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
An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:HRB has received a 7 out of 10:
- Compared to an average industry Dividend Yield of 29.65, HRB pays a better dividend. On top of this HRB pays more dividend than 95.24% of the companies listed 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.
- 37.85% of the earnings are spent on dividend by HRB. This is a low number and sustainable payout ratio.
- The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.
Health Examination for NYSE:HRB
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:
- An Altman-Z score of 2.99 indicates that HRB is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HRB (2.99) is better than 79.37% of its industry peers.
- 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.
- With a decent Debt to FCF ratio value of 2.20, HRB is doing good in the industry, outperforming 79.37% of the companies in the same industry.
A Closer Look at Profitability for NYSE:HRB
Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:HRB has achieved a 6:
- HRB has a better Return On Assets (14.74%) than 92.06% of its industry peers.
- HRB has a better Return On Invested Capital (26.01%) than 93.65% 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 15.48%.
- HRB has a Profit Margin of 12.58%. This is amongst the best in the industry. HRB outperforms 87.30% of its industry peers.
- Looking at the Operating Margin, with a value of 16.60%, HRB belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
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Keep in mind
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.