Everything right except price – gurufocus. com

Jack Henry & Associates ( NASDAQ:JKHY) is a provider of core information processing solutions for community banks and credit unions. What does a computer processor do It services 1,100 banks from de novo banks to midtier banks with assets up to $30 billion, 800 credit unions and over 10,000 nonbanking financial institutions. How many types of processor in computer It has a leadership position in what it does; 80% of the revenue is recurring.

Its 10-K reads: Jack Henry & Associates’ progress and performance have been guided by the focused work ethic and fundamental ideals fostered by the company’s founders 40 years ago:

Jack Henry has a new CEO, David Fross, who is a long-term veteran of the company. What is processor in computer system Foss began his career in 1985 at NCR and held leadership positions at Advanced Computer Systems and BancTec. Computer processor speed definition In 1999, he arranged the sale of BancTec’s financial solutions division to Jack Henry and subsequently served as president of its Open Systems Group and general manager of the Complementary Solutions Group. Which computer processor is best He was named general manager of its ProfitStars division in 2006 and president in 2009; under his leadership, ProfitStars evolved from a startup division into what is now a global brand serving more than 10,000 clients in the financial services industry. What is the fastest computer processor He was named president of Jack Henry in 2014.

Jack Henry & Associates’ CEO since 2003, Jack Prim, was appointed executive chairman. Best computer processor for the money Prim joined Jack Henry through the acquisition of Broadway & Seymour’s Community Banking Division in 1995. Computer processor speed ghz Under his tenure, Jack Henry has seen tremendous growth from 2,800 customers to nearly 11,000 clients and revenue growth from just over $400 million in fiscal 2003 to $1.26 billion in fiscal 2015

Jack Henry broke down segments by customer type (bank and credit union) and by revenue model (licensing, support and service and hardware sales). Latest computer processors available But over the years support and service has grown to 96% of the revenue and 97% of the gross profit with two other revenue sources becoming immaterial. Latest processor in computer Here we only discuss the segments by customer type.

The Bank segment, Jack Henry Banking, is a leading provider of integrated data processing systems to over 1,100 banks with assets up to $30 billion. A computer processor The banking solutions support both in-house and outsourced operating environments with three distinct core processing platforms and more than 100 integrated complementary solutions.

The Credit Union segment, Symitar, is a leading provider of core data processing solutions for credit unions of all sizes, with over 800 credit union customers. Processor of computer Symitar markets two functionally distinct core processing platforms and more than 50 integrated complementary solutions that support both in-house and outsourced operating environments.

Jack Henry has the third brand/subsidiary, ProfitStar, a leading provider of highly specialized products and services to financial institutions that are primarily not core customers of the company. What is the best computer processor right now Jack Henry does not break out ProfitStar’s numbers as a separate segment, but it has given enough space in the company 10-K to indicate that could be the long-term growth engine of the company. Latest computer processor in market Note the new CEO has built this division almost from the ground up.

Jack Henry’s revenue has been growing both organically and through acquisitions. What is considered a fast computer processor The company’s made 29 acquisitions since June 1999. Computer processor speed chart The biggest cluster of acquisitions happened in 2010 right after the financial crisis. Computer processor types In both periods of organic and inorganic growth, Jack Henry maintained high ROIC and enjoyed margin expansion. Best computer processor for video editing This demonstrated Jack Henry’s strong operational, financial and integration expertise. Latest computer processor in india The ROIC has been materially lifted since 2010 since the biggest batch of acquisitions.

Jack Henry feels it has few gaps in the product line and few acquisition opportunities to expand or enter new markets. Function of processor in computer In addition, the market is expensive. Computer processor images Therefore, although constantly looking, it would likely allocate excess capital to dividends and share buybacks. Best computer processor gaming It currently pays a 1.2% dividend yield with payout ratio of 33%. What is the best processor for a computer Since 2013, the company has shrunk its share base by over 8%. Computer processor wiki At this point, we should expect that the growth would largely be organic.

We estimate the revenue growth to be mid- to high single digits on an organic basis. Computer processor speeds comparison According to FDIC data, over the last 19 years, total assets of small banks grew 7% per year. Processor meaning in computer This could be a good indicator of Jack Henry’s top-line growth. Computer processor speed list In fact, the correlation between growth of Jack Henry’s revenue and bank credits at small banks is 97%. What is the use of processor in computer Jack Henry’s revenue is defensive. Best computer processor to buy In fiscal years 2009 and 2010 ending in June, the worst of the financial crisis, Jack Henry still had 6% and 8% organic growth in the support and services segments, which now accounts for 96% of the total revenue.

