MeritValue

JACK HENRY & ASSOCIATES INC

JKHYdata completeness 100%17 fiscal years on file
The thesis, from the filings

JACK HENRY & ASSOCIATES INC earns about 22% on invested capital, far above its ~9% cost of capital, and has bought back 3% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $52.02 and $123.39 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.76B1$1.94B2$2.08B3$2.22B3$2.38B3
Net income$311.5M4$362.9M5$366.6M6$381.8M6$455.7M6
Operating cash flow$462.1M7$504.6M8$381.6M9$568M9$641.5M9
Capital expenditure$23M10$34.7M11$39.2M12$58.1M12$53.4M12
Free cash flow (derived)$439.1M7$470M8$342.4M9$509.9M9$588.1M9
Total debt—$115M13$550M14$210M15$015
Cash & equivalents$51M16$48.8M17$12.2M17$38.3M17$102M17
Diluted shares75.7M73.5M73.1M73.0M73.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$291.71
your share of equity
Profit it earned you last year
$62.39
Free cash flow it threw off
$80.52
Debt you’d be carrying
$0

10 shares is a claim on $291.71 of net worth that earned you $62.39 and generated $80.52 of cash last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
22% avg · 5y
FY21 25%FY22 25%FY23 18%FY24 19%FY25 23%

It earned about 22% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−3% shares · 5y

Share count is down 3% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $52.02 and $123.39 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$123.39
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth3.7%
  • fcfBase$509.9M
DCF · Growth Exit 5Y
$118.68
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth3.7%
  • fcfBase$509.9M
Earnings Power Value
$52.02
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$366.6M
  • growthAssumed0.0%
Graham Number
$64
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years3.7%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $118.68
The three cases
Bear0.0%$101.14
Base3.7%$118.68
Bull8.7%$146.29

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 3.7%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-06-30 · accession 0000779152-23-000062 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0000779152-24-000079 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0000779152-25-000055 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-06-30 · accession 0000779152-23-000062 (NetIncomeLoss)
  5. 10-K · period ending 2022-06-30 · accession 0000779152-24-000079 (NetIncomeLoss)
  6. 10-K · period ending 2023-06-30 · accession 0000779152-25-000055 (NetIncomeLoss)
  7. 10-K · period ending 2021-06-30 · accession 0000779152-23-000062 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-06-30 · accession 0000779152-24-000079 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-06-30 · accession 0000779152-25-000055 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-06-30 · accession 0000779152-23-000062 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-06-30 · accession 0000779152-24-000079 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-06-30 · accession 0000779152-25-000055 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-06-30 · accession 0000779152-23-000062 (LongTermDebt)
  14. 10-K · period ending 2023-06-30 · accession 0000779152-24-000079 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-06-30 · accession 0000779152-25-000055 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2021-06-30 · accession 0000779152-21-000073 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2022-06-30 · accession 0000779152-25-000055 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)