# Jack Henry & Associates (JKHY.US)

Canonical: https://gigainvestors.com/s/JKHY

Analysis as of: 2026-10-16T07:29:31.013Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $156.47 per share; close as of 2026-10-15.

Estimated value: low $118.83 per share, central $168.60 per share, high $197.96 per share. Buy at or below the central value $168.60 per share. Valuation as of 2026-10-16T07:29:31.013Z; scenarios are not confidence intervals.

Expected annual return: 10.5% at the stated quote. About 10.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.26×

- FY2018: 0.26×

- FY2019: 0.22×

- FY2020: 0.22×

- FY2021: 0.23×

- FY2022: 0.24×

- FY2023: 0.23×

- FY2024: 0.22×

- FY2025: 0.24×

- FY2026: 0.24×

### moat: pass

- ROIC, median of available years: 37.7%

- ROIC, second-lowest year: 32.8%

- Typical minus recent gross margin: -1.1 pp

- Typical gross margin (annual median): 41.6%

- Recent gross margin (lower of latest and 3-year median): 42.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 27.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 35.6%

- FY2018: 45.4%

- FY2019: 40.7%

- FY2020: 45.5%

- FY2021: 44.7%

- FY2022: 38.1%

- FY2023: 16.8%

- FY2024: 32.8%

- FY2025: 34.7%

- FY2026: 37.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.21×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.5B

- Net income, five-year total: $2.1B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -6.9 pp

- Working capital / revenue, final three-year average: 10.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.37×

- FY2025: 1.33×

- FY2026: 1.29×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 40.7% vs 34.7%

- Per-share earnings: 3.14 to 6.24 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -1.0%

- Market cap gain: $1.8B

- Cumulative retained earnings: $2.1B

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -1.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 9.0%

- Per-share value change: $3.10

- Per-share value, starting three-year median: $3.14

- Per-share value, ending three-year median: $6.24

- Buybacks concentrated in cheaper years (correlation): 0.02

- Average buyback yield: 1.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $462M

- Cumulative net income, 10 years: $3.6B

- ROIC, first three-year median: 40.7%

- ROIC, last three-year median: 34.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: $3.14

- FY2018: $4.85

- FY2019: $3.52

- FY2020: $3.86

- FY2021: $4.12

- FY2022: $4.94

- FY2023: $5.02

- FY2024: $5.23

- FY2025: $6.24

- FY2026: $6.98

### accounting: pass

- Sloan accruals: -8.2%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.52×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.75×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.8%

- FY2018: -1.7%

- FY2019: -7.8%

- FY2020: -8.8%

- FY2021: -6.1%

- FY2022: -5.1%

- FY2023: -0.5%

- FY2024: -6.1%

- FY2025: -6.1%

- FY2026: -8.2%

## Holders

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 25% since Jul 2022 · sales +5.1%

Story as of 2026-10-16T09:58:59.534Z; price observation 2026-10-15.

Price needs cash profits to grow 5.9% a year for ten years

- 2026-08-21: Jack Henry (JKHY) Stock May Be 21% Undervalued On Raised FY27 Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/jack-henry-jkhy-stock-may-121059548.html))

### Sales · FY2025–2026

sales +5.1%; source https://www.sec.gov/Archives/edgar/data/779152/000077915226000067/jkhy-20260630.htm; observed 2026-08-28.

- FY2017: $1.4B 

- FY2018: $1.5B 

- FY2019: $1.6B 

- FY2020: $1.7B 

- FY2021: $1.8B 

- FY2022: $1.9B 

- FY2023: $2.1B 

- FY2024: $2.2B 

- FY2025: $2.4B 

- FY2026: $2.5B 

### Gross margin · FY2026

gross margin 43.1%; source https://www.sec.gov/Archives/edgar/data/779152/000077915226000067/jkhy-20260630.htm; observed 2026-08-28.

- FY2017: 42.8% 

- FY2018: 43.1% 

- FY2019: 40.6% 

- FY2020: 40.6% 

- FY2021: 39.5% 

- FY2022: 41.9% 

- FY2023: 41.3% 

- FY2024: 41.3% 

- FY2025: 42.7% 

- FY2026: 43.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are USD 2.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/779152/000077915226000067/jkhy-20260630.htm (filed 2026-08-28); FY2026: revenue 2496316000; grossProfit 1076310000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); JKHY.US: 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. 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.

### Why customers stay

Margins ranged from 41.3% to 43.1% during 2024–26; it earns 37.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2024: grossProfit / revenue = 41.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2025: grossProfit / revenue = 42.7%.

