Investors should take notice of NYSE:HRB—it offers a great deal for the fundamentals it presents.

Uncover the hidden value in H&R BLOCK INC (NYSE:HRB) as our stock screening tool recommends it as an undervalued choice. NYSE:HRB maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Assessment of NYSE:HRB

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:HRB scores a 7 out of 10:

• Based on the Price/Earnings ratio, HRB is valued a bit cheaper than 79.37% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 30.00. HRB is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio, HRB is valued cheaper than 85.71% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of HRB to the average of the S&P500 Index (21.62), we can say HRB is valued slightly cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRB indicates a somewhat cheap valuation: HRB is cheaper than 60.32% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 82.54% 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.
• HRB has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis for NYSE:HRB

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:

• Looking at the Return On Assets, with a value of 13.33%, HRB belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
• The Return On Equity of HRB (473.79%) is better than 100.00% of its industry peers.
• HRB has a Return On Invested Capital of 21.03%. This is amongst the best in the industry. HRB outperforms 92.06% of its industry peers.
• HRB had an Average Return On Invested Capital over the past 3 years of 27.24%. This is significantly above the industry average of 11.30%.
• The 3 year average ROIC (27.24%) for HRB is well above the current ROIC(21.03%). The reason for the recent decline needs to be investigated.
• HRB has a better Profit Margin (11.31%) than 84.13% of its industry peers.
• HRB's Profit Margin has improved in the last couple of years.
• The Operating Margin of HRB (15.79%) is better than 79.37% of its industry peers.
• In the last couple of years the Operating Margin of HRB has grown nicely.

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 7 out of 10:

• HRB has an Altman-Z score of 3.61. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 3.61, HRB belongs to the best of the industry, outperforming 82.54% 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.
• With a decent Debt to FCF ratio value of 2.27, HRB is doing good in the industry, outperforming 77.78% of the companies in the same industry.
• 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.

Assessing Growth Metrics for NYSE:HRB

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:HRB was assigned a score of 4 for growth:

• The Earnings Per Share has grown by an nice 15.94% over the past year.
• Measured over the past years, HRB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.54% on average per year.
• The Revenue has grown by 9.28% in the past year. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

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

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.