Jack Henry Gross Profit vs. Price To Earnings To Growth

JKHY Stock  USD 172.50  1.38  0.81%   
Based on the key profitability measurements obtained from Jack Henry's financial statements, Jack Henry Associates may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Jack Henry's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1985-09-30
Previous Quarter
232.6 M
Current Value
257.6 M
Quarterly Volatility
71.4 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Jack Henry's Days Sales Outstanding is fairly stable compared to the past year. Days Of Sales Outstanding is likely to rise to 111.64 in 2024, whereas Price To Sales Ratio is likely to drop 3.24 in 2024. At this time, Jack Henry's Operating Income is fairly stable compared to the past year. Income Before Tax is likely to rise to about 522.9 M in 2024, whereas Total Other Income Expense Net is likely to drop slightly above 5.6 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.470.4135
Fairly Up
Pretty Stable
Net Profit Margin0.110.1723
Way Down
Pretty Stable
Operating Profit Margin0.170.2209
Significantly Down
Pretty Stable
Pretax Profit Margin0.180.2248
Significantly Down
Very volatile
Return On Assets0.0880.1306
Way Down
Pretty Stable
Return On Equity0.150.2072
Way Down
Pretty Stable
For Jack Henry profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Jack Henry to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Jack Henry Associates utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Jack Henry's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Jack Henry Associates over time as well as its relative position and ranking within its peers.
  

Jack Henry's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
Is Transaction & Payment Processing Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Jack Henry. If investors know Jack will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Jack Henry listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.173
Dividend Share
2.17
Earnings Share
5.47
Revenue Per Share
30.808
Quarterly Revenue Growth
0.052
The market value of Jack Henry Associates is measured differently than its book value, which is the value of Jack that is recorded on the company's balance sheet. Investors also form their own opinion of Jack Henry's value that differs from its market value or its book value, called intrinsic value, which is Jack Henry's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Jack Henry's market value can be influenced by many factors that don't directly affect Jack Henry's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Jack Henry's value and its price as these two are different measures arrived at by different means. Investors typically determine if Jack Henry is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jack Henry's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Jack Henry Associates Price To Earnings To Growth vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Jack Henry's current stock value. Our valuation model uses many indicators to compare Jack Henry value to that of its competitors to determine the firm's financial worth.
Jack Henry Associates is currently regarded as number one stock in gross profit category among its peers. It also is currently regarded as number one stock in price to earnings to growth category among its peers . The ratio of Gross Profit to Price To Earnings To Growth for Jack Henry Associates is about  294,751,296 . At this time, Jack Henry's Gross Profit is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Jack Henry's earnings, one of the primary drivers of an investment's value.

Jack Price To Earnings To Growth vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Jack Henry

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
858.64 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.

Jack Henry

PEG Ratio

 = 

PE Ratio

EPS Growth

 = 
2.91 X
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.

Jack Price To Earnings To Growth Comparison

Jack Henry is currently under evaluation in price to earnings to growth category among its peers.

Jack Henry Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Jack Henry, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Jack Henry will eventually generate negative long term returns. The profitability progress is the general direction of Jack Henry's change in net profit over the period of time. It can combine multiple indicators of Jack Henry, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income489.4 M513.9 M
Income Before Tax498 M522.9 M
Total Other Income Expense Net8.6 M5.6 M
Net Income381.8 M400.9 M
Income Tax Expense116.2 M122 M
Net Income Applicable To Common Shares421.6 M442.7 M
Net Income From Continuing Ops381.8 M318.2 M
Non Operating Income Net Other1.3 M1.1 M
Interest Income25 M26.3 M
Net Interest Income8.6 M9.1 M
Change To Netincome-27.7 M-26.3 M
Net Income Per Share 5.24  5.50 
Income Quality 1.49  1.09 
Net Income Per E B T 0.77  0.55 

Jack Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Jack Henry. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Jack Henry position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Jack Henry's important profitability drivers and their relationship over time.

Use Jack Henry in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Jack Henry position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jack Henry will appreciate offsetting losses from the drop in the long position's value.

Jack Henry Pair Trading

Jack Henry Associates Pair Trading Analysis

The ability to find closely correlated positions to Jack Henry could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Jack Henry when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Jack Henry - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Jack Henry Associates to buy it.
The correlation of Jack Henry is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Jack Henry moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Jack Henry Associates moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Jack Henry can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Jack Henry position

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Munis Funds
Munis Funds Theme
Funds or Etfs that invest in fixed income securities issued by states, cities, and towns as well as other public entities. The Munis Funds theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Munis Funds Theme or any other thematic opportunities.
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Additional Tools for Jack Stock Analysis

When running Jack Henry's price analysis, check to measure Jack Henry's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Jack Henry is operating at the current time. Most of Jack Henry's value examination focuses on studying past and present price action to predict the probability of Jack Henry's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Jack Henry's price. Additionally, you may evaluate how the addition of Jack Henry to your portfolios can decrease your overall portfolio volatility.