- Source: https://www.sec.gov/Archives/edgar/data/779152/000077915226000067/jkhy-20260630.htm (filed 2026-08-28); FY2026: grossProfit / revenue = 43.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); 10-year return on capital observations [[2017,0.3555853008161678],[2018,0.45404597976994465],[2019,0.4067449483200462],[2020,0.45549613107029074],[2021,0.44722991283486474],[2022,0.38114225242113703],[2023,0.16784078188063842],[2024,0.32762423850132966],[2025,0.3468113933632359],[2026,0.37289397782818945]]; median 0.3770181151246632. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 6.5% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2017: growth capex 0; upkeep 41947000; cash acquisitions 0; owner earnings 343632000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2018: growth capex 0; upkeep 40135000; cash acquisitions 137562000; owner earnings 582848000. Growth capex plus acquisitions / owner earnings = 0.23601693752058855.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2019: growth capex 0; upkeep 53598000; cash acquisitions 19981000; owner earnings 489814000. Growth capex plus acquisitions / owner earnings = 0.04079303572376453.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2020: growth capex 5705000; upkeep 171805000; cash acquisitions 30376000; owner earnings 296668000. Growth capex plus acquisitions / owner earnings = 0.121620801704262.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2021: growth capex 0; upkeep 157837000; cash acquisitions 2300000; owner earnings 451523000. Growth capex plus acquisitions / owner earnings = 0.005093871187071312.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2022: growth capex 13765000; upkeep 177624000; cash acquisitions 0; owner earnings 362916000. Growth capex plus acquisitions / owner earnings = 0.03792888712539541.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2023: growth capex 16258000; upkeep 190726000; cash acquisitions 229628000; owner earnings 366646000. Growth capex plus acquisitions / owner earnings = 0.6706359813007642.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2024: growth capex 0; upkeep 58118000; cash acquisitions 0; owner earnings 523602000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); FY2025: growth capex 0; upkeep 53358000; cash acquisitions 0; owner earnings 607141000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/779152/000077915226000067/jkhy-20260630.htm (filed 2026-08-28); FY2026: growth capex 0; upkeep 67103000; cash acquisitions 42390000; owner earnings 648914000. Growth capex plus acquisitions / owner earnings = 0.06532452682481808.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); Dividend observations: [[2017,91707000],[2018,105021000],[2019,118745000],[2020,127421000],[2021,133800000],[2022,139070000],[2023,147237000],[2024,155877000],[2025,164644000],[2026,170405000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/779152/000077915226000067/jkhy-20260630.htm (filed 2026-08-28); FY2026: cash repurchases 448173000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); JKHY.US SharesStats.PercentInsiders = 0.62 percentage points; cache date 2026-10-16.

### What could break it

"Failure to achieve favorable renewals of service contracts could negatively affect our business." (SEC filing, Aug 2026)

- Source: https://www.sec.gov/Archives/edgar/data/779152/000077915226000067/jkhy-20260630.htm (filed 2026-08-28); Failure to achieve favorable renewals of service contracts could negatively affect our business.

### What the price says

The price assumes cash profits grow 5.9% yearly over ten years; actual growth was 8.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-28); Ten-year compound average after fade. Initial solved rate 0.08747690836264377. Price 156.47; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 4.0408106955627465 → FY2026 9.007315075718669. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $81.02 per share

