Jack Henry & Associates, Inc. (NASDAQ:JKHY) Signals Near-Term Downside Despite Under-Valuation

Jack Henry shows valuation support while technical momentum currently favors lower prices; operational cash flow and margins provide a fundamental backstop. Recent contract wins and corporate recognitions contrast with momentum indicators that point to near-term pressure.

Recent News

On July 14, 2025, Jack Henry announced Abound Credit Union selected its Symitar core platform; on July 10 the company earned a spot on TIME’s America’s Best Mid-Size Companies list; on July 8 Datos Insights highlighted Jack Henry as a market leader for small business digital banking; on July 7 First Mid Bank & Trust selected Jack Henry for a platform modernization project.

Technical Analysis

Directional indicators show a strong trend environment: ADX registers 29.65, which signals a robust directional move, while DI- sits at 33.6 (dip & reversal) and DI+ at 16.16 (peak & reversal); those readings produce a bearish directional bias that supports near-term downward price pressure relative to current valuation.

MACD reads -3.24 with the MACD below its signal line (-2.58) and a peak-and-reversal in momentum, which signals continuing bearish momentum and reinforces the directional indicators’ implication of near-term weakness.

MRO stands at -31.83, indicating the price sits below the model target and therefore carries mean-reversion upside potential; that valuation-driven upside conflicts with momentum signals and suggests any bounce would reflect target convergence rather than renewed bullish trend initiation.

RSI at 38.72 with a peak-and-reversal trend signals falling relative strength and room for further downside before classical oversold thresholds arrive; this aligns with MACD and DI readings and favors continued pressure over the next several sessions.

Price context amplifies the bearish picture: close at $151.50 sits below the 20-day average ($157.49), 50-day average ($164.32), and 200-day average ($172.36); the 12-day EMA trends down. Price trades beneath the Ichimoku cloud (Senkou A $168.03, Senkou B $170.59) and below the SuperTrend upper band ($157.31), establishing multiple short-term resistances. Bollinger lower band at $152.32 sits just above the close, indicating the stock trades at or just beneath standard short-term volatility support and therefore near short-term oversold territory.

 


Fundamental Analysis

Revenue and profitability show constructive trends that support the WMDST valuation call of under-valued. Total revenue registers $615,372,000 with YoY revenue growth of 30.575% and QoQ revenue growth of 164.216%, both signaling substantial recent top-line expansion. Gross margin at 44.119% improved by 6.185 percentage points YoY and 5.576 percentage points QoQ, reinforcing operating leverage.

Operating income at $155,698,000 and EBIT of $162,051,000 produce an EBIT margin of 26.334%, which sits below the industry peer mean of 32.473% but above the industry peer median of 19.824%, indicating margin performance stronger than many peers while still short of the peer average. EBIT margin expanded by 6.525 percentage points QoQ and 9.812 percentage points YoY.

Net income reached $127,604,000. GAAP EPS printed $1.56 against an estimate of $1.50, yielding an EPS surprise of 4.0% (difference $0.06). Forward EPS stands at $1.58 with a forward P/E of 112.69; trailing P/E reads 110.95. Free cash flow totaled $271,263,000 and free cash flow yield equals 2.188%, with free cash flow growth showing large QoQ and YoY expansion (freeCashGrowth QoQ ~438.326% and YoY ~58.303%). Operating cash flow reached $327,112,000 and cash plus short-term investments held $101,953,000 at period end.

Balance-sheet and coverage metrics present low financial risk: interest coverage sits at 77.09 and reported debt related to credit facilities reduced to zero at period-end per company reporting; current ratio reads 1.2719, close to the industry peer mean of 1.28188. Return on equity registers 5.988% with return on assets 4.271% and return on invested capital 6.067%, which reflect modest but improving capital returns given growth and margin expansion. Dividend payout ratio equals 33.055% and dividend yield approximates 0.34%.

