NYSE:HRB is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Nov 30, 2023

Our stock screening tool has identified H&R BLOCK INC (NYSE:HRB) as an undervalued gem with strong fundamentals. NYSE:HRB boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Valuation Insights: NYSE:HRB

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:HRB has earned a 8 for valuation:

HRB is valuated reasonably with a Price/Earnings ratio of 11.88.
HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 86.57% of the companies in the same industry.
HRB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.54.
A Price/Forward Earnings ratio of 9.75 indicates a reasonable valuation of HRB.
HRB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 89.55% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.65. HRB is valued rather cheaply when compared to this.
HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 77.61% of the companies in the same industry.
89.55% of the companies in the same industry are more expensive than HRB, based on the Price/Free Cash Flow ratio.
HRB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HRB's earnings are expected to grow with 12.54% in the coming years.

Profitability Insights: NYSE:HRB

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:HRB has earned a 7 out of 10:

HRB has a better Return On Assets (22.16%) than 95.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 35.88%, HRB belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 9.33%.
The 3 year average ROIC (27.02%) for HRB is below the current ROIC(35.88%), indicating increased profibility in the last year.
HRB has a better Profit Margin (16.01%) than 94.03% of its industry peers.
With an excellent Operating Margin value of 21.62%, HRB belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.

Analyzing Health Metrics

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HRB has earned a 5 out of 10:

HRB has an Altman-Z score of 3.47. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.47, HRB belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
The Debt to FCF ratio of HRB is 2.01, which is a good value as it means it would take HRB, 2.01 years of fcf income to pay off all of its debts.
HRB has a Debt to FCF ratio of 2.01. This is amongst the best in the industry. HRB outperforms 83.58% of its industry peers.

Growth Examination for NYSE:HRB

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:HRB scores a 5 out of 10:

HRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.50%, which is quite good.
Based on estimates for the next years, HRB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.54% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of HRB for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.