NYSE:HRB stands out as a stock that provides good value for the fundamentals it showcases.

H&R BLOCK INC (NYSE:HRB) has caught the attention of our stock screener as a great value stock. NYSE:HRB excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Exploring NYSE:HRB's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:HRB has earned a 8 for valuation:

• Based on the Price/Earnings ratio, HRB is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 27.29. HRB is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 10.48, which indicates a very decent valuation of HRB.
• Based on the Price/Forward Earnings ratio, HRB is valued cheaper than 90.91% of the companies in the same industry.
• HRB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
• HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 65.15% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 87.88% 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.
• The decent profitability rating of HRB may justify a higher PE ratio.

Evaluating Profitability: 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 7 out of 10:

• HRB has a better Return On Assets (16.49%) than 90.91% of its industry peers.
• HRB's Return On Invested Capital of 25.89% is amongst the best of the industry. HRB outperforms 95.45% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 12.30%.
• HRB has a Profit Margin of 11.05%. This is in the better half of the industry: HRB outperforms 78.79% of its industry peers.
• In the last couple of years the Profit Margin of HRB has grown nicely.
• The Operating Margin of HRB (15.17%) is better than 80.30% of its industry peers.
• HRB's Operating Margin has improved in the last couple of years.

Assessing 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 5 out of 10:

• HRB has an Altman-Z score of 3.45. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
• HRB's Altman-Z score of 3.45 is fine compared to the rest of the industry. HRB outperforms 77.27% of its industry peers.
• 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.
• Looking at the Debt to FCF ratio, with a value of 2.27, HRB is in the better half of the industry, outperforming 75.76% of the companies in the same industry.

Growth Examination for NYSE:HRB

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:HRB scores a 5 out of 10:

• HRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.62%, which is quite good.
• The Earnings Per Share has been growing by 15.54% on average over the past years. This is quite good.
• The Revenue has grown by 9.44% in the past year. This is quite good.
• HRB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.29% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.