Valuation context: WMDST values the stock as under-valued. High P/E and PEG metrics reflect long-duration growth expectations (PE 110.95, PEG 14.63), while strong free cash flow, rising margins, and a clean balance sheet support the under-valued determination despite premium multiples versus some peer measures. The MRO negative reading suggests room for price convergence toward fundamental targets if momentum reverses.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-06-30
REPORT DATE: 2025-08-19
NEXT REPORT DATE: 2025-11-04
CASH FLOW  Begin Period Cash Flow $ 39.9 M
 Operating Cash Flow $ 327.1 M
 Capital Expenditures $ -55.85 M
 Change In Working Capital $ 130.8 M
 Dividends Paid $ -42.18 M
 Cash Flow Delta $ 62.1 M
 End Period Cash Flow $ 102.0 M
 
INCOME STATEMENT REVENUE
 Total Revenue $ 615.4 M
 Forward Revenue $ 138.7 M
COSTS
 Cost Of Revenue $ 343.9 M
 Depreciation $ 10.6 M
 Depreciation and Amortization $ 51.5 M
 Research and Development $ 42.6 M
 Total Operating Expenses $ 459.7 M
PROFITABILITY
 Gross Profit $ 271.5 M
 EBITDA $ 213.5 M
 EBIT $ 162.1 M
 Operating Income $ 155.7 M
 Interest Income $ 6.4 M
 Interest Expense $ 2.1 M
 Net Interest Income $ 4.3 M
 Income Before Tax $ 159.9 M
 Tax Provision $ 32.3 M
 Tax Rate 20.222 %
 Net Income $ 127.6 M
 Net Income From Continuing Operations $ 127.6 M
EARNINGS
 EPS Estimate $ 1.50
 EPS Actual $ 1.56
 EPS Difference $ 0.06
 EPS Surprise 4.0 %
 Forward EPS $ 1.58
 
