JKHY Stock Analysis — Jack Henry & Associates
Sector: Financial Software
AI Verdict
JKHY is cheap for the growth on offer at 17.3x forward earnings, but the overbought RSI and recent negative return make a near-term pullback likely unless its sticky banking software moat delivers fresh wins.
Competitive Moat
Jack Henry & Associates provides core banking software to regional and community banks, embedding itself deeply in clients' operations and making switching costly and risky. Its defensibility comes from high integration and compliance requirements, which create long-term client stickiness rather than any proprietary AI or data advantage.
Summary
JKHY is flashing an overbought RSI of 81.6 despite a -16.94% one-year return, as the forward P/E drops to 17.3x on 17.4% expected EPS growth.
Where It Stands
The stock trades at 17.3x next year's earnings, below the software sector median of 35x, but its RSI of 81.6 signals it is extremely overbought even after a -16.94% one-year return.
Key Metrics
- RSI: 81.6 — Overbought
- Trailing P/E: 20.3x
- Forward P/E: 17.3x
- PEG Ratio: 0.98
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $10.3B
- Dividend Yield: 0.02%
- 1-Year Return: -16.94%
- 52-Week High: $193.39
- 52-Week Low: $121.04
Analyst Consensus
15 Buy · 5 Hold · 1 Sell (21 analysts)
Bull Case
You’re paying 17.3x forward earnings for 17.4% expected EPS growth, which is cheap for a software company if its client retention moat holds up.
Bear Case
With an RSI of 81.6, even a modest pullback to a neutral RSI could mean a 10–15% drop from current levels, erasing any short-term gains.
Catalyst to Watch
Watch for upcoming client renewal cycles or contract wins—if retention or new signings disappoint, the low P/E won’t protect against a sharp correction.