Jack Henry Finishes Its Fiscal Year on a Solid Note

Jack Henry ended its fiscal year on a solid note and enjoyed relatively strong growth this year. The company’s full-year results were roughly in line with our expectations, although earnings per share guidance for fiscal 2023 was a bit below our assumptions, suggesting the margin improvement Jack Henry saw this year might stall in the near term. We will maintain our $167 fair value estimate for the wide-moat company. We see the shares as modestly overvalued and think the market might be willing to pay a bit of a premium at the moment for such a highly resilient company given current macro uncertainties.