Morningstar Rating

Stock Research and Analysis

by Brett Horn

Bulls Say

Recurring revenue insulates Jack Henry from any problems in the banking sector.
With a strong balance sheet, Jack Henry has the financial flexibility to pursue acquisitions at attractive prices.
The ongoing shift toward the support and service segment and away from license sales bolsters the stability of the business, and a larger portion of recurring revenue enhances the company's long-term value. Read more 

Bears Say

Consolidation in the banking industry could create more banks large enough to bring their core processing in house.
Jack Henry increasingly looks like a small fish in its industry, which could force more acquisition activity.
Jack Henry's small size makes it more likely that it could have to play catch-up with its peers when it comes to new product innovation. Read more 

Management

John Prim took over as CEO in 2004, replacing Michael Henry, the son of one of the company's founders. Although the board looks to be dominated by insiders, we like that many of the independent directors on the board have significant banking experience.  Read more 

Profile

Jack Henry is one of the leading providers of core processing systems to domestic banks and credit unions. The company also provides ancillary products, such as Internet   Read more 

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