A Business at a Glance
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JACK HENRY & ASSOCIATES INC
JKHY
$11.0B
Mkt Cap
$150.58
+1.59%
JACK HENRY & ASSOCIATES INC (JKHY) has a current P/E ratio of 21.6, compared to its historical median P/E of 31.4. The stock is currently considered Cheap based on its historical valuation range.
JACK HENRY & ASSOCIATES INC (JKHY) has a 5-year average return on invested capital (ROIC) of 22.7%. This indicates strong capital allocation and a potential competitive advantage.
JACK HENRY & ASSOCIATES INC (JKHY) has a market capitalization of $15.7B. It is classified as a large-cap stock.
Yes, JACK HENRY & ASSOCIATES INC (JKHY) pays a dividend with a trailing twelve-month yield of 1.08%. The company also returns capital through share buybacks, with a buyback yield of 1.81%.
Based on historical P/E analysis, JACK HENRY & ASSOCIATES INC (JKHY) appears cheap. The current P/E of 21.6 is 31% below its historical median of 31.4. The estimated fair value CAGR (P/E method) is 7.5%.
JACK HENRY & ASSOCIATES INC (JKHY) operates in the Services-Computer Integrated Systems Design industry, within the Technology sector.
Jack Henry & Associates is a financial technology company serving approximately 7,400 financial institutions—primarily community and regional banks and credit unions—with core data processing systems, complementary solutions, and payment services. The company operates through three segments: core banking solutions (serving over 950 banks), core credit union solutions (approximately 715 credit unions), and complementary/payment products and services (over 5,710 non-core clients). Revenue is predominantly recurring, derived from private and public cloud services typically on six-year contracts, electronic payment solutions on six-year terms, and on-premise clients on one-year contracts, supplemented by less predictable software license fees and hardware sales. Jack Henry's business model emphasizes long-term client relationships through cross-selling complementary products, high retention rates driven by customer satisfaction monitoring, and a disciplined acquisition strategy focused on cloud-native, API-first solutions that accelerate product modernization. The company's competitive moat rests on its extensive integrated product suite, deep relationships with community and regional financial institutions, industry-leading service delivery, and ongoing investment in public cloud-native technology modernization through the Jack Henry Platform, which enables clients to innovate faster and differentiate in their markets.
【Sustained growth momentum with margin expansion】 Management expects continued strong demand for technology solutions from community and regional banks and credit unions, supported by elevated technology spending budgets among financial institutions and ongoing industry consolidation creating sales opportunities. The company is executing its long-term technology modernization strategy through the Jack Henry Platform and newer products such as Tap2Local, Rapid Transfers, and stablecoin processing capabilities, which are expected to drive incremental revenue growth over the coming years. Margin expansion is anticipated to continue through operational leverage, disciplined cost management, and leveraging existing workforce capacity, though quarterly results will fluctuate based on timing of cloud migrations, infrastructure investments, and commission expenses. Management remains confident in the company's historical 7%-8% long-term growth algorithm and expects fiscal 2027 to align with historical guidance, supported by a healthy pipeline of core wins, strong cross-sell momentum, and expanding opportunities in small and medium-sized business services and faster payments.
| Metric | Target | Period |
|---|---|---|
| GAAP Revenue Growth | 6.1%-6.6% | FY2026 |
| Non-GAAP Revenue Growth | 6.6%-7.1% | FY2026 |
| Non-GAAP Margin Expansion | 75-95 basis points | FY2026 |
| GAAP EPS | $6.78 - $6.87 per share | FY2026 |
| Free Cash Flow Conversion | 95%-105% | FY2026 |
| Deconversion Revenue | $37 million | FY2026 |
GAAP Revenue Growth (FY2026): “Full-year GAAP revenue growth guidance increases to a range of 6.1%-6.6%.”
Non-GAAP Revenue Growth (FY2026): “Based on our strong year-to-date results, we have tightened the range of non-GAAP annual revenue growth guidance, resulting in a new outlook of 6.6%-7.1%.”
Non-GAAP Margin Expansion (FY2026): “we are increasing full-year guidance for non-GAAP margin expansion to a range of 75-95 basis points from the original 20-40 basis points on the August call.”
GAAP EPS (FY2026): “The above increased guidance metrics result in a stronger full-year outlook for GAAP EPS of $6.78 - $6.87 per share, a growth of 9%-10%.”
