NYSE:HRB: good value for what you're paying.

Last update: Jul 9, 2024

H&R BLOCK INC (NYSE:HRB) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:HRB showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Analysis for NYSE:HRB

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:HRB boasts a 8 out of 10:

A Price/Earnings ratio of 11.47 indicates a reasonable valuation of HRB.
HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 83.87% of the companies in the same industry.
HRB is valuated cheaply when we compare the Price/Earnings ratio to 28.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.34, the valuation of HRB can be described as reasonable.
Based on the Price/Forward Earnings ratio, HRB is valued cheaper than 83.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HRB to the average of the S&P500 Index (20.21), we can say HRB is valued slightly cheaper.
HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 67.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HRB may justify a higher PE ratio.

Profitability Insights: NYSE:HRB

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:HRB was assigned a score of 6 for profitability:

With an excellent Return On Assets value of 14.74%, HRB belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 26.01%, HRB belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRB 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 87.10% of its industry peers.
With an excellent Operating Margin value of 16.60%, HRB belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.

A Closer Look at Health 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 3.08 indicates that HRB is not in any danger for bankruptcy at the moment.
HRB has a better Altman-Z score (3.08) than 80.65% 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 79.03% of the companies in the same industry.

Growth Examination for NYSE:HRB

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:HRB boasts a 5 out of 10:

The Earnings Per Share has grown by an impressive 42.81% over the past year.
The Earnings Per Share is expected to grow by 8.80% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of HRB

Keep in mind

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.