Analyzing NYSE:HRB's Dividend Potential.

Last update: Jul 31, 2024

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 Analysis for NYSE:HRB

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:HRB has achieved a 7 out of 10:

Compared to an average industry Dividend Yield of 27.58, 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 their dividend for at least 10 years, which is a reliable track record.
HRB pays out 37.85% 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

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:HRB, the assigned 5 for health provides valuable insights:

An Altman-Z score of 3.19 indicates that HRB is not in any danger for bankruptcy at the moment.
HRB has a better Altman-Z score (3.19) than 82.54% 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.
The Debt to FCF ratio of HRB (2.20) is better than 79.37% of its industry peers.

Evaluating Profitability: 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:

With an excellent Return On Assets value of 14.74%, HRB belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
HRB has a Return On Invested Capital of 26.01%. This is amongst the best in the industry. HRB outperforms 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%.
Looking at the Profit Margin, with a value of 12.58%, HRB belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
HRB's Operating Margin of 16.60% is amongst the best of the industry. HRB outperforms 82.54% of its industry peers.

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

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.