DCF Tool

JKHY

Jack Henry & Associates, Inc. – Computer Systems Design Services
Jack Henry is a leading SaaS provider primarily for the financial services industry. It is a S&P 500 company that serves approximately 8,500 clients nationwide through three divisions: Jack Henry Banking®provides innovative solutions to community and regional banks. Symitar® provides industry-leading solutions to credit unions of all sizes; and ProfitStars® offers highly specialized solutions to financial institutions of every asset size, as well as diverse corporate entities outside of the financial services industry. With a heritage that has been dedicated to openness, partnership, and user centricity for more than 40 years, it is well-positioned as a driving market force in cloud-based digital solutions and payment processing services. It empowers its clients and consumers with the human-centered, tech-forward, and insights-driven solutions that will get them where they want to go.
Analysis Results
Intrinsic Value $136.48
Latest Price $182.27
Relative Value 34% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 7.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 407 382
2024 438 384
2025 470 387
2026 505 390
2027 542 393
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11800 million. This corresponds to a present value of 8010 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1940 million. Adding in the terminal value gives a total present value of 9950 million.

There are presently 72.9 million outstanding shares, so the intrinsic value per share is 136.48.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 613,524,000
Current Cash 48,787,000
Current Liabilities 543,830,000
Current Debt 67,000
Non-Cash Working Capital (NCWC) 20,974,000
Change in NCWC 48,979,000
EBIT 474,619,000
Tax Provision 109,351,000
Depreciation and Amortization 177,624,000
Capital Expenditure -191,389,000
Unlevered Free Cash Flow 399,937,406
Current Assets 543,737,000
Current Cash 50,992,000
Current Liabilities 520,860,000
Current Debt 110,000
Non-Cash Working Capital (NCWC) -28,005,000
Change in NCWC 10,969,000
EBIT 398,719,000
Tax Provision 86,256,000
Depreciation and Amortization 175,748,000
Capital Expenditure -157,837,000
Unlevered Free Cash Flow 341,127,427
Current Assets 669,101,000
Current Cash 213,345,000
Current Liabilities 494,845,000
Current Debt 115,000
Non-Cash Working Capital (NCWC) -38,974,000
Change in NCWC -44,832,000
EBIT 380,627,000
Tax Provision 84,408,000
Depreciation and Amortization 171,805,000
Capital Expenditure -177,510,000
Unlevered Free Cash Flow 245,781,453
Current Assets 569,448,000
Current Cash 93,628,000
Current Liabilities 469,962,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,858,000
Change in NCWC 56,658,000
EBIT 347,285,000
Tax Provision 75,350,000
Depreciation and Amortization 160,633,000
Capital Expenditure -170,761,000
Unlevered Free Cash Flow 318,454,149
Current Assets 468,536,000
Current Cash 31,440,000
Current Liabilities 487,896,000
Current Debt 0
Non-Cash Working Capital (NCWC) -50,800,000
Change in NCWC 15,126,000
EBIT 390,475,000
Tax Provision 14,364,000
Depreciation and Amortization 151,986,000
Capital Expenditure -40,135,000
Unlevered Free Cash Flow 503,108,167
Current Assets 520,031,000
Current Cash 114,765,000
Current Liabilities 471,192,000
Current Debt 0
Non-Cash Working Capital (NCWC) -65,926,000
Change in NCWC 15,987,000
EBIT 364,432,000
Tax Provision 121,161,000
Depreciation and Amortization 139,786,000
Capital Expenditure -148,186,000
Unlevered Free Cash Flow 251,690,714
Current Assets 431,929,000
Current Cash 70,310,000
Current Liabilities 443,732,000
Current Debt 200,000
Non-Cash Working Capital (NCWC) -81,913,000
Change in NCWC 13,917,000
EBIT 342,168,000
Tax Provision 111,669,000
Depreciation and Amortization 129,648,000
Capital Expenditure -164,562,000
Unlevered Free Cash Flow 215,191,130
Current Assets 493,499,000
Current Cash 148,313,000
Current Liabilities 443,611,000
Current Debt 2,595,000
Non-Cash Working Capital (NCWC) -95,830,000
Change in NCWC 25,443,000
EBIT 317,865,000
Tax Provision 105,219,000
Depreciation and Amortization 118,996,000
Capital Expenditure -54,409,000
Unlevered Free Cash Flow 302,202,175
Current Assets 390,506,000
Current Cash 70,377,000
Current Liabilities 446,809,000
Current Debt 5,407,000
Non-Cash Working Capital (NCWC) -121,273,000
Change in NCWC -36,924,000
EBIT 288,298,000
Tax Provision 100,855,000
Depreciation and Amortization 107,771,000
Capital Expenditure -33,185,000
Unlevered Free Cash Flow 224,849,679
Current Assets 447,885,000
Current Cash 127,905,000
Current Liabilities 412,258,000
Current Debt 7,929,000
Non-Cash Working Capital (NCWC) -84,349,000
Change in NCWC -18,945,000
EBIT 265,547,000
Tax Provision 83,205,000
Depreciation and Amortization 100,341,000
Capital Expenditure -97,774,000
Unlevered Free Cash Flow 164,139,798
Current Assets 468,649,000
Current Cash 157,313,000
Current Liabilities 402,243,000
Current Debt 25,503,000
Non-Cash Working Capital (NCWC) -65,404,000
Change in NCWC -810,000
EBIT 236,235,000
Tax Provision 76,684,000
Depreciation and Amortization 94,619,000
Capital Expenditure -80,034,000
Unlevered Free Cash Flow 171,814,285

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