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.

Understanding NYSE:HRB's Dividend Score

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:

• Compared to an average industry Dividend Yield of 26.64, HRB pays a better dividend. On top of this HRB pays more dividend than 95.16% 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 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 Analysis 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:

• HRB has an Altman-Z score of 3.08. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
• HRB's Altman-Z score of 3.08 is amongst the best of the industry. HRB outperforms 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.
• HRB's Debt to FCF ratio of 2.20 is fine compared to the rest of the industry. HRB outperforms 79.03% of its industry peers.

Profitability Insights: NYSE:HRB

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HRB scores a 6 out of 10:

• The Return On Assets of HRB (14.74%) is better than 91.94% of its industry peers.
• With an excellent Return On Invested Capital value of 26.01%, HRB belongs to the best of the industry, outperforming 93.55% 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 15.48%.
• With an excellent Profit Margin value of 12.58%, HRB belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 16.60%, HRB belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.

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Our latest full fundamental report of HRB contains the most current fundamental analsysis.

Disclaimer

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.