Jack Henry & Associates

Methodology

Jack Henry's core banking software for community and regional banks generates highly predictable earnings from long-term contracts and recurring maintenance revenue. The company's entrenched position in bank operations creates strong customer retention. This calculation works very well given the sticky nature of core processing systems and visible recurring revenue streams driving consistent earnings growth.

Methodology

Jack Henry typically commands premium PEG ratios reflecting its recurring revenue model, customer retention, and defensive characteristics serving community banks. The company's steady execution and limited competition in the mid-tier bank market justify higher multiples. Compare to other banking technology providers to assess whether Jack Henry's community bank focus and retention rates warrant its valuation premium.

Methodology

Jack Henry pays a meaningful dividend with long growth history reflecting consistent cash generation from banking software subscriptions. The company balances dividends with investments in cloud migration and payments capabilities. PEGY is relevant given the reliable dividend growth, though the primary appeal remains predictable earnings compounding from essential banking infrastructure software.