CluenexJack Henry & Associates JKHY
Jack Henry & Associates scores good on business quality (7.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Jack Henry & Associates does
Jack Henry & Associates sells core information processing solutions, transaction processing, and payment services to over 800 banks and credit unions. Revenue comes from recurring processing fees and software licenses that keep financial institutions running.
- What it does best
Jack Henry locks in community banks with mission-critical core processing systems that boast near-zero churn. Switching core providers is an existential risk for a bank, creating massive friction. Its operating margin of 25.0% outpaces FIS at 17.8% on core efficiency.
- The main risk
Customer concentration among regional and community financial institutions exposes Jack Henry to industry consolidation. If community banks merge into larger national players using competing proprietary systems, revenue per lost core client leaves a permanent hole.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 25.0% with a net margin of 19.8%, driven by high-margin recurring software maintenance. The business expands its profitability cleanly as revenue scales, supported by a 23.5% return on equity.
Switching costs form an elite moat locking in regional bank and credit union operators. With an exceptional moat score of 9.0 and a return on equity of 23.5%, rivals cannot replicate its integrated core database architecture within years.
Revenue grew 7.1% to $2.5B, tracking just below the middle of its sector at the 46th percentile. History shows steady multi-year top-line expansion from $2.1B in 2023, though the rate remains modest compared to aggressive fintech disruptors.
Debt is practically non-existent with a debt-to-equity ratio of 0.02 and interest coverage at 117x, making debt costs a rounding error. Free cash flow reached $507M, rising steadily from $336M in 2024. The balance sheet is getting stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on JKHY
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Jack Henry & Associates scores good on the Cluenex quality check (7.4 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 26, 2026.
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Cite this page: Cluenex, “Jack Henry & Associates (JKHY)”, https://cluenex.com/stocks/jkhy/, data as of Oct 10, 2026.