Free Cash Flow Conversion (FY2026): “Full-year free cash flow conversion outlook for 95%-105% for fiscal 2026, with a bias towards the upper end of the range.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.5B | 2.4B | 2.2B | 2.1B | 1.9B | 1.8B |
| Net Income | 519M | 456M | 382M | 367M | 363M | 311M |
| EPS | $4.97 | $6.24 | $5.23 | $5.02 | $4.94 | $4.12 |
| Free Cash Flow | 728M | 588M | 510M | 342M | 470M | 439M |
| ROIC | 22.9% | 22.7% | 19.6% | 22.4% | 25.9% | 23.1% |
| Gross Margin | - | 42.7% | 41.3% | 41.3% | 41.9% | 39.5% |
| Debt/Equity | 0.04 | 0.00 | 0.08 | 0.17 | 0.08 | 0.08 |
| Dividends/Share | $1.62 | $2.26 | $2.14 | $2.02 | $1.90 | $1.78 |
| Operating Income | 654M | 569M | 489M | 481M | 475M | 399M |
| Operating Margin | 26.0% | 23.9% | 22.1% | 23.1% | 24.4% | 22.7% |
| ROE | 24.3% | 22.9% | 22.1% | 24.5% | 26.9% | 21.7% |
| Shares Outstanding | 105M | 73M | 73M | 73M | 73M | 76M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.2B | 1.3B | 1.4B | 1.4B | 1.5B | 1.6B | 1.7B | 1.8B | 1.9B | 2.1B | 2.2B | 2.4B | 2.5B |
| Gross Margin | 42.1% | 42.7% | 42.9% | 42.8% | 44.5% | 40.6% | 40.6% | 39.5% | 41.9% | 41.3% | 41.3% | 42.7% | N/A |
| R&D | 67M | 71M | 81M | 85M | 90M | 96M | 110M | 109M | 121M | 143M | 148M | 163M | 169M |
| SG&A | 53M | 64M | 158M | 159M | 172M | 186M | 198M | 187M | 218M | 235M | 278M | 283M | 285M |
| EBIT | 288M | 318M | 362M | 342M | 358M | 347M | 381M | 399M | 475M | 481M | 489M | 569M | 654M |
| Op. Margin | 24.6% | 25.3% | 26.7% | 23.9% | 23.3% | 22.4% | 22.4% | 22.7% | 24.4% | 23.1% | 22.1% | 23.9% | 26.0% |
| Net Income | 187M | 211M | 249M | 230M | 365M | 272M | 297M | 311M | 363M | 367M | 382M | 456M | 519M |
| Net Margin | 15.9% | 16.8% | 18.4% | 16.0% | 23.8% | 17.5% | 17.5% | 17.7% | 18.7% | 17.6% | 17.2% | 19.2% | 20.6% |
| Non-Recurring | 0 | 6.9M | 17M | -4.8M | 954K | -161K | 4.0M | 2.0M | -400K | 4.5M | -3.8M | -2.0M | -2.0M |
| Returns on Capital | |||||||||||||
| ROIC | 20.7% | 22.9% | 26.7% | 23.5% | 30.7% | 20.7% | 22.2% | 23.1% | 25.9% | 22.4% | 19.6% | 22.7% | 22.9% |
| ROE | 18.8% | 21.6% | 25.0% | 21.9% | 30.1% | 19.8% | 19.9% | 21.7% | 26.9% | 24.5% | 22.1% | 22.9% | 24.3% |
| ROA | 11.1% | 12.0% | 13.6% | 12.3% | 18.5% | 12.9% | 12.9% | 13.1% | 15.1% | 14.0% | 13.4% | 15.3% | 17.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 342M | 374M | 366M | 357M | 412M | 431M | 511M | 462M | 505M | 382M | 568M | 642M | 786M |
| Free Cash Flow | 308M | 319M | 310M | 315M | 372M | 378M | 457M | 439M | 470M | 342M | 510M | 588M | 728M |
| Owner Earnings | 279M | 310M | 305M | 297M | 352M | 371M | 441M | 389M | 429M | 304M | 493M | 569M | 294M |
| CapEx | 33M | 54M | 56M | 42M | 40M | 54M | 54M | 23M | 35M | 39M | 58M | 53M | 59M |
| Maint. CapEx | 53M | 54M | 51M | 50M | 48M | 47M | 52M | 53M | 51M | 49M | 46M | 44M | 464M |
| Growth CapEx | 0 | 254K | 5.8M | 0 | 0 | 6.2M | 1.4M | 0 | 0 | 0 | 12M | 9.7M | 0 |
| D&A | 53M | 54M | 51M | 50M | 48M | 47M | 52M | 53M | 51M | 49M | 46M | 44M | 464M |
| CapEx/OCF | 9.7% | 14.6% | 15.4% | 11.7% | 9.7% | 12.4% | 10.5% | 5.0% | 6.9% | 10.3% | 10.2% | 8.3% | 7.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 71M | 76M | 84M | 92M | 105M | 119M | 127M | 134M | 139M | 147M | 156M | 165M | 170M |
| Dividend Yield | 1.8% | 1.7% | 1.5% | 1.4% | 1.3% | 1.2% | 1.2% | 1.2% | 1.1% | 1.2% | 1.3% | 1.3% | 1.1% |
