Balancing Dividends and Fundamentals: The Case of NYSE:HRB.

H&R BLOCK INC (NYSE:HRB) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:HRB demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Dividend Assessment of NYSE:HRB

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:HRB has been awarded a 7 for its dividend quality:

• Compared to an average industry Dividend Yield of 16.78, HRB pays a better dividend. On top of this HRB pays more dividend than 95.31% of the companies listed 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 their dividend for at least 10 years, which is a reliable track record.
• HRB pays out 30.36% 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.

How We Gauge Health for NYSE:HRB

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:HRB, the assigned 5 reflects its health status:

• The Altman-Z score of HRB (2.95) is better than 73.44% of its industry peers.
• The Debt to FCF ratio of HRB is 3.82, which is a good value as it means it would take HRB, 3.82 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of HRB (3.82) is better than 75.00% of its industry peers.

Profitability Analysis for NYSE:HRB

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HRB, the assigned 7 is a significant indicator of profitability:

• HRB's Return On Assets of 21.18% is amongst the best of the industry. HRB outperforms 95.31% of its industry peers.
• With an excellent Return On Invested Capital value of 30.99%, HRB belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
• HRB had an Average Return On Invested Capital over the past 3 years of 27.02%. This is significantly above the industry average of 15.14%.
• The 3 year average ROIC (27.02%) for HRB is below the current ROIC(30.99%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 16.86%, HRB belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 21.99%, HRB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.