BALANCE SHEET ASSETS
 Total Assets $ 3.0 B
 Intangible Assets $ 1.5 B
 Net Tangible Assets $ 640.8 M
 Total Current Assets $ 681.5 M
 Cash and Short-Term Investments $ 102.0 M
 Cash $ 102.0 M
 Net Receivables $ 324.6 M
 Inventory —
 Long-Term Investments $ 443.6 M
LIABILITIES
 Accounts Payable $ 28.2 M
 Short-Term Debt —
 Total Current Liabilities $ 535.8 M
 Net Debt —
 Total Debt —
 Total Liabilities $ 913.1 M
EQUITY
 Total Equity $ 2.1 B
 Retained Earnings $ 3.4 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share $ 29.26
 Shares Outstanding 72.836 M
 Revenue Per-Share $ 8.45
VALUATION
 Market Capitalization $ 12.4 B
 Enterprise Value —
 Enterprise Multiple —
Enterprise Multiple QoQ —
Enterprise Multiple YoY —
Enterprise Multiple IPRWA —
 EV/R —
CAPITAL STRUCTURE
 Asset To Equity 1.429
 Asset To Liability 3.334
 Debt To Capital —
 Debt To Assets —
Debt To Assets QoQ —
Debt To Assets YoY —
Debt To Assets IPRWA —
 Debt To Equity —
Debt To Equity QoQ —
Debt To Equity YoY —
Debt To Equity IPRWA —
PRICE-BASED VALUATION
 Price To Book (P/B) 5.818
Price To Book QoQ -6.65 %
Price To Book YoY -10.643 %
Price To Book IPRWA high: 18.53
mean: 9.484
median: 8.649
JKHY: 5.818
low: -5.086
 Price To Earnings (P/E) 110.952
Price To Earnings QoQ -3.132 %
Price To Earnings YoY -6.98 %
Price To Earnings IPRWA high: 311.81
median: 129.079
mean: 124.607
JKHY: 110.952
low: -161.471
 PE/G Ratio 14.626
 Price To Sales (P/S) 20.145
Price To Sales QoQ -7.13 %
Price To Sales YoY -5.966 %
Price To Sales IPRWA high: 63.641
median: 63.007
mean: 41.321
JKHY: 20.145
low: 0.281
FORWARD MULTIPLES
Forward P/E 112.693
Forward PE/G 14.855
Forward P/S 89.374
EFFICIENCY OPERATIONAL
 Operating Leverage 2.326
ASSET & SALES
 Asset Turnover Ratio 0.206
Asset Turnover Ratio QoQ 2.852 %
Asset Turnover Ratio YoY 4.74 %
Asset Turnover Ratio IPRWA high: 0.467
JKHY: 0.206
mean: 0.15
median: 0.148
low: -0.019
 Receivables Turnover 2.007
Receivables Turnover Ratio QoQ -0.746 %
Receivables Turnover Ratio YoY 9.593 %
Receivables Turnover Ratio IPRWA high: 8.91
mean: 2.007
JKHY: 2.007
median: 1.875
low: -3.771
 Inventory Turnover —
Inventory Turnover Ratio QoQ —
Inventory Turnover Ratio YoY —
Inventory Turnover Ratio IPRWA —
 Days Sales Outstanding (DSO) 45.476
CASH CYCLE
 Cash Conversion Cycle Days (CCC) —
Cash Conversion Cycle Days QoQ —
Cash Conversion Cycle Days YoY —
Cash Conversion Cycle Days IPRWA —
CAPITAL DEPLOYMENT
 Cash Conversion Ratio 4.224
 CapEx To Revenue -0.091
 CapEx To Depreciation -5.281
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital $ 2.1 B
 Net Invested Capital $ 2.1 B
 Invested Capital $ 2.1 B
 Net Tangible Assets $ 640.8 M
 Net Working Capital $ 145.7 M
LIQUIDITY
 Cash Ratio 0.19
 Current Ratio 1.272
Current Ratio QoQ -6.602 %
Current Ratio YoY 27.551 %
Current Ratio IPRWA high: 8.192
mean: 1.282
JKHY: 1.272
median: 1.163
low: 0.102
 Quick Ratio —
Quick Ratio QoQ —
Quick Ratio YoY —
Quick Ratio IPRWA —
COVERAGE & LEVERAGE
 Debt To EBITDA —
 Cost Of Debt 1.048 %
 Interest Coverage Ratio 77.094
Interest Coverage Ratio QoQ 45.564 %
Interest Coverage Ratio YoY 123.289 %
Interest Coverage Ratio IPRWA high: 93.455
JKHY: 77.094
mean: 28.54
median: 24.959
low: -85.699
 Operating Cash Flow Ratio 0.296
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) 5.495
DIVIDENDS
 Dividend Coverage Ratio 3.025
 Dividend Payout Ratio 0.331
 Dividend Rate $ 0.58
 Dividend Yield 0.003
PERFORMANCE GROWTH
 Asset Growth Rate 3.818 %
 Revenue Growth 5.176 %
Revenue Growth QoQ 164.216 %
Revenue Growth YoY 30.575 %
Revenue Growth IPRWA high: 48.984 %
median: 11.911 %
mean: 10.38 %
JKHY: 5.176 %
low: -36.33 %
 Earnings Growth 7.586 %
Earnings Growth QoQ -43.527 %
Earnings Growth YoY -52.487 %
Earnings Growth IPRWA high: 200.0 %
mean: 20.25 %
median: 11.26 %
JKHY: 7.586 %
low: -261.224 %
MARGINS
 Gross Margin 44.119 %
Gross Margin QoQ 5.576 %
Gross Margin YoY 6.185 %
Gross Margin IPRWA high: 91.59 %
median: 75.664 %
mean: 64.257 %
JKHY: 44.119 %
low: -33.394 %
 EBIT Margin 26.334 %
EBIT Margin QoQ 6.525 %
EBIT Margin YoY 9.812 %
EBIT Margin IPRWA high: 140.428 %
mean: 32.473 %
JKHY: 26.334 %
median: 19.824 %
low: -150.653 %
 Return On Sales (ROS) 25.301 %
Return On Sales QoQ 2.346 %
Return On Sales YoY 5.504 %
Return On Sales IPRWA high: 72.429 %
mean: 30.901 %
JKHY: 25.301 %
median: 18.71 %
low: -141.554 %
CASH FLOW
 Free Cash Flow (FCF) $ 271.3 M
 Free Cash Flow Yield 2.188 %
Free Cash Flow Yield QoQ 441.584 %
Free Cash Flow Yield YoY 60.411 %
Free Cash Flow Yield IPRWA high: 15.392 %
JKHY: 2.188 %
median: 0.849 %
mean: 0.643 %
low: -24.314 %
 Free Cash Growth 428.448 %
Free Cash Growth QoQ 438.326 %
Free Cash Growth YoY 58.303 %
Free Cash Growth IPRWA high: 457.143 %
JKHY: 428.448 %
mean: 6.702 %
median: -23.922 %
low: -471.61 %
 Free Cash To Net Income 2.126
 Cash Flow Margin 25.762 %
 Cash Flow To Earnings 1.242
VALUE & RETURNS
 Economic Value Added —
 Return On Assets (ROA) 4.271 %
Return On Assets QoQ 12.306 %
Return On Assets YoY 20.31 %
Return On Assets IPRWA high: 14.526 %
JKHY: 4.271 %
mean: 3.982 %
median: 1.79 %
low: -14.505 %
 Return On Capital Employed (ROCE) 6.461 %
 Return On Equity (ROE) 0.06
Return On Equity QoQ 9.751 %
Return On Equity YoY 9.151 %
Return On Equity IPRWA high: 0.169
JKHY: 0.06
median: 0.042
mean: 0.038
low: -0.399
 DuPont ROE 6.124 %
 Return On Invested Capital (ROIC) 6.067 %
Return On Invested Capital QoQ 18.196 %
Return On Invested Capital YoY -96.986 %
Return On Invested Capital IPRWA high: 14.374 %
mean: 7.295 %
JKHY: 6.067 %
median: 4.251 %
low: -16.5 %

