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JKHY
Jack Henry & Associates, Inc.
Summary
Business
Earnings Call
Valuation
Profitability
Financial Health
Intel
Yearly Return 10Y annualized return is very good at 10.9% per year
Earnings Expectations JKHY has met or exceeded earnings expectations in the majority of recent quarters (8/10)
Positive Moderate Growth Expectations
Positive Strong Sales Relative to Price
Negative High Valuation Ratios
Negative Moderate Operating Profit Margin

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Overall, Jack Henry & Associates, Inc. demonstrates strong business quality with solid financial performance, high client retention, and market leadership. Future prospects appear favorable, bolstered by strong sales momentum and investment in technology modernization. However, challenges such as hardware revenue decline and potential pricing pressures must be monitored.

Analysis Date: February 5, 2025
Last Updated: May 29, 2025

+181%
+10.9% per year

Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.

Country US
Exchange NASDAQ
Industry Information Technology Services
Sector Technology
Market Cap $12.38B
CEO Mr. Gregory R. Adelson

Jack Henry & Associates, Inc. is a company that helps banks and credit unions with technology and payment processing services. They provide software and tools that allow these financial institutions to manage transactions, handle customer information, and improve their services. Their products include systems for processing loans and deposits, as well as solutions for online and mobile banking. Founded in 1976 and based in Missouri, Jack Henry aims to make banking easier and more efficient for both financial organizations and their customers.

Streams of revenue

Payments: 37%
Core Segment: 34%
Complementary: 30%

Geographic Distribution

United States: 80%
International: 20%

Estimations for reference only

Core Products

📱
Banno Digital banking
🏦
Symitar Credit union software
📈
ProfitStars Financial solutions
💻
SilverLake System Banking platform
💳
JHA Payment Solutions Payment processing

Business Type

B2B Business to Business

Competitive Advantages

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Key Business Risks

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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

Graham Value Metrics

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ROE: 22.06944813653722

ROA: None

Gross Profit Margin: 42.058660358155706

Net Profit Margin: 18.502096490732722

Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

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Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.

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About Financial Health Metrics

Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.

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Meeting Expectations

8 /10

Higher values indicate better execution and credibility

Recent Results

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EPS

1.29
Estimated
1.52
Actual
+17.83%
Difference

Revenue

$602204430
Estimated
$585087000
Actual
-2.84%
Difference
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Insider trading data shows purchase and sale activities by company executives and board members.

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JKHY Stock Analysis: Jack Henry & Associates, Inc. Investment Guide

JKHY (Jack Henry & Associates, Inc.) is a Technology company listed on NASDAQ Global Select. The stock has generated 10.9% annual returns with an overall investment score of None/100.

Overall, Jack Henry & Associates, Inc. demonstrates strong business quality with solid financial performance, high client retention, and market leadership. Future prospects appear favorable, bolstered by strong sales momentum and investment in technology modernization. However, challenges such as hardware revenue decline and potential pricing pressures must be monitored.

JKHY Key Financial Metrics

JKHY financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 2.7458832099212955/100 and profitability score of 5.0/100 with financial health rated 7.45/100.

About Jack Henry & Associates, Inc.

Jack Henry & Associates, Inc. is a company that helps banks and credit unions with technology and payment processing services. They provide software and tools that allow these financial institutions to manage transactions, handle customer information, and improve their services. Their products include systems for processing loans and deposits, as well as solutions for online and mobile banking. Founded in 1976 and based in Missouri, Jack Henry aims to make banking easier and more efficient for both financial organizations and their customers.

JKHY Investment Recommendation

Based on our comprehensive analysis of JKHY, investors should consider the company's strong performance track record, earnings consistency (8/10 quarters beat expectations), and current valuation metrics when making investment decisions.

Technology Sector Analysis

JKHY operates in the Information Technology Services industry within the Technology sector. This analysis compares Jack Henry & Associates, Inc. performance against industry and sector benchmarks to provide context for investment decisions.

Frequently Asked Questions about JKHY Stock

Is JKHY a good investment?

JKHY (Jack Henry & Associates, Inc.) has generated 10.9% annual returns with an overall score of None/100. Overall, Jack Henry & Associates, Inc. demonstrates strong business quality with solid financial performance, high client retention, and market leadership. Future prospects appear favorable, bolstered by strong sales momentum and … Investors should consider their risk tolerance and investment goals when evaluating JKHY.

What is JKHY P/E ratio and valuation?

JKHY valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Information Technology Services industry and Technology sector benchmarks. The company currently has a valuation score of 2.7458832099212955/100.

Should I buy JKHY stock now?

The decision to buy JKHY stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 5.0/100, financial health score of 7.45/100, and detailed performance metrics to help inform your investment decision.

What are JKHY financial health indicators?

JKHY financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 7.45/100 based on comprehensive analysis of balance sheet strength and operational efficiency.

How does JKHY compare to competitors?

JKHY performance is benchmarked against Information Technology Services industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Jack Henry & Associates, Inc.'s market position.

What are JKHY historical returns?

JKHY has generated 10.9% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.

JKHY Key Investment Metrics Summary

  • Annual Return: 10.9%
  • Valuation Score: 2.7458832099212955/100
  • Profitability Score: 5.0/100
  • Financial Health Score: 7.45/100
  • Growth Score: -6.81627974448552/100
  • Earnings Beat Rate: 8/10 quarters
  • Sector: Technology
  • Industry: Information Technology Services
  • Exchange: NASDAQ Global Select
  • Market Cap: 12376086059

JKHY Investment Thesis

Jack Henry & Associates, Inc. (JKHY) represents a strong investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.

Investment Strengths

  • Moderate Growth Expectations
  • Strong Sales Relative to Price
  • Strong Profit Margins
  • Good Return on Equity
  • Low Debt Levels
  • Strong Interest Coverage
  • Strong Financial Performance
  • High Client Retention
  • Market Leadership and Recognition
  • Strong Sales Momentum
  • Investment in Technology Modernization
  • Positive Industry Trends

Investment Risks

  • High Valuation Ratios
  • Moderate Operating Profit Margin
  • Low Cash Ratio
  • Hardware Revenue Decline
  • Potential Pricing Pressures
  • Impact of Industry Consolidation
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