Discover H&R BLOCK INC (NYSE:HRB)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:HRB showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.
How We Gauge Dividend for NYSE:HRB
ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:HRB scores a 7 out of 10:
HRB's Dividend Yield is rather good when compared to the industry average which is at 2.42. HRB pays more dividend than 98.41% of the companies in the same industry.
HRB has been paying a dividend for at least 10 years, so it has a reliable track record.
HRB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
HRB pays out 31.96% of its income as dividend. This is a sustainable payout ratio.
HRB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
Unpacking NYSE:HRB's Health Rating
ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:HRB was assigned a score of 5 for health:
An Altman-Z score of 3.53 indicates that HRB is not in any danger for bankruptcy at the moment.
HRB has a better Altman-Z score (3.53) than 80.95% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.01, HRB belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
Profitability Analysis for 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 Return On Assets of 22.16%. This is amongst the best in the industry. HRB outperforms 96.83% of its industry peers.
HRB's Return On Invested Capital of 35.88% is amongst the best of the industry. HRB outperforms 98.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 9.48%.
The 3 year average ROIC (27.02%) for HRB is below the current ROIC(35.88%), indicating increased profibility in the last year.
The Profit Margin of HRB (16.01%) is better than 95.24% of its industry peers.
With an excellent Operating Margin value of 21.62%, HRB belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.