Six-Week Outlook

Momentum indicators favor near-term downside: directional and momentum measures align to suggest continuation of selling pressure unless MACD and DI readings reverse. Mean-reversion signals from MRO and improving cash flow create conditions for tactical rebounds, but multiple moving-average and Ichimoku resistances likely cap any early bounce. Expect price to probe short-term support near the lower Bollinger band and the 52-week low corridor, with any recovery likely to meet resistance in the $157–$164 area where the 20-day and 50-day averages, and the SuperTrend upper band, cluster. Monitor momentum crossover and MRO movement for evidence that valuation-driven buying replaces momentum-driven selling.

About Jack Henry & Associates, Inc.

Jack Henry & Associates, Inc. (NASDAQ:JKHY) develops financial technology solutions that connect people and financial institutions. Established in 1976 and headquartered in Monett, Missouri, the company operates through four primary segments: Core, Payments, Complementary, and Corporate and Other. The Core segment delivers essential information processing platforms for banks and credit unions, facilitating transactions and maintaining centralized customer information. The Payments segment provides secure payment processing tools, including ATM, debit, and credit card services, as well as online and mobile bill pay solutions. This segment also includes risk management products to ensure secure transactions. In the Complementary segment, Jack Henry enhances financial services with digital banking, treasury services, and fraud prevention solutions. The Corporate and Other segment supplies hardware and other essential products to support financial institutions. With a range of products like SilverLake, CIF 20/20, and Symitar for credit unions, Jack Henry & Associates empowers financial entities with digital products, electronic payment solutions, and comprehensive support services, contributing significantly to the fintech landscape.



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