Quality Investor

Jack Henry & Associates, Inc.

Rank #165Capital ReturnWatchlistCompare with other stocks

JKHY · Nasdaq · Technology

Jack Henry & Associates, Inc. (JKHY) — Rank #165 by gross profitability (GP/assets 0.35) · ROE 24.5% · Piotroski F-Score 7 / 9.

As-of 2026-10-30 · 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

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

7,300

Industry

Information Technology Services

Exchange

Nasdaq

12/12

Flags passed

JKHY passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Operating leverage expanding · Deferred revenue growing · RPO outpacing revenue

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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
7.1%
Piotroski F-Score
7 / 9
Share dilution
-1.4%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.35

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)

7.1%

RPO growth (YoY)

9.5%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

7.0%

Revenue CAGR (5Y)

7.7%

Earnings CAGR (3Y)

11.1%

FCF CAGR (3Y)

26.6%

Cash Flow Health

Is the cash real?

No warning flags · FCF 38% above net income

Free cash flow

$694.86M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

38.2%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.3%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $69.43M, F-Score 7/9

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.

Piotroski F-Score

7 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Valuation History

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

P / E

Price / diluted EPS

24.3xCheap
24.3xmed 32.3x43.1x

P / S

Price / revenue per share

4.8xCheap
4.8xmed 5.6x7.6x

P / B

Price / book value per share

6.0xCheap
5.5xmed 7.2x10.6x

P / GP

Price / gross profit per share

11.0xCheap
11.0xmed 13.5x18.9x

P / FCF

Price / free cash flow per share

17.6xCheap
17.6xmed 28.0x33.7x

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

Capital allocation quality

Composite score

3.8 / 5

Good
Share count trend(net buybacks)
-1.4%3/5 Good
Buyback timing
vs own P/E history5/5 Strong
Dividend growth consistency
10 yr5/5 Strong
Net debt trajectory
-3.5%2/5 Fair

Lifecycle Phase History

20212026
Capital Return

Price History

JKHY-7.7% · -1.6% CAGRSPY+84.0% · +12.9% CAGR