Jack Henry & AssociatesFRA:JHY +0.29%89 ROA % is 16.19% as of Mar. 2026, which is 20% above its 10-year median of 13.52. GuruFocus rates FRA:JHY with a GF Score™ of 89/100 and a GF Value™ of €165.26 (Modestly Undervalued). Among 2,883 Software companies, Jack Henry & Associates ranks better than 93.69% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Jack Henry & Associates's annualizedNet Income for the quarter that ended in Mar. 2026 was €425 Mil.
Jack Henry & Associates's average Total Assets over the quarter that ended in Mar. 2026 was €2,626 Mil. Therefore, Jack Henry & Associates's annualized ROA % for the quarter that ended in Mar. 2026 was 16.19%.
The historical rank and industry rank for Jack Henry & Associates's ROA % or its related term are showing as below:
FRA:JHY'
s ROA % Range Over the Past 10 Years
Min: 12.33 Med: 13.52 Max: 18.52
Current: 17.15
During the past 13 years, Jack Henry & Associates's highest ROA % was 18.52%. The lowest was 12.33%. And the median was 13.52%.
FRA:JHY's ROA % is ranked better than 93.69% of 2883
companies
in the Software industry
Industry Median: 1.65
vs FRA:JHY: 17.15
Jack Henry & Associates (FRA:JHY) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Information Technology Services subindustry, Jack Henry & Associates's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Software Industry
For the Software industry and Technology sector, Jack Henry & Associates's ROA % distribution charts can be found below:
* The bar in red indicates where Jack Henry & Associates's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Jack Henry & Associates (FRA:JHY) has a ROA % of 16.19% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Jack Henry & Associates and its competitors. This is 20% above median its historical median of 13.52. Over the past decade, Jack Henry & Associates' ROA % has ranged from 12.33 to 18.52. According to the industry distribution chart, Jack Henry & Associates ranks #182 out of 2883 companies in the Software industry, placing it in the top 6.3%.
Is Jack Henry & Associates' ROA % too high?
Jack Henry & Associates' current ROA % of 16.19% is 20% above median its 10-year median of 13.52. Over the past 10 years, this metric has ranged from a low of 12.33 to a high of 18.52. The Software industry median ROA % is 1.65. Jack Henry & Associates' value of 16.19% is 881.2% above this industry median. Based on the distribution chart, Jack Henry & Associates ranks #182 out of 2883 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 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jack Henry & Associates' ROA % compare to CACI and IT?
According to the Software industry distribution chart, Jack Henry & Associates ranks #182 out of 2883 companies for ROA %. This places Jack Henry & Associates in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 1.65. Jack Henry & Associates' value of 16.19% is 881.2% above this benchmark. Historically, Jack Henry & Associates' own ROA % has ranged from 12.33 to 18.52 over the past decade. While the company's 10-year median is 13.52 vs. the industry median of 1.65, 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 ROA % for a Software company?
The median ROA % among Software companies is 1.65, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jack Henry & Associates's current ROA % of 16.19% is 881.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Jack Henry & Associates and its competitors. For the Software industry, the median ROA % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jack Henry & Associates's current ROA % is 16.19%, which is 20% above median its own 10-year median of 13.52. 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 €165.26, compared to a current price of €120.05 — trading 27.4% below its estimated fair value. The current ROA % is 16.19%, which is 20% above median its 10-year median of 13.52 and 881.2% above the Software industry median of 1.65. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Jack Henry & Associates (FRA:JHY), the current ROA % is 16.19% 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 €120.05 is trading 27.4% below its estimated GF Value™ of €165.26.
GuruFocus considers Jack Henry & Associates to be Modestly Undervalued.
Key valuation signals for FRA:JHY:
ROA %: 16.19% (20% above median its 10-year median of 13.52)
GF Value™: €165.26 vs. price of €120.05 (27.4% below fair value)
Industry Position: 881.2% above the Software median (#182 of 2883)
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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