NYSE:HRB appears to be flying under the radar despite its strong 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.

Understanding NYSE:HRB's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:HRB has achieved a 8 out of 10:

• HRB is valuated reasonably with a Price/Earnings ratio of 11.64.
• Compared to the rest of the industry, the Price/Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 85.71% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.36. HRB is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 11.50, the valuation of HRB can be described as reasonable.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 84.13% of the companies listed in the same industry.
• HRB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.01, which is the current average of the S&P500 Index.
• HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 63.49% of the companies in the same industry.
• 85.71% of the companies in the same industry are more expensive than HRB, based on the Price/Free Cash Flow ratio.
• 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 Examination for 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:

• The Return On Assets of HRB (14.74%) is better than 92.06% of its industry peers.
• HRB's Return On Invested Capital of 26.01% is amongst the best of the industry. HRB outperforms 93.65% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 15.56%.
• HRB has a Profit Margin of 12.58%. This is amongst the best in the industry. HRB outperforms 87.30% of its industry peers.
• HRB's Operating Margin of 16.60% is amongst the best of the industry. HRB outperforms 80.95% of its industry peers.

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 6 for health provides valuable insights:

• An Altman-Z score of 3.10 indicates that HRB is not in any danger for bankruptcy at the moment.
• HRB has a Altman-Z score of 3.10. This is amongst the best in the industry. HRB outperforms 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 80.95% of its industry peers.

Unpacking NYSE:HRB's Growth Rating

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:

• 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.
• HRB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.80% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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

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

Disclaimer

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.