Very little debt to repay and plenty of cash on hand, so it is hard to shake.
Metrics · D/E ~6% · Current Ratio 1.74
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 23.4 · P/B 5.4
💡A bank core-software leader at 25.3% operating margin and 23.6% ROE. Debt-free (D/E 0.06), 35 years of dividend growth. The 23x P/E is at its 10-year low end.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: stockanalysis (margins, ROE, P/B are TTM) · P/E on the Aug 19 close · current ratio is on the FQ3 (Mar 31) balance sheet, pending the FY26 10-K, as of 2026-08-19
Business Summary · Key Value Metrics
Supplies core banking systems, payments, and digital-banking software to small and mid-size U.S. banks and credit unions. Replacing a core system takes 2-3 years and millions of dollars, so banks rarely switch. Over 92% of revenue is recurring and core-customer retention runs 98-99% a year. TTM revenue $2.54B, operating margin 25.3%, ROE 23.6%.
Current Price
$163.06
+6.49%+$9.94· Close 2026-08-19
Analyst Consensus Target (external reference)
$187.00
Avg. of 17 external analysts · stockanalysis (17-analyst consensus, Buy · high $209 / low $158)
P/E (TTM)
23.4x
TTM · low end of its 10-yr range
ROE
23.6%
TTM · on a debt-free base
Operating margin
25.3%
TTM
Debt/Equity
0.06x
effectively debt-free
Dividend yield
1.50%
35 straight years of increases
Market cap
$11.6B
as of 2026-08-19
Economic Moat · Key Business Segments
JKHY's moat is the extreme switching cost of a core banking system. Replacing the core that processes accounts and transactions is a 2-3 year, multi-million-dollar project, so core-customer retention runs 98-99% a year. Contracts are typically seven years and over 92% of revenue is recurring processing and subscription fees. Bank IT is essential spend even in a recession, making revenue defensive, and a near-net-cash balance sheet means no forced selling in a crash (Source: company IR, stockanalysis).
Core switching cost
Replacing a core takes 2-3 years and millions. 98-99% retention, 7-year contracts lock customers in.
92%+ recurring revenue
Processing and subscription fees are 92%+ of revenue. Bank IT is essential spend in a downturn.
Debt-free fortress
D/E 0.06, near net cash. No forced-sale or funding pressure in a crash.
Dividend aristocrat
35 straight years of dividend increases. Low growth but very steady cash flow.
10-Year Financial Trends
Revenue compounded at a 10-year CAGR of +6.5%, rising every year ($1.35B in 2016 to $2.54B in 2026), with net income +7.3% and EPS +8.4% on buybacks. FY2018 net income ($365M, EPS $4.70) was inflated by a TCJA deferred-tax benefit (-2.5% effective rate); normalized EPS is about $3.58 (P/E and ROE mirror it). FY2026 (to June 30) closed at $2.54B revenue (+7.1%) and $6.98 diluted EPS (+11.9%); Q4 GAAP operating income fell 12.2% (-3.1% adjusted) on lower deconversion revenue. The stock sits ~16% below its high on fears that bank M&A shrinks the customer pool faster than new contracts replace it.
10-Year Growth
Revenue$2.5B · CAGR +6.5%
Operating Income$0.6B · CAGR +5.9%
EPS$6.98 · CAGR +8.4%
10-Year Valuation
P/E (year-end)19.7x · avg 33.3x
ROE24.0% · avg 23.5%
Operating Margin25.0% · avg 23.8%
📊 Annual Data Table (JKHY) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROE (%)
Op. Margin (%)
2016
1.35
0.36
3.12
28
25
26.7
2017
1.39
0.34
2.93
35.5
21.9
24.6
2018
1.47
0.36
4.7
27.7
30.1
24.3
2019
1.55
0.35
3.52
38.1
19.8
22.4
2020
1.7
0.38
3.86
47.7
19.9
22.4
2021
1.76
0.4
4.12
39.7
21.7
22.7
2022
1.94
0.47
4.94
36.4
26.9
24.4
2023
2.08
0.48
5.02
33.3
24.5
23.1
2024
2.22
0.49
5.23
31.7
22.1
22.1
2025
2.38
0.57
6.24
28.9
22.9
23.9
2026
2.54
0.64
6.98
19.7
24
25
— = no data for that year/metric (P/E omitted before EPS turned positive)
10Y CAGR: Revenue +6.5% · Operating Income +5.8% · Net Income +7.3% · EPS +8.4%
Source: SEC EDGAR 10-K and 8-K (revenue, operating income, net income, diluted EPS, equity, tax); June year-end closes from Yahoo Finance; cross-checked against stockanalysis. P/E is June-end close ÷ diluted EPS and matches stockanalysis to the decimal for FY2021-2025. FY2018 EPS was inflated by a TCJA tax benefit. Revenue is on the ASC 606 basis from FY2017, so the FY2016 (old basis) boundary is discontinuous.
Mega-Cap Value Metric Comparison
JKHY's $2.54B of revenue is a fifth to an eighth of Fiserv ($20.9B) and FIS ($12.2B), but its 23.6% ROE is the highest and its 0.06x debt-to-equity means it is effectively debt-free (both peers carry 1.0-1.3x leverage). Its 23x P/E is more than double the peers' 6-10x — a premium for the debt-free, high-retention quality (Source: stockanalysis, company IR).
Bank consolidation shrinks the customer pool— As regional-bank M&A cuts the number of independent customers, a single large loss bites harder and is hard to replace with new outsourcing wins. This is the actual trigger for the recent -16% drawdown.Source: company 10-K, industry reports
●
Cloud-core competition— Microservices cores (Thought Machine, Temenos) and Fiserv (via Finxact) could win new-build and smaller-institution deals. That said, replacing an existing bank core remains rare.Source: company 10-K, industry reports
●
Structural low growth— Revenue growth is steady but low mid-single digits. Upside torque is limited, so a crash that pushes the P/E below 20x is the attractive zone.Source: company IR
●
FY2018 tax one-off— FY2018 EPS of $4.70 was inflated by a TCJA tax benefit and should be normalized (~$3.58) when reading the series and CAGR.Source: SEC EDGAR 10-K
✦ ValueCrab Dashboard PreviewJKHY $163.06 +6.49% · as of 2026-08-19
Q. What are the key value metrics for Jack Henry (JKHY)?P/E (TTM) 23.4, ROE 23.6%, operating margin 25.3%, debt-to-equity 0.06x (debt-free), dividend yield 1.50%, and a 10-year revenue CAGR of +6.5% (Source: stockanalysis, SEC EDGAR, as of 2026-08-19).
Q. How is bank software evaluated?Recurring-revenue share and customer retention are the core measures. Over 92% of JKHY's revenue is recurring processing and subscription fees, and core-customer retention runs 98-99% a year. Replacing a core is a 2-3 year, multi-million-dollar project, so customers rarely leave.
Q. Why is the stock down 16%?Fears that regional-bank M&A will slow growth by shrinking the independent customer count. It is not fraud or a broken moat — a low-growth re-rating. Revenue has in fact risen every year for a decade, and FY2026 closed +7.1%.
Q. Why a crash-buy candidate?Bank IT is essential spend even in a recession, and JKHY has 92% recurring revenue, 98% retention, and a debt-free fortress balance sheet — the type that holds up with no forced-sale pressure in a crash. But it is low-growth, so the idea is to accumulate when a crash pushes the P/E lower. ValueCrab does not provide buy/sell judgments.