Jack Henry’s revenue growth is higher in the inorganic expansion period but has been in line with small bank credit’s growth after the acquisition phase largely ended in 2010. Computer latest processor As the interest rate cycle starts to turn, the banks will enjoy rising profitability and could have more spare money to spend. Best computer processor 2016 In addition, new bank services powered by computers could lift the growth even higher. Computer processor speed 2014 Jack Henry is also slowly taking market share from competitors. Use of processor in computer Therefore double-digit revenue growth would not completely surprise us in the next five years.

We estimate that the net income growth will be about 10%, two to three percentage points higher than top-line growth. Check my computer processor speed It appears there is some operating leverage in the business (see chart below). Best computer processor for gaming 2014 Given that bank assets will likely continue to grow and banks margins will likely go up, Jack Henry could continue to enjoy margin expansion in this up cycle.

At current price, share repurchases would lift EPS growth 2.5%. Best computer processor for laptop Jack Henry has been spending $175 million on stock repurchases. Processor definition in computer At a $90 stock price, the share base would shrink 2.5% a year.

All in all, 7% to 10% top-line and 10% to 15% EPS growth is very achievable. Desktop computer processor speed For 2017, management guided 5% to 6% growth, or 3.04 to 3.06 EPS, which includes 5% negative impacts or one-offs on comparable basis. Latest processor speed of computer Street estimated EPS at $3.11. What does the computer processor do The company beat consensus by a large margin for at least the last four quarters. What is my computer processor Therefore it is likely that the management tends to give conservative guidance. What is a good computer processor As a result, we feel comfortable with our growth estimates.

Jack Henry has leading positions in the small banks and credit unions space. Computer processor test Its major competitors are Fidelity National Information Services ( NYSE:FIS) and Fiserv ( NASDAQ:FISV), whose clients tend to be larger than Jack Henry’s. What is the processor on a computer Both have higher leverages and inferior returns.

There are not many businesses that have wide moats. Computer processor speeds Jack Henry is one of the few. What is a computer processor speed Its services and products are crucial to the clients’ core operations. Best computer processor speed Switching costs are high. Processor definition computer Revenues are recurring. Processor speed of computer These ensure continued high margins and ROIC.

The management has a proven track record at growing the company both organically and through well-timed acquisitions. The processor of a computer When there are no acquisition opportunities, the excess cash is used on share buybacks and dividends as demonstrated in the chart below.

The new CEO may not be able to man the ship as well as the previous CEO. Processor of a computer But this risk is mitigated by the fact that the strong ex-CEO is elevated to executive chairman and the new CEO is a long-term veteran with the company.

Management guided $3.04 to $3.05 EPS per share for fiscal year 2017 (ending in June). Latest high speed computer processor Consensus is at $3.11. Computer processor speed 2013 Forward P/E is 29x for a 10% to 15% organic EPS growth business. Best computer processor list Like the market, the valuation is at the highest in years. Processor types in computer Historically Jack Henry has been priced at a premium to the market in normal business cycles. Computer processor ratings Adjusted for the gain on sale of a business in 2016, the current trailing P/E is about the same premium relative to the market as before.

The stock deserves a premium due to consistent earnings profile, strong returns on capital, recurring revenue and proven strong management. What is computer processor But the price looks fair relative to the market; the new CEO still needs to prove that he can man the ship just as well. What is a computer processor A journey to 20x or $60 would provide a better entry point. The fastest computer processor Or alternatively, you could hedge with shorting ETF of, say, iShares Russell 2000 ( IWM). Computer core processor However this would give up on dividends as Jack Henry has a 1.2% dividend yield and Russell 2000 has 1.4%.

Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Where is the processor in a computer Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. Laptop computer processor speed comparison The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Best computer processor for desktop The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. About computer processor In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Computer processor speed comparison Past performance is a poor indicator of future performance. List of latest computer processor The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Definition of computer processor The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Best computer processor for home use The gurus listed in this website are not affiliated with GuruFocus.com, LLC.