- 2016-11: $86.44 per share

- 2016-12: $88.78 per share

- 2017-01: $89.78 per share

- 2017-02: $93.77 per share

- 2017-03: $93.10 per share

- 2017-04: $96.92 per share

- 2017-05: $106.21 per share

- 2017-06: $103.87 per share

- 2017-07: $107.32 per share

- 2017-08: $103.07 per share

- 2017-09: $102.79 per share

- 2017-10: $110.13 per share

- 2017-11: $115.32 per share

- 2017-12: $116.96 per share

- 2018-01: $124.66 per share

- 2018-02: $117.30 per share

- 2018-03: $120.95 per share

- 2018-04: $119.48 per share

- 2018-05: $125.06 per share

- 2018-06: $130.36 per share

- 2018-07: $134.70 per share

- 2018-08: $158.44 per share

- 2018-09: $160.08 per share

- 2018-10: $149.83 per share

- 2018-11: $139.70 per share

- 2018-12: $126.52 per share

- 2019-01: $133.55 per share

- 2019-02: $132.63 per share

- 2019-03: $138.74 per share

- 2019-04: $149.06 per share

- 2019-05: $131.22 per share

- 2019-06: $133.92 per share

- 2019-07: $139.70 per share

- 2019-08: $144.96 per share

- 2019-09: $145.97 per share

- 2019-10: $141.56 per share

- 2019-11: $151.94 per share

- 2019-12: $145.67 per share

- 2020-01: $149.54 per share

- 2020-02: $151.74 per share

- 2020-03: $155.24 per share

- 2020-04: $163.55 per share

- 2020-05: $180.86 per share

- 2020-06: $184.03 per share

- 2020-07: $178.30 per share

- 2020-08: $165.42 per share

- 2020-09: $162.59 per share

- 2020-10: $148.25 per share

- 2020-11: $160.86 per share

- 2020-12: $161.99 per share

- 2021-01: $144.79 per share

- 2021-02: $148.44 per share

- 2021-03: $151.72 per share

- 2021-04: $162.83 per share

- 2021-05: $154.15 per share

- 2021-06: $163.51 per share

- 2021-07: $174.09 per share

- 2021-08: $176.38 per share

- 2021-09: $164.06 per share

- 2021-10: $166.48 per share

- 2021-11: $151.63 per share

- 2021-12: $166.99 per share

- 2022-01: $167.81 per share

- 2022-02: $176.80 per share

- 2022-03: $197.05 per share

- 2022-04: $189.58 per share

- 2022-05: $188.12 per share

- 2022-06: $180.02 per share

- 2022-07: $207.77 per share

- 2022-08: $192.20 per share

- 2022-09: $182.27 per share

- 2022-10: $199.06 per share

- 2022-11: $189.35 per share

- 2022-12: $175.56 per share

- 2023-01: $180.09 per share

- 2023-02: $164.24 per share

- 2023-03: $150.72 per share

- 2023-04: $163.34 per share

- 2023-05: $152.89 per share

- 2023-06: $167.33 per share

- 2023-07: $167.57 per share

- 2023-08: $156.78 per share

- 2023-09: $151.14 per share

- 2023-10: $140.99 per share

- 2023-11: $158.69 per share

- 2023-12: $163.41 per share

- 2024-01: $165.83 per share

- 2024-02: $173.77 per share

- 2024-03: $173.73 per share

- 2024-04: $162.69 per share

- 2024-05: $164.68 per share

- 2024-06: $166.02 per share

- 2024-07: $171.48 per share

- 2024-08: $173.03 per share

- 2024-09: $176.54 per share

- 2024-10: $181.93 per share

- 2024-11: $176.18 per share

- 2024-12: $175.30 per share

- 2025-01: $174.09 per share

- 2025-02: $173.59 per share

- 2025-03: $182.60 per share

- 2025-04: $173.43 per share

- 2025-05: $181.17 per share

- 2025-06: $180.17 per share

- 2025-07: $169.82 per share

- 2025-08: $163.26 per share

- 2025-09: $148.93 per share

- 2025-10: $148.94 per share

- 2025-11: $174.48 per share

- 2025-12: $182.48 per share

- 2026-01: $179.21 per share

- 2026-02: $162.46 per share

- 2026-03: $158.04 per share

- 2026-04: $153.75 per share

- 2026-05: $136.32 per share

- 2026-06: $137.74 per share

- 2026-07: $154.04 per share

- 2026-08: $167.91 per share

- 2026-09: $143.24 per share

- 2026-10: $156.47 per share

## Annual estimated value (USD per share)

- FY2017: low $60.40 per share, central $85.88 per share, high $100.68 per share

- FY2018: low $68.41 per share, central $99.79 per share, high $117.29 per share

- FY2019: low $70.80 per share, central $102.91 per share, high $120.82 per share

- FY2020: low $77.64 per share, central $109.91 per share, high $128.68 per share

- FY2021: low $86.84 per share, central $126.60 per share, high $148.77 per share

- FY2022: low $94.34 per share, central $131.69 per share, high $154.52 per share

- FY2023: low $72.25 per share, central $98.77 per share, high $115.80 per share

- FY2024: low $80.76 per share, central $114.15 per share, high $133.89 per share

- FY2025: low $111.67 per share, central $161.59 per share, high $189.76 per share

- FY2026: low $115.65 per share, central $164.08 per share, high $192.65 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/779152/000077915226000067/jkhy-20260630.htm); period 2026-06-30, filed 2026-08-28.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.