📊 JKHY Key Takeaways
Is Jack Henry & Associates Inc. (JKHY) a Good Investment?
Jack Henry & Associates demonstrates exceptional fundamental financial health with robust profitability (26.2% operating margin, 20.6% net margin) and exceptional free cash flow generation ($412.7M, 21.7% FCF margin). A fortress balance sheet with minimal debt (0.04x Debt/Equity), strong liquidity (1.74x current ratio), and excellent capital returns (18.3% ROE) provide stability. However, the extraordinary 13,613% YoY revenue growth requires clarification as a potential data anomaly or major acquisition, and the low cash position relative to company size warrants monitoring.
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.
Jack Henry & Associates Inc. Key Strengths (JKHY)
- Exceptional profitability margins (26.2% operating, 20.6% net) indicating strong operational efficiency
- Outstanding free cash flow generation of $412.7M with 21.7% FCF margin demonstrating excellent cash conversion
- Fortress balance sheet with minimal leverage (0.04x Debt/Equity), strong interest coverage (61.8x), and no solvency concerns
- Strong returns on deployed capital (18.3% ROE, 12.8% ROA) showing efficient use of shareholder funds
- Solid liquidity position (1.74x current ratio) supporting operational flexibility
- 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
- Highly unusual revenue growth of 13,613% YoY suggests either significant data anomaly, major one-time acquisition, or non-recurring event - sustainability unclear
- Low absolute cash position ($20.6M) relative to asset base and scale raises questions about working capital management
- Minimal insider trading activity (1 Form 4 filing in 90 days) provides limited signal on management confidence
- 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
- Profitability margin sustainability on expanded revenue base - track operating margin trends
- Free cash flow consistency and operating cash flow to net income conversion
- Cash balance growth trajectory and capital allocation decisions (dividends, debt paydown, acquisitions)
- Revenue growth normalization (organic YoY)
- FCF margin (FCF/Revenue)
Jack Henry & Associates Inc. (JKHY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
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 |
|---|---|---|---|
| Q3 2026 | $585.1M | $111.1M | $1.52 |
| 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 |
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 Grade of A from Claude (A) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JKHY's key strengths?
Claude: Exceptional profitability margins (26.2% operating, 20.6% net) indicating strong operational efficiency. Outstanding free cash flow generation of $412.7M with 21.7% FCF margin demonstrating excellent cash conversion. 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: Highly unusual revenue growth of 13,613% YoY suggests either significant data anomaly, major one-time acquisition, or non-recurring event - sustainability unclear. Low absolute cash position ($20.6M) relative to asset base and scale raises questions about working capital management. 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 $1.9B.
Does JKHY pay dividends?
Jack Henry & Associates Inc. pays dividends, with $127.5M 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 $5.41.
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 grade reflects both perspectives for balanced insights.
What is JKHY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Jack Henry & Associates Inc. has a A grade 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 18.3% (sector avg: 22%), net margin of 20.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is JKHY's AI grade for 2026?
Our dual AI analysis gives Jack Henry & Associates Inc. a combined A grade 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 $459.3M, with capital expenditures of $46.6M. FCF margin is 21.7%.
How does JKHY compare to other Technology stocks?
Vs Technology sector averages: Net margin 20.6% (avg: 18%), ROE 18.3% (avg: 22%), current ratio 1.74 (avg: 2.5).