Balancing Dividends and Fundamentals: The Case of NYSE:HRB.

H&R BLOCK INC (NYSE:HRB) has caught the attention of dividend investors as a stock worth considering. NYSE:HRB excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

A Closer Look at Dividend for NYSE:HRB

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:

• HRB's Dividend Yield is rather good when compared to the industry average which is at 33.23. HRB pays more dividend than 92.19% of the companies 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.
• HRB's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Analysis for NYSE:HRB

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:HRB has earned a 7 out of 10:

• An Altman-Z score of 3.60 indicates that HRB is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.60, HRB belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
• HRB has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as HRB would need 2.27 years to pay back of all of its debts.
• HRB has a Debt to FCF ratio of 2.27. This is in the better half of the industry: HRB outperforms 78.13% of its industry peers.
• Even though the debt/equity ratio score it not favorable for HRB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:HRB has earned a 8 out of 10:

• HRB has a Return On Assets of 13.33%. This is amongst the best in the industry. HRB outperforms 90.63% of its industry peers.
• Looking at the Return On Equity, with a value of 473.79%, HRB belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
• The Return On Invested Capital of HRB (21.03%) is better than 90.63% 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 16.69%.
• The last Return On Invested Capital (21.03%) for HRB is well below the 3 year average (27.24%), which needs to be investigated, but indicates that HRB had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 11.31%, HRB belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
• In the last couple of years the Profit Margin of HRB has grown nicely.
• HRB's Operating Margin of 15.79% is fine compared to the rest of the industry. HRB outperforms 78.13% of its industry peers.
• HRB's Operating Margin has improved in the last couple of years.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.