Stock fact sheet · data as of
Jack Henry & Associates, Inc. (JKHY): fair value, margin of safety and Wheel Score
Ticker symbol JKHY · Technology · Information Technology Services · United States · Growth Quality
Is JKHY undervalued?
At 179.16 (close of 5 Nov 2026), JKHY trades 21% over the GLS average fair value of 147.80. 4 of the 9 models land above the price and 5 below. A negative margin of safety fails the "below fair value" Wheel Trade Filter - the models see no discount, which does not make the business a poor one, only the price a full one.
The 9 models disagree widely: DDM gives 35.46 while Payback Time gives 282.07. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, JKHY is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 23, growth score 47, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for JKHY
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 183.02 | +2% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 70.49 | -61% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 208.81 | +17% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 75.37 | -58% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 137.53 | -23% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 255.30 | +42% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 282.07 | +57% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 35.46 | -80% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 82.11 | -54% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -6.34 | -104% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 187.33 | +5% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health JKHY scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 9.4 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are high - ROIC 24.0%, ROE 24.5%, ROA 16.0% - with debt at 0.02 times equity and a free-cash-flow yield of 5.7%.
The dividend yield is 1.35% with a payout ratio of 33% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Payments 39%, Core 31%, Complementary 30% (quarter Q4 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 24.0% |
|---|---|---|---|
| GLS Moat | 9.4 / 10 | ROE | 24.5% |
| Debt / equity | 0.02 | ROA | 16.0% |
| Free-cash-flow yield | 5.7% | Payout ratio | 33% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 10 / 10 |
Wheel Score 39: Weak
JKHY scores 39 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 3, below fair value - trades 21% above our fair value, and the parts are thin too - value weak, premium good, moat strong, health good, red flags good, option trading weak, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 31% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is thin - 1,379 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.5M shares a day on a market cap of $12.6B, with a beta of 0.55 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 21% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 21% above fair value | |
| Premium | Good | implied volatility 31% | |
| Moat | Strong | moat 9.4/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Weak | 533 contracts a day, 1,379 open interest | |
| Stability | Good | beta 0.55, $12.6B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Feb 2027, 89 days away - outside the window of a 30-45-day put sold today.
Analysts upgraded JKHY 1 time in the last 30 days with no downgrades; the latest action was an upgrade by Piper Sandler on 9 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Information Technology Services
The 12 companies below are the closest to Jack Henry & Associates, Inc. by market cap within the Information Technology Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| IT Gartner, Inc. | 207.19 | 382.44 | +46% | 88Prime | $13.1B |
| WSE Wise plc | 11.58 | 37.63 | +69% | 78Good | $11.6B |
| CACI CACI International Inc | 632.16 | 904.89 | +30% | 51Fair | $14.0B |
| GIB CGI Inc. | 82.26 | 123.11 | +33% | 50Fair | $15.0B |
| FIS Fidelity National Information Services, Inc. | 29.76 | 81.90 | +64% | 52Fair | $15.3B |
| LDOS Leidos Holdings, Inc. | 135.68 | 220.25 | +38% | 54Fair | $17.0B |
| CDW CDW Corporation | 168.75 | 130.29 | -30% | 43Weak | $21.1B |
| WIT Wipro Limited | 2.16 | 2.42 | +11% | 42Weak | $21.4B |
| BR Broadridge Financial Solutions, Inc. | 189.29 | 184.86 | -2% | 41Weak | $21.4B |
| EPAM EPAM Systems, Inc. | 137.36 | 132.81 | -3% | 45Weak | $7.1B |
| G Genpact Limited | 40.78 | 69.18 | +41% | 87Prime | $6.9B |
| EXLS ExlService Holdings, Inc. | 43.12 | 44.55 | +3% | 70Good | $6.5B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about JKHY
Is JKHY undervalued right now?
No: at 179.16 the stock trades 21% above the GLS average fair value of 147.80 (data as of 5 Nov 2026). The margin of safety is negative.
What is the Wheel Score of JKHY and what does it mean?
JKHY scores 39 out of 100 (Weak) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for JKHY?
147.80 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Jack Henry & Associates, Inc. report earnings next?
The next earnings report is due on 2 Feb 2027, 89 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does JKHY have listed options, and how liquid are they?
Yes. The nightly snapshot found 90 listed contracts with 1,379 open interest across all expiries and implied volatility of 31% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.