Jack Henry & Associates (JKHY) AI Stock Analysis

• Market Cap: $11.07B
• Dividend Yield: 1.51%
• Average Volume (3M): 900.44K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.24
• Revenue Growth: 7.21%
• EPS Growth: 19.35%
• Country: US
• Employees: 7,170
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.75
• Shares Outstanding: 72,871,380
• 10 Day Avg. Volume: 1,044,562
• 30 Day Avg. Volume: 900,439
• PEG Ratio: 1.51
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 5.62
• P/FCF Ratio: 22.38
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 5.56
• Enterprise Value/Gross Profit: 13.18
• Enterprise Value/Ebitda: 16.35
• 1Y Price Target: $187.50
• Price Target Upside: 23.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 68 Neutral
• Price Target: $192.00 ▲(26.34% Upside)

Jack Henry & Associates' overall score is primarily supported by strong financial performance and strategic growth in core areas such as cloud and processing revenue. However, the stock faces challenges from moderate valuation metrics and mixed technical indicators. Despite some macroeconomic concerns, the company's strategic positioning and core wins remain strong positives.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for Jack Henry's solutions, supporting sustained growth and market leadership.

Strategic Partnerships

The expanded partnership with MeridianLink enhances product offerings and market reach, strengthening Jack Henry's competitive position.

Core Wins

Winning new core clients, including large financial institutions, boosts market share and reinforces Jack Henry's industry presence.

Negative Factors

Lowered Revenue Guidance

Reduced revenue guidance due to macroeconomic concerns may signal potential headwinds, impacting future financial performance.

Leadership Transition

Leadership changes can create uncertainty, potentially affecting strategic direction and execution in the near term.

Softening Nonstrategic Revenue

Decreased nonstrategic revenue could pressure overall growth, highlighting reliance on core offerings for future expansion.

Jack Henry & Associates Business Overview & Revenue Model

Company Description

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. It operates through four segments: Core, Payments, Complementary, and Corporate and Other. The company offers information and transaction processing solutions for banks ranging from community to multi-billion-dollar asset institutions under the Jack Henry Banking brand; core data processing solutions for various credit unions under the Symitar brand; and specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial institutions and corporate entities under the ProfitStars brand. It also provides a suite of integrated applications required to process deposit, loan, and general ledger transactions, as well as to maintain centralized customer/member information; and complementary products and services that enable core bank and credit union clients to respond to evolving customer/member demands. The company's Jack Henry Banking business brand offers SilverLake, a robust primarily designed for commercial-focused banks; CIF 20/20, a parameter-driven, easy-to-use system for banks; and Core Director, a cost-efficient system with point-and-click operation. Its Symitar business brand provides Episys, a robust designed for credit unions. In addition, the company offers digital products and services and electronic payment solutions; purchases and resells hardware systems, including servers, workstations, scanners, and other devices; and provides implementation, training, and support services. Jack Henry & Associates, Inc. was founded in 1976 and is headquartered in Monett, Missouri.

How the Company Makes Money

Jack Henry & Associates generates revenue through a multi-faceted business model centered around its comprehensive suite of technology solutions and services for financial institutions. The company earns money primarily through the sale and ongoing maintenance of its core processing platforms, which are essential for the daily operations of banks and credit unions. Additionally, Jack Henry offers a range of complementary services, such as payment processing, risk management, and digital banking solutions, which provide recurring revenue streams through subscription fees and transaction-based charges. The company also engages in strategic partnerships and acquisitions to expand its product offerings and tap into new markets, further driving its revenue growth.

Jack Henry & Associates Financial Statement Overview

Summary

Jack Henry & Associates exhibits robust financial performance with consistent revenue and profitability growth, supported by strong cash flow management and a stable balance sheet. While the company is well-positioned, there is potential for improvement in return on equity and free cash flow growth.

