Jack Henry & AssociatesFRA:JHY +0.91%88 Pretax Margin % is 24.92% as of Mar. 2026, which is 6% above its 10-year median of 23.53. GuruFocus rates FRA:JHY with a GF Score™ of 88/100 and a GF Value™ of €170.52 (Modestly Undervalued). Among 2,817 Software companies, Jack Henry & Associates ranks better than 92.01% on this metric.
The historical rank and industry rank for Jack Henry & Associates's Pretax Margin % or its related term are showing as below:
FRA:JHY'
s Pretax Margin % Range Over the Past 10 Years
Min: 22.36 Med: 23.53 Max: 26.75
Current: 26.75
FRA:JHY's Pretax Margin % is ranked better than 92.01% of 2817
companies
in the Software industry
Industry Median: 3.57
vs FRA:JHY: 26.75
Jack Henry & Associates (FRA:JHY) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Jack Henry & Associates Pretax Margin % Related Terms
Jack Henry & Associates Pretax 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: Pretax Margin % Comparison
For the Information Technology Services subindustry, Jack Henry & Associates's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Jack Henry & Associates's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Jack Henry & Associates's Pretax 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.
Jack Henry & Associates (FRA:JHY) has a Pretax Margin % of 24.92% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Jack Henry & Associates and its competitors. This is near median its historical median of 23.53. Over the past decade, Jack Henry & Associates' Pretax Margin % has ranged from 22.36 to 26.75. According to the industry distribution chart, Jack Henry & Associates ranks #225 out of 2817 companies in the Software industry, placing it in the top 8%.
Is Jack Henry & Associates' Pretax Margin % too high?
Jack Henry & Associates' current Pretax Margin % of 24.92% is near median its 10-year median of 23.53. Over the past 10 years, this metric has ranged from a low of 22.36 to a high of 26.75. The Software industry median Pretax Margin % is 3.57. Jack Henry & Associates' value of 24.92% is 598% above this industry median. Based on the distribution chart, Jack Henry & Associates ranks #225 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Jack Henry & Associates has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jack Henry & Associates' Pretax Margin % compare to CACI and IT?
According to the Software industry distribution chart, Jack Henry & Associates ranks #225 out of 2817 companies for Pretax Margin %. This places Jack Henry & Associates in the top 8% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.57. Jack Henry & Associates' value of 24.92% is 598% above this benchmark. Historically, Jack Henry & Associates' own Pretax Margin % has ranged from 22.36 to 26.75 over the past decade. While the company's 10-year median is 23.53 vs. the industry median of 3.57, 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.57, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jack Henry & Associates's current Pretax Margin % of 24.92% is 598% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Jack Henry & Associates and its competitors. For the Software industry, the median Pretax Margin % is 3.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jack Henry & Associates's current Pretax Margin % is 24.92%, which is near median its own 10-year median of 23.53. 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 €170.52, compared to a current price of €128.00 — trading 24.9% below its estimated fair value. The current Pretax Margin % is 24.92%, which is near median its 10-year median of 23.53 and 598% above the Software industry median of 3.57. Jack Henry & Associates' overall GF Score™ is 88/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Jack Henry & Associates (FRA:JHY), the current Pretax Margin % is 24.92% 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 €128.00 is trading 24.9% below its estimated GF Value™ of €170.52.
GuruFocus considers Jack Henry & Associates to be Modestly Undervalued.
Key valuation signals for FRA:JHY:
Pretax Margin %: 24.92% (near median its 10-year median of 23.53)
GF Value™: €170.52 vs. price of €128.00 (24.9% below fair value)
Industry Position: 598% above the Software median (#225 of 2817)
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.
88GF Score
Get the complete analysis for FRA:JHY
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:JHY has been successfully added to your 
