Jack Henry & Associates - AI Stock Analysis

Analysis generated October 6, 2025

Jack Henry Associates (JHA) is a prominent provider of technology solutions and payment processing services primarily for the financial services industry. The company, founded in 1976, has earned a strong reputation for delivering robust and reliable software and services to community banks, credit unions, and other financial institutions. Jack Henry Associates focuses on offering integrated technology, payment processing, and information security solutions to meet the evolving needs of its clients.

Fundamental Analysis

The financial performance of Jack Henry Associates demonstrates its strong operational efficiency and robust growth trends. For the last quarter, the company reported revenue of $615 million, marking a 5.18% increase from the previous quarter and a notable 9.91% rise year over year. These figures reflect a positive momentum in the company's sales trajectory. Additionally, the net income for the last quarter was $128 million, which is a significant 14.85% increase from the previous quarter and a 26.25% rise year over year, underscoring strong profitability.

Moreover, the company's EBITDA for the last quarter was $214 million, up 9.14% from the previous quarter and 15.45% year over year. These growth rates indicate that Jack Henry Associates has been effective in managing its operational costs and enhancing profitability. The current Price-to-Earnings (P/E) ratio stands at 23.48, which suggests that the stock is fairly valued relative to its earnings. This ratio neither signals an overvaluation nor an undervaluation but should be considered in the context of the broader market and industry trends.

Technical Analysis

From a technical standpoint, the recent performance of Jack Henry Associates' stock has been bearish. Today's stock price is $146.04, reflecting a 9.99% decrease compared to the previous month and a 17.71% decrease compared to a year ago. These declines might raise concerns among investors, especially those focused on short-term capital gains. The 10-day Simple Moving Average (SMA10) is currently 147.63, slightly lower than the previous SMA10 of 147.96, indicating a potential downtrend in the near future.

The Relative Strength Index (RSI) stands at 78.1, which typically suggests an overbought condition, signaling that the stock may be overvalued in the short term and prone to a downward correction. Therefore, technical indicators suggest caution for those considering a quick entry or exit from the stock.

Alternative Data Analysis

The alternative data for Jack Henry Associates presents a mixed outlook. On the positive side, the company has 72 open positions listed on popular job boards, a 53% increase over the last couple of months. This indicates robust hiring activity and a potential for future growth and expansion. Employee sentiment remains neutral, providing no significant insights one way or the other regarding internal morale or business outlook.

However, web traffic was estimated at 300,000 visitors to the company's webpage, which is down by 6% in the last couple of months. This could be a concern as it may signal a decline in customer engagement or acquisition. Furthermore, Jack Henry Associates has 3,200 followers on its Twitter page, with no significant change recently, indicating steady but stagnant customer interaction on social media platforms.

Adding another layer of analysis, AltIndex's AI score, which incorporates a multitude of fundamental, technical, and alternative data points, assigns Jack Henry Associates a score of 73. This score is generally considered a buy signal, indicating that the aggregate data points towards a favorable investment option.

Conclusion

Jack Henry Associates shows solid financial health with positive year-over-year revenue, net income, and EBITDA growth. Despite some technical concerns indicating a potential downtrend and overbought conditions, alternative data highlights robust hiring with a neutral employee outlook, coupled with some concerns over web traffic and social media engagement.

Based on the fundamental strength and the positive AltIndex AI score, Jack Henry Associates appears to be a good investment option, especially for those with a mid- to long-term perspective. The recommendation leans towards a "Buy," given the company's solid financial foundation and growth potential, even though short-term technical indicators suggest caution.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.