📊 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.
Why Buy Jack Henry & Associates Inc. Stock? JKHY Key Strengths
- 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 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 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 rating reflects both perspectives for balanced insights.
Is JKHY a good stock to buy right now?
Based on our AI fundamental analysis in May 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 18.3% (sector avg: 22%), net margin of 20.6% (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 $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).