Jack Henry & Associates (JKHY) AI Stock Analysis

• Market Cap: $13.44B
• Dividend Yield: 1.23%
• Average Volume (3M): 661.82K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.34
• Revenue Growth: 6.04%
• EPS Growth: 13.36%
• Country: US
• Employees: 7,170
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): 1.52
• Shares Outstanding: 72,815,990
• 10 Day Avg. Volume: 628,748
• 30 Day Avg. Volume: 661,821
• PEG Ratio: 5.04
• Price to Book (P/B): 6.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.37
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.48
• Enterprise Value/Gross Profit: 13.72
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $187.50
• Price Target Upside: 1.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $201.00 ▲(8.89%Upside)

Jack Henry & Associates shows solid financial performance and strong operational metrics, particularly in cloud and processing revenues. However, the stock's valuation is high, and macroeconomic challenges have prompted a cautious outlook. Positive technical indicators suggest bullish momentum, but potential overvaluation and market caution are significant risks.

Positive Factors

Earnings

Jack Henry & Associates reported better-than-expected margins and earnings per share, which is a positive indicator for the company's financial health.

Market Position

Jack Henry continues to move up-market with both existing clients and competitive takeaways, with new client contracts and competitive takeaway deals.

Revenue Growth

The mix and growth of key revenue, which represents 78% of non-GAAP revenue, is growing by 10% year over year.

Negative Factors

Economic Uncertainty

Management cited customer purchase delays and potential declines in transaction volumes as reasons for the lowered revenue guidance, reflecting possible economic challenges.

Hardware Sales

The revenue miss was primarily attributable to lower-than-expected hardware sales, which fell $4 million year-over-year.

Revenue Guidance

Revenue guidance was lowered, confirming investor fears of a difficult setup for accelerating growth.

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 a robust financial profile with consistent growth in revenue and profitability, strong cash flow management, and a stable balance sheet. The company demonstrates a healthy gross and net profit margin, supported by a strong EBIT and EBITDA margin. However, there is room for enhancing 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.32B	2.22B	2.08B	1.94B	1.76B	1.70B
	Gross Profit
975.69M	916.07M	858.64M	814.27M	694.83M	688.60M
	EBIT
538.64M	489.39M	480.69M	297.03M	223.12M	380.63M
	EBITDA
772.65M	714.31M	680.37M	652.27M	398.72M	459.97M
	Net Income Common Stockholders
429.22M	381.82M	366.65M	362.92M	311.47M	296.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.71M	38.28M	12.24M	48.79M	50.99M	213.34M
	Total Assets
2.75B	2.92B	2.77B	2.46B	2.34B	2.43B
	Total Debt
255.00M	209.60M	275.00M	115.07M	100.19M	323.00K
	Net Debt
228.29M	171.32M	262.76M	66.28M	49.20M	-213.02M
	Total Liabilities
1.03B	1.08B	399.73M	1.07B	1.02B	878.79M
	Stockholders Equity
1.72B	1.84B	1.61B	1.38B	1.32B	1.55B
Cash Flow		Free Cash Flow
302.71M	335.62M	174.57M	313.24M	304.29M	333.02M
	Operating Cash Flow
546.19M	568.04M	381.56M	504.63M	462.13M	510.53M
	Investing Cash Flow
-251.98M	-240.16M	-409.67M	-196.34M	-162.25M	-197.91M
	Financing Cash Flow
-281.60M	-301.83M	-8.43M	-310.49M	-462.23M	-192.91M

Jack Henry & Associates Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 184.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 184.59 is above the 20-day moving average (MA) of 178.71, above the 50-day MA of 176.25, and above the 200-day MA of 174.82, indicating a bullish trend. The MACD of 2.58 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 63.35 is Neutral, 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
INFY	81 Outperform	$76.37B	24.24	29.00%	2.29%	3.85%	-0.38%
BR	78 Outperform	$28.19B	36.07	33.92%	1.45%	5.73%	13.40%
CTSH	76 Outperform	$39.75B	16.98	16.61%	1.53%	4.09%	14.05%
JKHY	74 Outperform	$13.44B	31.42	22.49%	1.23%	6.04%	13.36%
FIS	71 Outperform	$42.01B	50.02	5.25%	1.89%	-9.12%	―
FI	68 Neutral	$88.34B	28.18	11.88%	―	6.56%	6.03%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%

Jack Henry & Associates Corporate Events

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.