Jack Henry & Associates Inc (JKHY, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $174.07 and a daily gain of 1.56%, coupled with a three-month change of 6.94%, the company shows promising signs of substantial growth. A detailed analysis using the GF Score indicates that Jack Henry & Associates Inc is poised for significant future success.
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 to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. Jack Henry & Associates Inc boasts a GF Score of 97, signaling strong future performance potential.
Understanding Jack Henry & Associates Inc's Business
Jack Henry & Associates Inc, with a market cap of $12.69 billion and annual sales of $2.22 billion, operates at the forefront of providing core processing and complementary services like electronic funds transfer and payment processing, primarily to small and midsize banks. The company's operating margin stands at 22.09%, reflecting efficient management and a strong competitive position in the financial technology sector.
Financial Strength Breakdown
Jack Henry & Associates Inc's financial robustness is evident through its Financial Strength Rank of 8/10. The company's impressive Interest Coverage ratio of 29.87 and an Altman Z-Score of 9.74 underscore its ability to manage debt and avoid financial distress effectively. Its strategic debt management is further highlighted by a low Debt-to-Revenue ratio of 0.07.
Profitability and Growth Metrics
Jack Henry & Associates Inc's Profitability Rank of 9/10 demonstrates its superior ability to generate earnings relative to its peers. The company has maintained a consistent increase in Gross Margin over the past five years, with the latest figure standing at 41.35%. This trend highlights its efficiency in converting revenue into profit.
Furthermore, the company's commitment to growth is evident from its high Growth Rank of 10/10. Jack Henry & Associates Inc has achieved a 3-Year Revenue Growth Rate of 9.3%, alongside a consistent increase in EBITDA, emphasizing its ongoing expansion and operational success.
Conclusion
Considering Jack Henry & Associates Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's strong position for potential market outperformance. Investors looking for stable and growing investments might find Jack Henry & Associates Inc an attractive option.
For more insights into companies with strong GF Scores, GuruFocus Premium members can explore 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.
