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 21.0 · P/B 5.0
💡A bank core-software leader at 26.0% operating margin and 24.9% ROE. Debt-free (D/E 0.06), 35 years of dividend growth. The 21x 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 July 24 close, as of 2026-07-24
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 $2.52B, operating margin 26.0%, ROE 24.9%.
Current Price
$150.58
+1.59%+$2.35· Close 2026-07-24
Analyst Consensus Target (external reference)
$185.71
Avg. of 16 external analysts · stockanalysis (16-analyst consensus, Buy · high $208 / low $158)
P/E (TTM)
21.0x
TTM · low end of its 10-yr range
ROE
24.9%
TTM · on a debt-free base
Operating margin
26.0%
TTM
Debt/Equity
0.06x
effectively debt-free
Dividend yield
1.62%
35 straight years of increases
Market cap
$10.7B
as of 2026-07-24
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 9-year CAGR of +6.4%, rising every year ($1.35B in 2016 to $2.38B in 2025), with net income +6.9% and EPS +8.0% 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 (that year P/E and ROE mirror it). Q3 FY2026 revenue was $636M (+8.7% YoY). The stock sits ~22% below its high on fears that bank M&A shrinks the customer pool faster than new contracts replace it.
9-Year CAGR: Revenue +6.4% · Operating Income +5.2% · Net Income +6.9% · EPS +8.0%
Source: SEC EDGAR 10-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 $2.52B of revenue is a fifth to an eighth of Fiserv ($21.1B) and FIS ($11.4B), but its 24.9% ROE is the highest and its 0.06x debt-to-equity means it is effectively debt-free (both peers carry 1.1-1.3x leverage). Its 21x P/E is more than double the peers' 8-9x — 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 -22% drawdown.Source: company 10-K, industry reports
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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
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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
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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 $150.58 +1.59% · as of 2026-07-24
Q. What are the key value metrics for Jack Henry (JKHY)?P/E (TTM) 21.0, ROE 24.9%, operating margin 26.0%, debt-to-equity 0.06x (debt-free), dividend yield 1.62%, and a 9-year revenue CAGR of +6.4% (Source: stockanalysis, SEC EDGAR, as of 2026-07-24).
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 22%?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 the latest quarter was +8.7%.
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.