H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRB - US0936711052 - Common Stock
41.93 USD
-0.31 (-0.73%)
41.93 USD
0 (0%)
Taking everything into account, HRB scores 6 out of 10 in our fundamental rating. HRB was compared to 77 industry peers in the Diversified Consumer Services industry. HRB scores excellent on profitability, but 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. This makes HRB very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HRB was profitable.
In the past year HRB had a positive cash flow from operations.
Each year in the past 5 years HRB has been profitable.
HRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HRB has a Return On Assets of 23.16%. This is amongst the best in the industry. HRB outperforms 97.40% of its industry peers.
HRB has a Return On Invested Capital of 35.30%. This is amongst the best in the industry. HRB outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 9.42%.
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
HRB has a better Profit Margin (16.10%) than 87.01% of its industry peers.
HRB's Profit Margin has been stable in the last couple of years.
The Operating Margin of HRB (22.52%) is better than 88.31% of its industry peers.
HRB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.56%, HRB is in line with its industry, outperforming 46.75% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRB is creating value.
Compared to 1 year ago, HRB has less shares outstanding
HRB has less shares outstanding than it did 5 years ago.
HRB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.11 indicates that HRB is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.11, HRB is doing good in the industry, outperforming 75.32% of the companies in the same industry.
The Debt to FCF ratio of HRB is 3.01, which is a good value as it means it would take HRB, 3.01 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HRB (3.01) is better than 74.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 3.11 |
ROIC/WACC4.44
WACC7.95%
2.3 Liquidity
A Current Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
With a Current ratio value of 0.76, HRB is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
HRB has a Quick Ratio of 0.76. This is a bad value and indicates that HRB is not financially healthy enough and could expect problems in meeting its short term obligations.
HRB has a worse Quick ratio (0.76) than 68.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
HRB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.52%.
Measured over the past years, HRB shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.89% on average per year.
The Revenue has decreased by -0.88% in the past year.
The Revenue has been growing slightly by 7.34% on average over the past years.
EPS 1Y (TTM)7.52%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-2.56%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%5.03%
3.2 Future
The Earnings Per Share is expected to grow by 11.96% on average over the next years. This is quite good.
HRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y5.25%
EPS Next 2Y7.99%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue Next Year4.28%
Revenue Next 2Y3.76%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.88, the valuation of HRB can be described as reasonable.
Based on the Price/Earnings ratio, HRB is valued cheaper than 87.01% of the companies in the same industry.
HRB is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.57 indicates a rather cheap valuation of HRB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 94.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, HRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than 77.92% of the companies in the same industry.
HRB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRB is cheaper than 88.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.2 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
HRB's 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)1.69
PEG (5Y)0.2
EPS Next 2Y7.99%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
HRB has a Yearly Dividend Yield of 4.03%, which is a nice return.
HRB's Dividend Yield is rather good when compared to the industry average which is at 2.12. HRB pays more dividend than 98.70% of the companies in the same industry.
HRB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
5.2 History
On average, the dividend of HRB grows each year by 6.79%, which is quite nice.
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
HRB pays out 33.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.41%
EPS Next 2Y7.99%
EPS Next 3Y11.96%
41.93
-0.31 (-0.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change-1.6%
Ins Owners0.95%
Ins Owner Change3.23%
Market Cap5.30B
Revenue(TTM)3.77B
Net Income(TTM)607.22M
Analysts50.91
Price Target56.1 (33.79%)
Short Float %10.06%
Short Ratio9.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.41%
Div Incr Years9
Div Non Decr Years27
Ex-Date
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)-1.64%
EPS NQ rev (3m)-3.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 7.57 | ||
| P/S | 1.41 | ||
| P/FCF | 9.2 | ||
| P/OCF | 8.12 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)4.72
EY11.26%
EPS(NY)5.54
Fwd EY13.21%
FCF(TTM)4.56
FCFY10.87%
OCF(TTM)5.16
OCFY12.31%
SpS29.82
BVpS-4.36
TBVpS-12.68
PEG (NY)1.69
PEG (5Y)0.2
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 | 3.11 |
F-Score6
WACC7.95%
ROIC/WACC4.44
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)7.52%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-2.56%
EPS Next Y5.25%
EPS Next 2Y7.99%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%5.03%
Revenue Next Year4.28%
Revenue Next 2Y3.76%
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 of H&R BLOCK INC (HRB) stock?
ChartMill assigns a valuation rating of 8 / 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.
What is the expected EPS growth for H&R BLOCK INC (HRB) stock?
The Earnings per Share (EPS) of H&R BLOCK INC (HRB) is expected to grow by 5.25% in the next year.
Is the dividend of H&R BLOCK INC sustainable?
The dividend rating of H&R BLOCK INC (HRB) is 9 / 10 and the dividend payout ratio is 33.41%.