Income Statement

Jack Henry & Associates demonstrated strong financial performance with a consistent upward trend in revenue over the years. The gross profit and net profit margins are healthy, supported by a robust EBIT and EBITDA margin. The company shows solid revenue growth, indicating effective market strategies and operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position with an improving debt-to-equity ratio, suggesting prudent financial management. The equity ratio is strong, highlighting a solid asset base. However, the return on equity shows potential for improvement to maximize shareholder value.

Cash Flow

The company maintains a stable cash flow with strong operating cash inflow and positive free cash flow, indicating effective cash management. The operating and free cash flow to net income ratios demonstrate efficient cash conversion. However, there is room for enhancing free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.35B	2.34B	2.22B	2.08B	1.94B	1.76B
Gross Profit	994.16M	980.94M	916.07M	858.64M	814.27M	694.83M
EBITDA	801.23M	801.23M	714.31M	680.37M	652.27M	696.76M
Net Income	455.75M	455.75M	381.82M	366.65M	362.92M	311.47M
Balance Sheet
Total Assets	3.04B	3.04B	2.92B	2.77B	2.46B	2.34B
Cash, Cash Equivalents and Short-Term Investments	101.95M	101.95M	38.28M	12.24M	48.79M	50.99M
Total Debt	0.00	0.00	209.60M	325.27M	166.52M	161.02M
Total Liabilities	913.14M	913.14M	1.08B	1.17B	1.07B	1.02B
Stockholders Equity	2.13B	2.13B	1.84B	1.61B	1.38B	1.32B
Cash Flow
Free Cash Flow	454.01M	588.15M	335.62M	174.57M	313.24M	304.29M
Operating Cash Flow	641.50M	641.50M	568.04M	381.56M	504.63M	462.13M
Investing Cash Flow	-232.16M	-232.16M	-240.16M	-409.67M	-196.34M	-162.25M
Financing Cash Flow	-345.67M	-345.67M	-301.83M	-8.43M	-310.49M	-462.23M

Jack Henry & Associates Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 151.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JKHY, the sentiment is Negative. The current price of 151.97 is below the 20-day moving average (MA) of 160.45, below the 50-day MA of 165.75, and below the 200-day MA of 172.69, indicating a bearish trend. The MACD of -2.57 indicates Positive momentum. The RSI at 29.96 is Positive, neither overbought nor oversold. The STOCH value of 13.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JKHY.

Jack Henry & Associates Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	77 Outperform	72.54B	21.95	28.18%	2.99%	4.52%	-0.22%
BR	74 Outperform	28.28B	34.03	31.62%	1.50%	5.88%	20.69%
CTSH	74 Outperform	32.69B	13.59	15.93%	1.84%	6.34%	12.16%
FI	70 Outperform	71.65B	22.03	13.40%	―	6.73%	3.93%
JKHY	68 Neutral	$11.07B	24.36	22.94%	1.51%	7.21%	19.35%
FIS	58 Neutral	34.01B	243.77	0.79%	2.40%	3.64%	102.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Jack Henry & Associates Corporate Events

Jack Henry & Associates Announces Leadership Transition

On June 30, 2025, David B. Foss stepped down from his role as Executive Chair of Jack Henry & Associates, marking a significant leadership transition for the company. Mr. Foss will continue to serve as a director and Chair of the Board of Directors, receiving compensation similar to other non-employee directors, with an additional annual retainer for his role as Board Chair.

The most recent analyst rating on (JKHY) stock is a Hold with a $180.00 price target. To see the full list of analyst forecasts on Jack Henry & Associates stock, see the JKHY Stock Forecast page.

Jack Henry Lowers Threshold for Special Meetings

On May 9, 2025, Jack Henry & Associates, Inc. amended its bylaws to lower the threshold for stockholders to call a special meeting from two-thirds to twenty-five percent of voting stock. This change potentially enhances shareholder engagement and could influence corporate governance dynamics by making it easier for stockholders to initiate special meetings.

The most recent analyst rating on (JKHY) stock is a Hold with a $180.00 price target. To see the full list of analyst forecasts on Jack Henry & Associates stock, see the JKHY Stock Forecast page.