In a market where value is scarce, NYSE:HRB offers a refreshing opportunity with its solid fundamentals.

Our stock screener has singled out H&R BLOCK INC (NYSE:HRB) as a stellar value proposition. NYSE:HRB not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Evaluating Valuation: NYSE:HRB

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:HRB scores a 8 out of 10:

• A Price/Earnings ratio of 10.92 indicates a reasonable valuation of HRB.
• Based on the Price/Earnings ratio, HRB is valued cheaper than 89.06% of the companies in the same industry.
• When comparing the Price/Earnings ratio of HRB to the average of the S&P500 Index (28.40), we can say HRB is valued rather cheaply.
• The Price/Forward Earnings ratio is 10.80, which indicates a very decent valuation of HRB.
• HRB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 82.81% of the companies in the same industry.
• HRB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.03.
• Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than 67.19% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 85.94% of the companies listed in the same industry.
• HRB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• HRB has a very decent profitability rating, which may justify a higher PE ratio.

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 6 out of 10:

• HRB's Return On Assets of 14.74% is amongst the best of the industry. HRB outperforms 92.19% of its industry peers.
• HRB has a better Return On Invested Capital (26.01%) than 93.75% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 15.18%.
• The Profit Margin of HRB (12.58%) is better than 87.50% of its industry peers.
• HRB has a Operating Margin of 16.60%. This is amongst the best in the industry. HRB outperforms 81.25% of its industry peers.

Deciphering NYSE:HRB's Health Rating

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 6 out of 10:

• HRB has an Altman-Z score of 3.01. 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 3.01, HRB is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
• HRB has a debt to FCF ratio of 2.20. This is a good value and a sign of high solvency as HRB would need 2.20 years to pay back of all of its debts.
• HRB has a better Debt to FCF ratio (2.20) than 81.25% of its industry peers.

Assessing Growth Metrics for NYSE:HRB

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:HRB has achieved a 5 out of 10:

• HRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.81%, which is quite impressive.
• Based on estimates for the next years, HRB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.80% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

This article should in no way be interpreted as advice. 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.