Quality Investor

Jack Henry & Associates, Inc.

Rank #172Hypergrowth

JKHY · Nasdaq · Technology

Jack Henry & Associates, Inc. (JKHY) — Rank #172 by gross profitability (GP/assets 0.35) · ROE 24.5% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000779152 · all metrics point-in-time as of the filing date.

About

Jack Henry & Associates, Inc. operates as a financial technology company that connects people and financial institutions through technology solutions and payment processing services in the United States.

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It operates through four segments: Core, Payments, Complementary, and Corporate Services. The Core segment provides core information processing platforms to banks and credit unions, which consists of integrated applications required to process deposit, loan, general ledger transactions, and maintain centralized accountholder information. The Payments segment offers secure payment processing tools and services, including ATM, money movement and embedded payment capabilities, remote deposit capture processing, and risk management products and services, as well as debit and credit card processing services, and online and mobile bill pay solutions. The Complementary segment provides software, and hosted processing platforms and services comprising digital/mobile banking, treasury, online account opening, fraud/anti-money laundering, and lending/deposit solutions. The Corporate Services segment offers hardware and other products. It offers specialized financial performance, imaging and payment, information security and risk management, retail delivery, and online and mobile solutions to financial services organizations and corporate entities. The company also provides SilverLake system, a system primarily designed for commercial-focused banks; CIF 20/20, a parameter-driven system for banks; and Core Director, a system with point-and-click operation for banks; and Symitar, a system designed for credit unions. It provides digital products and services under the Banno Digital Platform, and electronic payment solutions; hardware systems; implementation, training, and support and services; and data and transaction processing, and software licensing and related services, as well as professional services.

The company was founded in 1976 and is headquartered in Monett, Missouri.

Industry
Information Technology Services
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
June 30

Price History

JKHY-1.7% · -0.3% CAGRSPY+78.9% · +12.3% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$11.63B

P/E (annual)

23.8

P/S (annual)

4.6

P/B

5.7

P/OCF (annual)

15.3

Shareholder Yield

9.4%

Employees

7,300

Industry

Information Technology Services

Exchange

Nasdaq

Signal Flags

2 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.35
Return on equity
24.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.53
Current ratio
1.17×
Net cash
-$69.43M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.3%

Growth

2/2 pass
Revenue growth
77.8%
Piotroski F-Score
N/A
Share dilution
-7.9%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

5.7%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -7.9% — per-share value needs a total required return of -2.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

1.5%

r = 10% (base)

5.7%

r = 12%

9.3%

Net debt / market cap: 0.6%

Base FCF: $694.9M3Y mean FCF: $332.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

32.7xExpensive
18.3xmed 24.4x32.7x

P / S

Price / revenue per share

8.0xExpensive
2.6xmed 3.9x8.0x

P / B

Price / book value per share

9.7xExpensive
2.8xmed 4.4x9.7x

P / GP

Price / gross profit per share

18.5xExpensive
6.2xmed 9.3x18.5x

P / FCF

Price / free cash flow per share

33.1xExpensive
12.0xmed 16.2x33.1x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.35

Primary signal (Novy-Marx).

4th of 8 SIC 7373 peers

Return on equity

24.5%

Gross margin

43.7%

4th of 7 SIC 7373 peers

Revenue growth (YoY)

77.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2015201620172018
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

11.1%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.53

4th of 8 SIC 7373 peers (best = lowest)

Current ratio

1.17×

7th of 8 SIC 7373 peers

Quick ratio

0.66×

Net cash

-$69.43M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$694.86M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.38

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.3%

Stock-based comp intensity.

Dividend safety

Composite score

4.0 / 5

Strong
Payout ratio
33.9%4/5 Strong
FCF coverage
4.08×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.53 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20132018
Capital Return