of $173.55 and a market capitalization of $12.65 billion, the company has shown consistent growth with a positive trend in key financial metrics. Jack Henry & Associates Inc has a strong dividend yield of 1.28%, demonstrating stability and potential for long-term returns. Additionally, the company's financial health is evident in its robust balance sheet, with assets totaling $2.75 billion and liabilities at $1.03 billion, resulting in a healthy debt-to-equity ratio of 0.18. Furthermore, Jack Henry & Associates Inc's strong return on equity of 23.06% showcases effective management and strategic decision-making. In conclusion, Jack Henry & Associates Inc (JKHY) presents a compelling investment opportunity for investors seeking exposure to the technology sector. The company's consistent growth, strong financial performance, and shareholder-friendly dividend policy make it an attractive proposition for long-term investors. With a solid track record and a market score of 59, Jack Henry & Associates Inc is well-positioned for continued success and shareholder value creation. Investors looking for a stable and profitable investment in the technology sector may consider adding JKHY to their portfolio for potential growth and returns.