Our stock screening tool has identified H&R BLOCK INC (NYSE:HRB) as a strong dividend contender with robust fundamentals. NYSE:HRB exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.
Dividend Analysis for NYSE:HRB
ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:HRB earns a 7 out of 10:
HRB's Dividend Yield is rather good when compared to the industry average which is at 33.29. HRB pays more dividend than 95.31% of the companies in the same industry.
HRB has paid a dividend for at least 10 years, which is 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 30.36% of its income as dividend. This is a sustainable payout ratio.
The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.
Evaluating Health: NYSE:HRB
A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HRB has received a 5 out of 10:
HRB's Altman-Z score of 2.94 is fine compared to the rest of the industry. HRB outperforms 75.00% 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.
Looking at the Debt to FCF ratio, with a value of 3.82, HRB is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
Looking at the Profitability
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 21.18%. This is amongst the best in the industry. HRB outperforms 95.31% of its industry peers.
HRB has a better Return On Invested Capital (30.99%) than 95.31% of its industry peers.
HRB had an Average Return On Invested Capital over the past 3 years of 27.02%. This is significantly above the industry average of 14.93%.
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.
The Operating Margin of HRB (21.99%) is better than 87.50% of its industry peers.
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.