Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Best Longterm Stock Analysis As of 01 July 2023
NYSE: JKHY (Jack Henry & Associates Inc.)
- Jack Henry & Associates Inc. is a company that provides technology solutions for financial institutions, such as banks and credit unions. We are doing its longterm stock analysis and reviewing its business model which revolves around developing and delivering software and services that help these institutions manage their operations and serve their customers effectively.
- As the financial sector is growing all around the world, Jack Henry company offers a wide range of products and services tailored to the needs of different financial institutions.
- They provide core banking systems, which are like the central hub for managing all the banking operations. These systems handle tasks like processing deposits and withdrawals, managing loans, and keeping track of customer information.
Management of Jack Henry: - David B. Foss – Board Chair and Chief Executive Officer
- Mimi Carsley – Chief Financial Officer and Treasurer
- Gregory R. Adelson – President and Chief Operating Officer
- Renee A. Swearingen – Senior Vice President, Chief Accounting Officer, and Assistant Treasurer
- Stacey E. Zengel – Senior Vice President and President of Jack Henry Bank Solutions
What we think are PROs of Jack Henry:
- Client-Centric Approach: They work closely with financial institutions to understand their specific needs and provide personalized solutions and support.
- This company allows financial institutions to focus on their core business while having confidence in their technology partner.
- Their software systems are built to handle large volumes of transactions securely while maintaining data integrity and privacy.
- Cloud-Based Solutions enable easier integration, faster implementation, and reduced infrastructure costs.
- Jack Henry is under an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintech.
What we think the RISKs are in Jack Henry:
- Cybersecurity Threats: As a provider of technology solutions for financial institutions, Jack Henry & Associates may be susceptible to cybersecurity risks.
- Market Competition: The financial technology industry is highly competitive, with many players offering similar solutions. Jack Henry & Associates faces competition from both established companies and emerging startups
- Dependency on Financial Institutions: Economic downturns, industry consolidation, or financial institutions opting for in-house solutions could potentially reduce the demand for their products and services
Fundamentals:
- Market Cap: $12.13 Billion
- P/E: 34.93
- EPS: 4.79 (10% YOY growth)
- Operating Cash Flow: $410.26 Million
- Profit margins = 17.24%
- ROE= 24.37%
Dividends:
Dividend (Yield) – 1.25% (2x than industry avg.)
Technical for a long-term perspective:
- Trend: Shifting Upward
– Double bottom pattern reversal
– Crossing 200 EMA
– RSI (Weekly) sustainable at 50+ levels
– Bouncing from Lower support
– Increasing in volume.
Entry: Accumulate around 155 to 170
Target: 250
Our Final Thought:
In today’s ERA, everything is dependent on banks and the financial industry and Jack Henry & Associates Inc. provides technology solutions for financial institutions and banks. As many countries are emerging this business will help them by providing payment solutions. But there is also a hidden risk involved, In case of an economic slowdown the company will face difficulties to get fresh orders.
This is the best time to buy this stock because half of the world is facing recession and this stock is trading at lower than the expected price.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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