H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HRB • US0936711052
32.73 USD
-0.04 (-0.12%)
Last: Feb 10, 2026, 02:43 PM
HRB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 75 industry peers in the Diversified Consumer Services industry. While HRB has a great profitability rating, there are some minor concerns on its financial health. HRB is valued quite cheap, while showing a decent growth score. This is a good combination! HRB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- HRB had positive earnings in the past year.
- HRB had a positive operating cash flow in the past year.
- Each year in the past 5 years HRB has been profitable.
- Each year in the past 5 years HRB had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 23.16%, HRB belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 35.30%, HRB belongs to the top of the industry, outperforming 98.67% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 10.44%.
- The 3 year average ROIC (29.50%) for HRB is below the current ROIC(35.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | N/A | ||
| ROIC | 35.3% |
ROA(3y)18.28%
ROA(5y)17.52%
ROE(3y)1016.86%
ROE(5y)695.21%
ROIC(3y)29.5%
ROIC(5y)27.67%
1.3 Margins
- The Profit Margin of HRB (16.10%) is better than 86.67% of its industry peers.
- HRB's Profit Margin has been stable in the last couple of years.
- HRB has a Operating Margin of 22.52%. This is amongst the best in the industry. HRB outperforms 86.67% of its industry peers.
- In the last couple of years the Operating Margin of HRB has grown nicely.
- With a Gross Margin value of 44.56%, HRB perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of HRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.52% | ||
| PM (TTM) | 16.1% | ||
| GM | 44.56% |
OM growth 3Y0.78%
OM growth 5Y25.98%
PM growth 3Y0.25%
PM growth 5YN/A
GM growth 3Y-0.84%
GM growth 5Y4.86%
2. Health
2.1 Basic Checks
- HRB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, HRB has less shares outstanding
- The number of shares outstanding for HRB has been reduced compared to 5 years ago.
- HRB has a better debt/assets ratio than last year.
2.2 Solvency
- HRB has an Altman-Z score of 2.89. This is not the best score and indicates that HRB is in the grey zone with still only limited risk for bankruptcy at the moment.
- HRB's Altman-Z score of 2.89 is fine compared to the rest of the industry. HRB outperforms 73.33% of its industry peers.
- HRB has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as HRB would need 3.01 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.01, HRB is in the better half of the industry, outperforming 77.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 2.89 |
ROIC/WACC4.53
WACC7.79%
2.3 Liquidity
- A Current Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
- The Current ratio of HRB (0.76) is worse than 69.33% of its industry peers.
- A Quick Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
- With a Quick ratio value of 0.76, HRB is not doing good in the industry: 65.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.30% over the past year.
- HRB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.89% yearly.
- HRB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.17%.
- HRB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.34% yearly.
EPS 1Y (TTM)17.3%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-6.36%
Revenue 1Y (TTM)4.17%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.06%
3.2 Future
- Based on estimates for the next years, HRB will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.96% on average per year.
- The Revenue is expected to grow by 3.32% on average over the next years.
EPS Next Y5.89%
EPS Next 2Y8.37%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue Next Year4.25%
Revenue Next 2Y3.69%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HRB is valuated cheaply with a Price/Earnings ratio of 7.10.
- Based on the Price/Earnings ratio, HRB is valued cheaper than 90.67% of the companies in the same industry.
- HRB is valuated cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 5.87, the valuation of HRB can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 97.33% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HRB to the average of the S&P500 Index (27.86), we can say HRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 5.87 |
4.2 Price Multiples
- 82.67% of the companies in the same industry are more expensive than HRB, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HRB is valued cheaper than 96.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- HRB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)0.16
EPS Next 2Y8.37%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.11%, HRB is a good candidate for dividend investing.
- In the last 3 months the price of HRB has falen by -25.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 0.38, HRB pays a better dividend. On top of this HRB pays more dividend than 100.00% of the companies listed in the same industry.
- HRB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
5.2 History
- The dividend of HRB is nicely growing with an annual growth rate of 6.79%!
- 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.
Dividend Growth(5Y)6.79%
Div Incr Years9
Div Non Decr Years27
5.3 Sustainability
- 33.41% of the earnings are spent on dividend by HRB. This is a low number and sustainable payout ratio.
