Jack Henry & Associates (JKHY) AI Stock Analysis

• Market Cap: $13.77B
• Dividend Yield: 1.25%
• Average Volume (3M): 645.46K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.09
• Revenue Growth: 7.75%
• EPS Growth: 20.42%
• Country: US
• Employees: 7,170
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.97
• Shares Outstanding: 72,377,130
• 10 Day Avg. Volume: 567,330
• 30 Day Avg. Volume: 645,457
• PEG Ratio: 1.51
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 5.54
• P/FCF Ratio: 22.38
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 10.34
• Enterprise Value/Ebitda: 13.06
• 1Y Price Target: $197.40
• Price Target Upside: 3.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 6.5
• Revenue Forecast (FY): $2.50B

• Rating: 77 Outperform
• Price Target: $216.00 ▲(13.49% Upside)

Jack Henry & Associates' strong financial performance and positive earnings call insights are the primary drivers of its score. While technical indicators suggest potential short-term challenges, the company's strategic initiatives and robust growth in key segments support a favorable outlook.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for Jack Henry's solutions, supporting long-term growth and market position.

Cloud Migration

High cloud adoption enhances client retention and operational efficiency, strengthening Jack Henry's competitive advantage.

Acquisition of Victor Technologies

Expanding into the PaaS market diversifies revenue streams and positions Jack Henry for growth in a rapidly expanding sector.

Negative Factors

Pricing Compression Challenges

Pricing compression can pressure margins and impact profitability, posing a challenge to sustaining long-term financial performance.

Impact of M&A Activity

M&A activity among clients may lead to revenue volatility, affecting Jack Henry's recurring revenue stability.

Lower New Core Wins

A decrease in new core wins could signal competitive pressures, potentially impacting future growth and market share.

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 multiple key streams. The majority of its revenue comes from the sale of software licenses and recurring maintenance fees associated with its core banking systems and complementary solutions. Additionally, the company earns significant income from its payment processing services, which include electronic funds transfer, ACH processing, and card processing services. Recurring revenue from these services is bolstered by long-term contracts with financial institutions. Partnerships with various fintech companies and integration with third-party applications also contribute to its revenue by expanding its service offerings and market reach. Overall, Jack Henry's business model leverages a combination of software sales, service fees, and strategic collaborations to create a steady flow of income.

Jack Henry & Associates Financial Statement Overview

Summary

Jack Henry & Associates shows strong profitability with consistent revenue and margin growth. The low debt-to-equity ratio indicates minimal financial risk, and cash flow metrics are generally positive, although attention to cash flow timing could enhance stability.

Income Statement

Jack Henry & Associates demonstrates strong profitability with a consistent increase in revenue and margins. The TTM data shows a gross profit margin of 43.54% and a net profit margin of 19.86%, indicating efficient cost management. Revenue growth is steady, with a TTM growth rate of 1.84%. EBIT and EBITDA margins are robust at 25.96% and 34.48%, respectively, reflecting effective operational management.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.009, indicating minimal leverage and financial risk. Return on equity is strong at 22.60%, showcasing effective use of shareholder funds. However, the equity ratio is not available, which limits a complete assessment of asset financing.

Cash Flow

Cash flow analysis reveals positive trends with a free cash flow growth rate of 11.58% in the TTM period. The operating cash flow to net income ratio is negative, which could indicate timing issues in cash collections or payments. The free cash flow to net income ratio is healthy at 78.51%, suggesting good cash conversion from profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.42B	2.38B	2.22B	2.08B	1.94B	1.76B
Gross Profit	1.05B	1.01B	916.07M	858.64M	814.27M	694.83M
EBITDA	834.20M	801.23M	714.31M	680.37M	652.27M	696.76M
Net Income	480.54M	455.75M	381.82M	366.65M	362.92M	311.47M
Balance Sheet
Total Assets	3.05B	3.04B	3.04B	2.92B	2.77B	2.46B
Cash, Cash Equivalents and Short-Term Investments	36.24M	101.95M	101.95M	38.28M	12.24M	48.79M
Total Debt	20.00M	0.00	0.00	150.00M	275.00M	115.13M
Total Liabilities	874.24M	913.14M	913.14M	1.08B	1.17B	1.07B
Stockholders Equity	2.17B	2.13B	2.13B	1.84B	1.61B	1.38B
Cash Flow
Free Cash Flow	595.76M	588.15M	509.92M	342.38M	469.97M	313.24M
Operating Cash Flow	645.20M	641.50M	568.04M	381.56M	504.63M	504.63M
Investing Cash Flow	-271.93M	-232.16M	-240.16M	-409.67M	-196.34M	-196.34M
Financing Cash Flow	-380.24M	-345.67M	-301.83M	-8.43M	-310.49M	-310.49M

Jack Henry & Associates Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JKHY, the sentiment is Positive. The current price of 190.32 is above the 20-day moving average (MA) of 186.27, above the 50-day MA of 178.34, and above the 200-day MA of 169.95, indicating a bullish trend. The MACD of 3.38 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 86.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JKHY.

Jack Henry & Associates Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	79 Outperform	$6.79B	28.97	25.96%	―	14.43%	29.86%
G	78 Outperform	$7.92B	14.80	22.32%	1.41%	7.40%	-14.45%
JKHY	77 Outperform	$13.77B	28.91	23.45%	1.25%	7.75%	20.42%
CACI	74 Outperform	$14.03B	28.06	13.14%	―	12.61%	11.85%
PAY	74 Outperform	$3.65B	63.16	11.81%	―	44.34%	45.96%
EPAM	73 Outperform	$11.75B	32.45	10.21%	―	14.26%	-15.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Jack Henry & Associates Corporate Events

Jack Henry & Associates Approves 2025 Equity Incentive Plan

On November 12, 2025, Jack Henry & Associates, Inc. held its Annual Meeting of Stockholders, where the 2025 Equity Incentive Plan was approved, replacing the previous plan that expired in 2025. The meeting also saw the election of directors, approval of executive compensation, ratification of PricewaterhouseCoopers LLP as the independent auditor, and the rejection of a stockholder proposal to improve shareholder ability to call special meetings.

The most recent analyst rating on (JKHY) stock is a Hold with a $175.00 price target. To see the full list of analyst forecasts on Jack Henry & Associates stock, see the JKHY Stock Forecast page.