📊 JKHY Key Takeaways
Is Jack Henry & Associates Inc. (JKHY) a Good Investment?
Jack Henry & Associates demonstrates exceptional fundamental strength with industry-leading operating margins (27.2%) and net margins (21.3%), coupled with robust free cash flow generation ($243.2M, 19.2% FCF margin) and a fortress balance sheet with minimal debt (0.01x D/E). However, the unexplained +13,613% YoY revenue surge raises material questions about growth sustainability and necessitates clarification on whether this represents acquisition-driven expansion or a one-time event.
JKHY exhibits strong, capital-light fundamentals with high gross and operating margins, solid ROA/ROE, and robust free cash flow supported by a conservative balance sheet. Cash generation (FCF margin ~19%) and minimal leverage point to durability across cycles. The extreme YoY revenue spike and flat net income suggest growth quality needs verification, but overall profitability and cash conversion justify a constructive view.
Why Buy Jack Henry & Associates Inc. Stock? JKHY Key Strengths
- Exceptional profitability with 21.3% net margin and 27.2% operating margin
- Strong free cash flow generation of $243.2M with 19.2% FCF margin demonstrating high-quality earnings
- Fortress balance sheet with virtually no leverage (0.01x debt-to-equity, $20M LT debt) and 42.6x interest coverage
- Solid operational efficiency with ROA of 8.8% and ROE of 12.2%
- Strong profitability: 48% gross, 27% operating, 21% net margins
- Robust free cash flow with low capex; FCF margin ~19%
- Very low leverage (D/E 0.01x) and high interest coverage (42.6x)
JKHY Stock Risks: Jack Henry & Associates Inc. Investment Risks
- Unexplained 13,613% YoY revenue growth suggests potential major acquisition, one-time event, or data anomaly requiring clarification
- Disproportionately low cash balance ($28.2M) relative to $3.1B asset base indicates either aggressive cash deployment or potential liquidity constraints
- Minimal insider activity (1 Form 4 filing in 90 days) could signal reduced insider confidence in near-term prospects
- Unusually high reported YoY revenue growth may be non-recurring or data-related; sustainability uncertain
- EPS up while net income flat suggests share count effects; underlying earnings growth may be modest
- Potential margin compression from cost inflation or necessary reinvestment
Key Metrics to Watch
- Revenue growth normalization and underlying organic growth rate post-anomaly
- Free cash flow sustainability and cash conversion ratio
- Debt-to-equity ratio and cash position trajectory relative to operational needs
- Revenue growth normalization (organic YoY)
- FCF margin (FCF/Revenue)
Jack Henry & Associates Inc. (JKHY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Jack Henry & Associates Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
JKHY Profit Margin, ROE & Profitability Analysis
JKHY vs Technology Sector: How Jack Henry & Associates Inc. Compares
How Jack Henry & Associates Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Jack Henry & Associates Inc. Stock Overvalued? JKHY Valuation Analysis 2026
Based on fundamental analysis, Jack Henry & Associates Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Jack Henry & Associates Inc. Balance Sheet: JKHY Debt, Cash & Liquidity
JKHY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Jack Henry & Associates Inc.'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.02 reflects profitable operations.
JKHY Revenue Growth, EPS Growth & YoY Performance
JKHY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $573.8M | $97.8M | $1.34 |
| Q1 2026 | $601.0M | $119.2M | $1.63 |
| Q3 2025 | $538.6M | $87.1M | $1.19 |
| Q2 2025 | $545.7M | $92.0M | $1.26 |
| Q1 2025 | $571.4M | $101.7M | $1.39 |
| Q3 2024 | $508.6M | $81.5M | $1.12 |
| Q2 2024 | $505.3M | $80.8M | $1.10 |
| Q1 2024 | $529.2M | $101.7M | $1.39 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Jack Henry & Associates Inc. Dividends, Buybacks & Capital Allocation
JKHY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Jack Henry & Associates Inc. (CIK: 0000779152)
📋 Recent SEC Filings
❓ Frequently Asked Questions about JKHY
What is the AI rating for JKHY?
Jack Henry & Associates Inc. (JKHY) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JKHY's key strengths?
Claude: Exceptional profitability with 21.3% net margin and 27.2% operating margin. Strong free cash flow generation of $243.2M with 19.2% FCF margin demonstrating high-quality earnings. ChatGPT: Strong profitability: 48% gross, 27% operating, 21% net margins. Robust free cash flow with low capex; FCF margin ~19%.
What are the risks of investing in JKHY?
Claude: Unexplained 13,613% YoY revenue growth suggests potential major acquisition, one-time event, or data anomaly requiring clarification. Disproportionately low cash balance ($28.2M) relative to $3.1B asset base indicates either aggressive cash deployment or potential liquidity constraints. ChatGPT: Unusually high reported YoY revenue growth may be non-recurring or data-related; sustainability uncertain. EPS up while net income flat suggests share count effects; underlying earnings growth may be modest.
What is JKHY's revenue and growth?
Jack Henry & Associates Inc. reported revenue of $1.3B.
Does JKHY pay dividends?
Jack Henry & Associates Inc. pays dividends, with $84.0M distributed to shareholders in the trailing twelve months.
Where can I find JKHY SEC filings?
Official SEC filings for Jack Henry & Associates Inc. (CIK: 0000779152) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is JKHY's EPS?
Jack Henry & Associates Inc. has a diluted EPS of $3.70.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is JKHY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Jack Henry & Associates Inc. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is JKHY stock overvalued or undervalued?
Valuation metrics for JKHY: ROE of 12.2% (sector avg: 22%), net margin of 21.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy JKHY stock in 2026?
Our dual AI analysis gives Jack Henry & Associates Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is JKHY's free cash flow?
Jack Henry & Associates Inc.'s operating cash flow is $273.3M, with capital expenditures of $30.1M. FCF margin is 19.2%.
How does JKHY compare to other Technology stocks?
Vs Technology sector averages: Net margin 21.3% (avg: 18%), ROE 12.2% (avg: 22%), current ratio 1.60 (avg: 2.5).