| Share Buybacks | 176M | 123M | 176M | 130M | 49M | 55M | 72M | 432M | 194M | 25M | 28M | 35M | 284M |
| Buyback Yield | 4.0% | 2.6% | 2.9% | 1.7% | 0.5% | 0.6% | 0.6% | 3.7% | 1.5% | 0.2% | 0.2% | 0.3% | 1.8% |
| Stock-Based Comp | 10M | 10M | 11M | 11M | 12M | 13M | 17M | 21M | 25M | 29M | 29M | 28M | 29M |
| Debt Repayment | 47M | 51M | 153M | 30M | 175M | 35M | 55M | 100M | 317M | 650M | 600M | 500M | 500M |
| Balance Sheet | |||||||||||||
| Net Debt | -57M | -45M | -70M | -65M | -31M | -94M | -213M | 49M | 66M | 263M | 112M | -102M | 69M |
| Cash & Equiv. | 70M | 148M | 70M | 115M | 31M | 94M | 213M | 51M | 49M | 12M | 38M | 102M | 21M |
| Long-Term Debt | 7.8M | 51M | 0 | 50M | 0 | 0 | 208K | 100M | 115M | 275M | 60M | 0 | 90M |
| Debt/Equity | 0.01 | 0.10 | 0.00 | 0.05 | 0.00 | 0.00 | 0.00 | 0.08 | 0.08 | 0.17 | 0.08 | 0.00 | 0.04 |
| Interest Coverage | 260.9 | 199.4 | 252.9 | 343.1 | 186.2 | 375.0 | 553.2 | 348.5 | 199.1 | 31.9 | 29.9 | 54.5 | 54.5 |
| Equity | 967M | 992M | 996M | 1.1B | 1.3B | 1.4B | 1.5B | 1.3B | 1.4B | 1.6B | 1.8B | 2.1B | 2.1B |
| Total Assets | 1.7B | 1.8B | 1.8B | 1.9B | 2.0B | 2.2B | 2.4B | 2.3B | 2.5B | 2.8B | 2.9B | 3.0B | 3.1B |
| Total Liabilities | 713M | 845M | 819M | 877M | 710M | 756M | 879M | 1.0B | 1.1B | 1.2B | 1.1B | 913M | 916M |
| Intangibles | 137M | 122M | 36M | 36M | 38M | 32M | 30M | 26M | 25M | 20M | 22M | 20M | 19M |
| Retained Earnings | 1.1B | 1.3B | 1.4B | 1.6B | 1.9B | 2.1B | 2.2B | 2.4B | 2.6B | 2.9B | 3.1B | 3.4B | 3.6B |
| Working Capital | -56M | 50M | -12M | 49M | 23M | 99M | 174M | 23M | 70M | 104M | -1.8M | 146M | 254M |
| Current Assets | 391M | 493M | 432M | 520M | 471M | 569M | 669M | 544M | 614M | 628M | 632M | 681M | 595M |
| Current Liabilities | 447M | 444M | 444M | 471M | 448M | 470M | 495M | 521M | 544M | 524M | 634M | 536M | 341M |
| Per Share Data | |||||||||||||
| EPS | 2.19 | 2.59 | 3.12 | 2.93 | 4.70 | 3.52 | 3.86 | 4.12 | 4.94 | 5.02 | 5.23 | 6.24 | 4.97 |
| Owner EPS | 3.27 | 3.80 | 3.83 | 3.78 | 4.54 | 4.81 | 5.74 | 5.14 | 5.84 | 4.17 | 6.75 | 7.80 | 2.81 |
| Book Value | 11.35 | 12.16 | 12.49 | 14.04 | 17.03 | 18.50 | 20.16 | 17.45 | 18.81 | 22.02 | 25.24 | 29.17 | 20.42 |
| Cash Flow/Share | 4.01 | 4.58 | 4.59 | 4.56 | 5.31 | 5.58 | 6.64 | 6.11 | 6.87 | 5.22 | 7.78 | 8.78 | 9.40 |
| Dividends/Share | 0.84 | 0.94 | 1.06 | 1.18 | 1.36 | 1.54 | 1.66 | 1.78 | 1.90 | 2.02 | 2.14 | 2.26 | 1.62 |
| Shares Out. | 85.3M | 81.6M | 79.8M | 78.3M | 77.7M | 77.2M | 76.9M | 75.6M | 73.5M | 73.0M | 73.0M | 73.0M | 104.6M |
| Valuation | |||||||||||||
| P/E Ratio | 23.6 | 22.5 | 24.2 | 30.3 | 25.2 | 35.2 | 43.2 | 37.9 | 34.9 | 31.7 | 31.1 | 28.4 | 30.3 |
| P/FCF | 14.3 | 14.9 | 19.4 | 23.7 | 24.7 | 25.4 | 28.1 | 26.9 | 27.0 | 33.9 | 23.3 | 22.0 | 21.6 |
| EV/EBIT | 14.8 | 14.2 | 16.3 | 19.8 | N/A | 27.0 | 32.6 | 29.8 | 26.8 | 24.7 | 24.7 | 22.6 | 24.2 |
| Price/Book | 4.5 | 4.8 | 6.0 | 7.2 | 7.0 | 6.7 | 8.3 | 9.0 | 9.2 | 7.2 | 6.5 | 6.1 | 7.4 |
| Price/Sales | 3.4 | 3.5 | 4.0 | 4.5 | 5.5 | 6.4 | 6.5 | 6.5 | 6.2 | 5.9 | 5.2 | 5.3 | 6.3 |
| FCF Yield | 7.0% | 6.7% | 5.2% | 4.2% | 4.0% | 3.9% | 3.6% | 3.7% | 3.7% | 2.9% | 4.3% | 4.5% | 4.6% |
| Market Cap | 4.4B | 4.7B | 6.0B | 7.5B | 9.2B | 9.6B | 12.8B | 11.8B | 12.7B | 11.6B | 11.9B | 12.9B | 15.7B |
