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

Discover H&R BLOCK INC (NYSE:HRB)—an undervalued stock our stock screener has picked out. NYSE:HRB demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Understanding NYSE:HRB's Valuation

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 8 out of 10:

• Based on the Price/Earnings ratio, HRB is valued cheaply inside the industry as 87.30% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 27.28, HRB is valued rather cheaply.
• The Price/Forward Earnings ratio is 10.56, which indicates a very decent valuation of HRB.
• HRB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 92.06% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 23.53. HRB is valued rather cheaply when compared to this.
• 63.49% of the companies in the same industry are more expensive than HRB, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 90.48% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• HRB has a very decent profitability rating, which may justify a higher PE ratio.

Exploring NYSE:HRB's 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 7 out of 10:

• HRB's Return On Assets of 16.49% is amongst the best of the industry. HRB outperforms 92.06% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 25.89%, HRB belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 11.87%.
• HRB has a better Profit Margin (11.05%) than 79.37% of its industry peers.
• In the last couple of years the Profit Margin of HRB has grown nicely.
• HRB has a Operating Margin of 15.17%. This is amongst the best in the industry. HRB outperforms 80.95% of its industry peers.
• HRB's Operating Margin has improved in the last couple of years.

Assessing Health for NYSE:HRB

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HRB has received a 5 out of 10:

• HRB has an Altman-Z score of 3.46. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
• HRB has a Altman-Z score of 3.46. This is in the better half of the industry: HRB outperforms 79.37% of its industry peers.
• The Debt to FCF ratio of HRB is 2.27, which is a good value as it means it would take HRB, 2.27 years of fcf income to pay off all of its debts.
• HRB's Debt to FCF ratio of 2.27 is fine compared to the rest of the industry. HRB outperforms 76.19% of its industry peers.

Growth Insights: NYSE:HRB

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:HRB has earned a 5 for growth:

• The Earnings Per Share has grown by an nice 14.62% over the past year.
• HRB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.54% yearly.
• Looking at the last year, HRB shows a quite strong growth in Revenue. The Revenue has grown by 9.44% in the last year.
• Based on estimates for the next years, HRB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.29% on average per year.

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

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

Keep in mind

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.