- HRB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.41%
EPS Next 2Y8.37%
EPS Next 3Y11.96%
NYSE:HRB (2/10/2026, 2:43:41 PM)
32.73
-0.04 (-0.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)05-05 2026-05-05
Inst Owners97.19%
Inst Owner Change-0.89%
Ins Owners0.91%
Ins Owner Change4.09%
Market Cap4.14B
Revenue(TTM)3.76B
Net Income(TTM)607.22M
Analysts50.91
Price Target56.1 (71.4%)
Short Float %9.21%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.41%
Div Incr Years9
Div Non Decr Years27
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.25%
Min EPS beat(2)-20.65%
Max EPS beat(2)12.15%
EPS beat(4)2
Avg EPS beat(4)-3.26%
Min EPS beat(4)-20.65%
Max EPS beat(4)12.15%
EPS beat(8)6
Avg EPS beat(8)2.71%
EPS beat(12)9
Avg EPS beat(12)3.23%
EPS beat(16)13
Avg EPS beat(16)5.57%
Revenue beat(2)2
Avg Revenue beat(2)1.5%
Min Revenue beat(2)0.7%
Max Revenue beat(2)2.3%
Revenue beat(4)3
Avg Revenue beat(4)0%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)2.3%
Revenue beat(8)7
Avg Revenue beat(8)1.26%
Revenue beat(12)9
Avg Revenue beat(12)1.7%
Revenue beat(16)12
Avg Revenue beat(16)1.92%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 5.87 | ||
| P/S | 1.1 | ||
| P/FCF | 7.18 | ||
| P/OCF | 6.34 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.69 |
EPS(TTM)4.61
EY14.08%
EPS(NY)5.58
Fwd EY17.04%
FCF(TTM)4.56
FCFY13.92%
OCF(TTM)5.16
OCFY15.77%
SpS29.82
BVpS-4.36
TBVpS-12.68
PEG (NY)1.21
PEG (5Y)0.16
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | N/A | ||
| ROCE | 45.13% | ||
| ROIC | 35.3% | ||
| ROICexc | 44.13% | ||
| ROICexgc | 146.48% | ||
| OM | 22.52% | ||
| PM (TTM) | 16.1% | ||
| GM | 44.56% | ||
| FCFM | 15.28% |
ROA(3y)18.28%
ROA(5y)17.52%
ROE(3y)1016.86%
ROE(5y)695.21%
ROIC(3y)29.5%
ROIC(5y)27.67%
ROICexc(3y)56.68%
ROICexc(5y)50.15%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)37.72%
ROCE(5y)35.37%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y16.18%
ROICexc growth 5Y32.13%
OM growth 3Y0.78%
OM growth 5Y25.98%
PM growth 3Y0.25%
PM growth 5YN/A
GM growth 3Y-0.84%
GM growth 5Y4.86%
F-Score6
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 65.42% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 10.19 | ||
| Cash Conversion | 67.55% | ||
| Profit Quality | 94.88% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.89 |
F-Score6
WACC7.79%
ROIC/WACC4.53
Cap/Depr(3y)58.64%
Cap/Depr(5y)50.63%
Cap/Sales(3y)1.98%
Cap/Sales(5y)1.86%
Profit Quality(3y)115.52%
Profit Quality(5y)116.11%
High Growth Momentum
Growth
EPS 1Y (TTM)17.3%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-6.36%
EPS Next Y5.89%
EPS Next 2Y8.37%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue 1Y (TTM)4.17%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.06%
Revenue Next Year4.25%
Revenue Next 2Y3.69%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y47.2%
EBIT growth 3Y3.59%
EBIT growth 5Y35.23%
EBIT Next Year14.81%
EBIT Next 3Y8.27%
EBIT Next 5YN/A
FCF growth 1Y-22.36%
FCF growth 3Y-7.08%
FCF growth 5Y85.45%
OCF growth 1Y-19.28%
OCF growth 3Y-5.57%
OCF growth 5Y44.25%
H&R BLOCK INC / HRB FAQ
What is the fundamental rating for HRB stock?
ChartMill assigns a fundamental rating of 6 / 10 to HRB.
What is the valuation status for HRB stock?
ChartMill assigns a valuation rating of 9 / 10 to H&R BLOCK INC (HRB). This can be considered as Undervalued.
How profitable is H&R BLOCK INC (HRB) stock?
H&R BLOCK INC (HRB) has a profitability rating of 8 / 10.
Can you provide the financial health for HRB stock?
The financial health rating of H&R BLOCK INC (HRB) is 4 / 10.
Can you provide the expected EPS growth for HRB stock?
The Earnings per Share (EPS) of H&R BLOCK INC (HRB) is expected to grow by 5.89% in the next year.