| Avg. Price | 47.29 | 54.48 | 68.42 | 81.81 | 104.62 | 128.59 | 143.25 | 151.67 | 165.11 | 169.23 | 158.36 | 172.51 | 150.58 |
| Year-End Price | 51.59 | 58.18 | 75.44 | 95.22 | 118.44 | 123.91 | 166.89 | 156.27 | 172.51 | 158.94 | 162.78 | 177.09 | 150.58 |
JACK HENRY & ASSOCIATES INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
JACK HENRY & ASSOCIATES INC trades at 21.6x trailing earnings, compared to its 15-year median P/E of 31.4x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 16.6x vs a median of 25.0x. The company's 5-year average ROIC is 22.7% with a gross margin of 41.4%. Total shareholder yield (dividends + buybacks) is 2.9%. At current prices, the estimated annualized return to fair value is +3.9%.
JACK HENRY & ASSOCIATES INC (JKHY) reported annual revenue of $2.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
JACK HENRY & ASSOCIATES INC (JKHY) has a net profit margin of 19.2%. This is a healthy margin.
JACK HENRY & ASSOCIATES INC (JKHY) generated $588 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
JACK HENRY & ASSOCIATES INC (JKHY) has a debt-to-equity ratio of 0.00. This indicates a conservatively financed balance sheet.
JACK HENRY & ASSOCIATES INC (JKHY) reported earnings per share (EPS) of $6.24 in its most recent fiscal year.
JACK HENRY & ASSOCIATES INC (JKHY) has a return on equity (ROE) of 22.9%. This indicates the company generates strong returns for shareholders.
JACK HENRY & ASSOCIATES INC (JKHY) has a 5-year average gross margin of 41.4%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for JACK HENRY & ASSOCIATES INC (JKHY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
JACK HENRY & ASSOCIATES INC (JKHY) has a book value per share of $29.17, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong demand for technology solutions from community and regional banks and credit unions, supported by elevated technology spending budgets among financial institutions and ongoing industry consolidation creating sales opportunities. The company is executing its long-term technology modernization strategy through the Jack Henry Platform and newer products such as Tap2Local, Rapid Transfers, and stablecoin processing capabilities, which are expected to drive incremental revenue growth over the coming years. Margin expansion is anticipated to continue through operational leverage, disciplined cost management, and leveraging existing workforce capacity, though quarterly results will fluctuate based on timing of cloud migrations, infrastructure investments, and commission expenses. Management remains confident in the company's historical 7%-8% long-term growth algorithm and expects fiscal 2027 to align with historical guidance, supported by a healthy pipeline of core wins, strong cross-sell momentum, and expanding opportunities in small and medium-sized business services and faster payments.
Based on recent SEC filings and earnings calls, JACK HENRY & ASSOCIATES INC (JKHY) has provided the following forward guidance: GAAP Revenue Growth: 6.1%-6.6% (FY2026); Non-GAAP Revenue Growth: 6.6%-7.1% (FY2026); Non-GAAP Margin Expansion: 75-95 basis points (FY2026); GAAP EPS: $6.78 - $6.87 per share (FY2026); Free Cash Flow Conversion: 95%-105% (FY2026), plus 1 additional metric.
Deconversion Revenue (FY2026): “Fiscal 2026 deconversion revenue guidance has been increased to $37 million.”