Jack Henry & AssociatesFRA:JHY +3.22%89 Interest Coverage is 112.80 as of Mar. 2026, which is 49% below its 10-year median of 219.19. GuruFocus rates FRA:JHY with a GF Score™ of 89/100 and a GF Value™ of €171.35 (Modestly Undervalued). Among 1,703 Software companies, Jack Henry & Associates ranks better than 69.82% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Jack Henry & Associates's
Operating Income
for the
three
months ended in Mar. 2026 was €134 Mil. Jack Henry & Associates's Interest Expense for the
three
months ended in Mar. 2026 was €-1 Mil.
Jack Henry & Associates's interest coverage for the quarter that ended in Mar. 2026 was 112.80.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Jack Henry & Associates's Interest Coverage or its related term are showing as below:
FRA:JHY'
s Interest Coverage Range Over the Past 10 Years
Min: 29.87 Med: 219.19 Max: 553.24
Current: 118.79
FRA:JHY's Interest Coverage is ranked better than 69.82% of 1703
companies
in the Software industry
Industry Median: 24.78
vs FRA:JHY: 118.79
Jack Henry & Associates (FRA:JHY) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Jack Henry & Associates Interest Coverage Related Terms
Jack Henry & Associates Interest Coverage Historical Data
* Premium members only.
The historical data trend for Jack Henry & Associates's Interest Coverage can be seen below:
* 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:JHY vs CACI, IT, CIFR: Interest Coverage Comparison
For the Information Technology Services subindustry, Jack Henry & Associates's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Jack Henry & Associates's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Jack Henry & Associates's Interest Coverage falls into.
Jack Henry & Associates Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Jack Henry & Associates (FRA:JHY) has a Interest Coverage of 112.80 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Jack Henry & Associates and its competitors. This is 49% below median its historical median of 219.19. Over the past decade, Jack Henry & Associates' Interest Coverage has ranged from 29.87 to 553.24. According to the industry distribution chart, Jack Henry & Associates ranks #514 out of 1703 companies in the Software industry, placing it in the top 30.2%.
Is Jack Henry & Associates' Interest Coverage too high?
Jack Henry & Associates' current Interest Coverage of 112.80 is 49% below median its 10-year median of 219.19. Over the past 10 years, this metric has ranged from a low of 29.87 to a high of 553.24. The Software industry median Interest Coverage is 24.78. Jack Henry & Associates' value of 112.80 is 355.2% above this industry median. Based on the distribution chart, Jack Henry & Associates ranks #514 out of 1703 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' Interest Coverage compare to CACI and IT?
According to the Software industry distribution chart, Jack Henry & Associates ranks #514 out of 1703 companies for Interest Coverage. This puts Jack Henry & Associates in the upper half of its industry. The industry median Interest Coverage is 24.78. Jack Henry & Associates' value of 112.80 is 355.2% above this benchmark. Historically, Jack Henry & Associates' own Interest Coverage has ranged from 29.87 to 553.24 over the past decade. While the company's 10-year median is 219.19 vs. the industry median of 24.78, 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.78, based on 1,703 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jack Henry & Associates's current Interest Coverage of 112.80 is 355.2% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Jack Henry & Associates and its competitors. For the Software industry, the median Interest Coverage is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jack Henry & Associates's current Interest Coverage is 112.80, which is 49% below median its own 10-year median of 219.19. 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 €171.35, compared to a current price of €128.30 — trading 25.1% below its estimated fair value. The current Interest Coverage is 112.80, which is 49% below median its 10-year median of 219.19 and 355.2% above the Software industry median of 24.78. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Jack Henry & Associates (FRA:JHY), the current Interest Coverage is 112.80 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 €128.30 is trading 25.1% below its estimated GF Value™ of €171.35.
GuruFocus considers Jack Henry & Associates to be Modestly Undervalued.
Key valuation signals for FRA:JHY:
Interest Coverage: 112.80 (49% below median its 10-year median of 219.19)
GF Value™: €171.35 vs. price of €128.30 (25.1% below fair value)
Industry Position: 355.2% above the Software median (#514 of 1703)
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
Get the complete analysis for FRA:JHY
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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