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Jack Henry & Associates, Inc. (JKHY)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$133.43 - $303.97$194.21
Multi-Stage$104.42 - $114.06$109.15
Blended Fair Value$151.68
Current Price$148.93
Upside1.85%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS5.26%7.98%2.262.142.021.911.911.751.631.441.261.15
YoY Growth--5.62%5.87%5.87%0.00%9.14%7.31%13.07%14.52%9.02%10.09%
Dividend Yield--1.51%1.21%1.33%1.05%1.16%1.07%1.11%0.90%1.22%1.35%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)480.54
(-) Cash Dividends Paid (M)166.69
(=) Cash Retained (M)313.86
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)96.1160.0736.04
Cash Retained (M)313.86313.86313.86
(-) Cash Required (M)-96.11-60.07-36.04
(=) Excess Retained (M)217.75253.79277.82
(/) Shares Outstanding (M)73.0073.0073.00
(=) Excess Retained per Share2.983.483.81
LTM Dividend per Share2.282.282.28
(+) Excess Retained per Share2.983.483.81
(=) Adjusted Dividend5.275.766.09
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.96%5.96%6.96%
Fair Value$133.43$194.21$303.97
Upside / Downside-10.41%30.40%104.11%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)480.54509.16539.49571.62605.66641.73660.98
Payout Ratio34.69%45.75%56.81%67.87%78.94%90.00%92.50%
Projected Dividends (M)166.69232.94306.49387.98478.09577.56611.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.96%5.96%6.96%
Year 1 PV (M)211.50213.51215.53
Year 2 PV (M)252.67257.51262.39
Year 3 PV (M)290.41298.79307.33
Year 4 PV (M)324.92337.48350.40
Year 5 PV (M)356.38373.69391.66
PV of Terminal Value (M)6,186.826,487.236,799.19
Equity Value (M)7,622.697,968.208,326.49
Shares Outstanding (M)73.0073.0073.00
Fair Value$104.42$109.15$114.06
Upside / Downside-29.89%-26.71%-23.42%

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