Jack Henry & AssociatesFRA:JHY -1.28%89 Gross Margin % is 42.80% as of Mar. 2026, which is 3% above its 10-year median of 41.63. GuruFocus rates FRA:JHY with a GF Score™ of 89/100 and a GF Value™ of €169.68 (Modestly Undervalued). Among 2,676 Software companies, Jack Henry & Associates ranks better than 53.96% on this metric.
FRA:JHY's Gross Margin % is ranked better than 53.96% of 2676
companies
in the Software industry
Industry Median: 40.5
vs FRA:JHY: 44.06
Jack Henry & Associates had a gross margin of 42.80% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Jack Henry & Associates was 1.10% per year.
Jack Henry & Associates (FRA:JHY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Jack Henry & Associates had a gross margin of 42.80% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Jack Henry & Associates Gross Margin % Related Terms
Jack Henry & Associates Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:JHY vs CACI, IT, CIFR: Gross Margin % Comparison
For the Information Technology Services subindustry, Jack Henry & Associates's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Jack Henry & Associates Gross Margin % vs Software Industry
For the Software industry and Technology sector, Jack Henry & Associates's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Jack Henry & Associates's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Jack Henry & Associates (FRA:JHY) has a Gross Margin % of 42.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Jack Henry & Associates and its competitors. This is near median its historical median of 41.63. Over the past decade, Jack Henry & Associates' Gross Margin % has ranged from 39.52 to 44.06. According to the industry distribution chart, Jack Henry & Associates ranks #1232 out of 2676 companies in the Software industry, placing it in the top 46%.
Is Jack Henry & Associates' Gross Margin % too high?
Jack Henry & Associates' current Gross Margin % of 42.80% is near median its 10-year median of 41.63. Over the past 10 years, this metric has ranged from a low of 39.52 to a high of 44.06. The Software industry median Gross Margin % is 40.50. Jack Henry & Associates' value of 42.80% is 5.7% above this industry median. Based on the distribution chart, Jack Henry & Associates ranks #1232 out of 2676 companies in the Software industry, which is above the industry midpoint. Overall, Jack Henry & Associates has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jack Henry & Associates' Gross Margin % compare to CACI and IT?
According to the Software industry distribution chart, Jack Henry & Associates ranks #1232 out of 2676 companies for Gross Margin %. This puts Jack Henry & Associates in the upper half of its industry. The industry median Gross Margin % is 40.50. Jack Henry & Associates' value of 42.80% is 5.7% above this benchmark. Historically, Jack Henry & Associates' own Gross Margin % has ranged from 39.52 to 44.06 over the past decade. While the company's 10-year median is 41.63 vs. the industry median of 40.50, Jack Henry & Associates has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.50, based on 2,676 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jack Henry & Associates's current Gross Margin % of 42.80% is 5.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Jack Henry & Associates and its competitors. For the Software industry, the median Gross Margin % is 40.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jack Henry & Associates's current Gross Margin % is 42.80%, which is near median its own 10-year median of 41.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jack Henry & Associates stock overvalued right now?
Based on GuruFocus' analysis, Jack Henry & Associates (FRA:JHY) is currently considered Modestly Undervalued. The stock's GF Value™ is €169.68, compared to a current price of €126.85 — trading 25.2% below its estimated fair value. The current Gross Margin % is 42.80%, which is near median its 10-year median of 41.63 and 5.7% above the Software industry median of 40.50. Jack Henry & Associates' overall GF Score™ is 89/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Jack Henry & Associates (FRA:JHY), the current Gross Margin % is 42.80% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Jack Henry & Associates (FRA:JHY) Overvalued in 2026?
Based on GuruFocus' analysis, Jack Henry & Associates stock appears to be undervalued.
The current stock price of €126.85 is trading 25.2% below its estimated GF Value™ of €169.68.
GuruFocus considers Jack Henry & Associates to be Modestly Undervalued.
Key valuation signals for FRA:JHY:
Gross Margin %: 42.80% (near median its 10-year median of 41.63)
GF Value™: €169.68 vs. price of €126.85 (25.2% below fair value)
Industry Position: 5.7% above the Software median (#1232 of 2676)
No single metric tells the full story. See the FRA:JHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jack Henry is a leading provider of core processing and complementary services, including electronic funds transfer, payment processing, and loan processing, for US banks and credit unions, with a focus on small and midsize banks. Jack Henry serves almost 1,000 banks and over 700 credit unions.
89GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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