Orin
JKHYNasdaq·Information Technology Services

Jack Henry & Associates, Inc. JKHY

Market cap $10.5BP/E 21.3× trailingGross margin 43.6%Reports Tue 3 Nov, after the close
$148.33
−0.77 (−0.52%)Wed close 16:00 ET
52-wk $121.04 – $193.39
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Orin's take
0.62conviction · moderate
Refreshed 29 Aug · take v9. A new filing or a print queues the next refresh.

Jack Henry's fundamentals for the fiscal year ended 2026-06-30 are genuinely strong — 5.1% revenue growth to $2.50B, 11.9% EPS growth to $6.98, a 27.8% FCF margin, and only $40M of total debt — and FY27 GAAP EPS guidance above estimates reinforces the trajectory. However, at $169.73 the stock trades at a 57% P/S premium and 39% EV/EBITDA premium to peers, RSI sits at 65.2 approaching overbought, and the smart money score has cooled from positive to roughly neutral at -0.0003 as of the quarter ended 2026-06-30.

The improving margin profile and in-line 24.3x P/E justify holding existing positions, but the current technical setup and valuation premiums limit the appeal of new entry at these levels.

What could go wrong

  • Valuation stretched on non-earnings multiples. P/S of 4.76x is 57% above the peer median of 3.04x and EV/EBITDA of 14.02x is 39% above the peer median of 10.08x, leaving limited multiple expansion room.
  • Momentum overextended. RSI at 65.2 approaches overbought territory and the stock trades roughly 12% above its 50-day MA of $151.04, raising the risk of a pullback after the post-earnings run.
  • Institutional sentiment cooling. Smart money score has declined from 0.0197 in September 2024 to -0.0003 as of June 2026, even as fund count rose to 57, suggesting positioning is less constructive.
  • Revenue growth deceleration. YoY revenue growth slowed from 7.2% in FY2025 to 5.1% in FY2026, which could compress the premium multiple if the trend continues.

What would change my mind

Pullback to 200-day MA. Stock retreats toward the 200-day MA of $159.88 with RSI cooling below 50, offering a better entry point for upgrading to buy.bullish
FY27 margin acceleration. Q1 FY2027 results show operating margin above 25% or FCF margin above 30%, confirming the expansion trajectory justifies current premiums.bullish
Revenue growth re-acceleration. Quarterly revenue growth re-accelerates above 7% YoY, reversing the deceleration from FY2025 to FY2026.bullish
Margin compression or guidance cut. FY27 guidance is revised downward or operating margin contracts below 24%, signaling the quality premium is eroding.bearish

Where this comes from: FMP annual fundamentals, derived_metrics FY2026 · derived_metrics FY2026, FMP annual fundamentals · peer_relative as of 2026-08-28 · technicals as of 2026-08-28. Orin's read on JKHY; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$639.7M0.0% of fund
State Street$510.1M0.0% of fund
Vanguard Portfolio Management$490.3M0.0% of fund
Geode Capital Management$378.8M0.0% of fund
Morgan Stanley$327.1M0.0% of fund
Invesco$259.1M0.0% of fund

77 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 187 Form 4 filings, net −$14.2M. Of the 50 on hand, none was an open-market trade— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Technology
MetricNowOwn medianSector
P/E21.3×33.3×53.3×
EV/EBITDA12.3×17.8×
P/S4.16×5.87×
P/B5.2×6.6×

Its P/E sits below all 5 of the last 5 years (−3.33σ from its own mean).

What the price assumes

3.9%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.7B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

24 firms · 2026-09-23
Consensus target

$188

$170$215 · +27% against today's price

How they rate it
  • 14 buy or overweight
  • 10 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 41.7× of 3 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
JKHYJack Henry & Associates, Inc.$11B21.3×12.3×43.6%19.8%23%
AKAMAkamai Technologies, Inc.$17B41.7×19.5×56.4%9.5%8%
APLDApplied Digital Corp.$8B22.4%-42.3%-17%
EPAMEPAM Systems, Inc.$6B14.9×7.5×28.3%7.2%11%
SWKSSkyworks Solutions, Inc.$14B47.1×17.2×40.7%7.2%5%

The median is of the 3 peers listed above and nothing else — check it against the column. This company trades 49.0% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY15 24.8×FY26 19.7×

What its sector has traded at

Technology
FY14 9.0×FY26 48.0×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$206$130.07 · +58%2026-06-10
Levered DCF$165$130.07 · +27%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $148.33
52-week range$121 – $193
Analyst targets$170 – $215
Standard DCF$206 as of 2026-06-10, when it was $130.07
Levered DCF$165 as of 2026-06-10, when it was $130.07
At own 5y-median P/E (33×)$232
At 5y P/E range (29–40×)$202 – $277
At sector P/E (53×)$372

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.