H&R BLOCK INC (HRB) Fundamental Analysis & Valuation

NYSE:HRB • US0936711052

Current stock price

30.64 USD
+0.38 (+1.26%)
At close:
30.64 USD
0 (0%)
After Hours:

This HRB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. HRB Profitability Analysis

1.1 Basic Checks

  • HRB had positive earnings in the past year.
  • In the past year HRB had a positive cash flow from operations.
  • In the past 5 years HRB has always been profitable.
  • Each year in the past 5 years HRB had a positive operating cash flow.
HRB Yearly Net Income VS EBIT VS OCF VS FCFHRB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 20.77%, HRB belongs to the top of the industry, outperforming 93.15% of the companies in the same industry.
  • The Return On Invested Capital of HRB (29.00%) is better than 97.26% of its industry peers.
  • HRB had an Average Return On Invested Capital over the past 3 years of 29.50%. This is significantly above the industry average of 15.48%.
Industry RankSector Rank
ROA 20.77%
ROE N/A
ROIC 29%
ROA(3y)18.28%
ROA(5y)17.52%
ROE(3y)1016.86%
ROE(5y)695.21%
ROIC(3y)29.5%
ROIC(5y)27.67%
HRB Yearly ROA, ROE, ROICHRB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 -500 1K 1.5K

1.3 Margins

  • HRB has a better Profit Margin (16.05%) than 86.30% of its industry peers.
  • HRB's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 22.26%, HRB belongs to the top of the industry, outperforming 87.67% of the companies in the same industry.
  • HRB's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 44.17%, HRB perfoms like the industry average, outperforming 45.21% of the companies in the same industry.
  • In the last couple of years the Gross Margin of HRB has grown nicely.
Industry RankSector Rank
OM 22.26%
PM (TTM) 16.05%
GM 44.17%
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%
HRB Yearly Profit, Operating, Gross MarginsHRB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

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5

2. HRB Health Analysis

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
  • The number of shares outstanding for HRB has been reduced compared to 5 years ago.
  • The debt/assets ratio for HRB has been reduced compared to a year ago.
HRB Yearly Shares OutstandingHRB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
HRB Yearly Total Debt VS Total AssetsHRB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 2.50 indicates that HRB is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • HRB has a better Altman-Z score (2.50) than 67.12% of its industry peers.
  • The Debt to FCF ratio of HRB is 4.65, which is a neutral value as it means it would take HRB, 4.65 years of fcf income to pay off all of its debts.
  • HRB has a better Debt to FCF ratio (4.65) than 71.23% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.65
Altman-Z 2.5
ROIC/WACC3.67
WACC7.9%
HRB Yearly LT Debt VS Equity VS FCFHRB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • HRB has a Current Ratio of 1.29. This is a normal value and indicates that HRB is financially healthy and should not expect problems in meeting its short term obligations.
  • HRB has a Current ratio (1.29) which is comparable to the rest of the industry.
  • HRB has a Quick Ratio of 1.29. This is a normal value and indicates that HRB is financially healthy and should not expect problems in meeting its short term obligations.
  • HRB's Quick ratio of 1.29 is in line compared to the rest of the industry. HRB outperforms 56.16% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.29
HRB Yearly Current Assets VS Current LiabilitesHRB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. HRB Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.30% over the past year.
  • The Earnings Per Share has been growing by 43.89% on average over the past years. This is a very strong growth
  • Looking at the last year, HRB shows a small growth in Revenue. The Revenue has grown by 4.70% in the last year.
  • The Revenue has been growing slightly by 7.34% on average over the past years.
EPS 1Y (TTM)17.3%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-6.36%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.05%

3.2 Future

  • The Earnings Per Share is expected to grow by 16.05% on average over the next years. This is quite good.
  • Based on estimates for the next years, HRB will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y6.53%
EPS Next 2Y8.9%
EPS Next 3Y16.05%
EPS Next 5YN/A
Revenue Next Year4.36%
Revenue Next 2Y3.78%
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.
HRB Yearly Revenue VS EstimatesHRB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B
HRB Yearly EPS VS EstimatesHRB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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9

4. HRB Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 6.65, the valuation of HRB can be described as very cheap.
  • Based on the Price/Earnings ratio, HRB is valued cheaper than 87.67% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of HRB to the average of the S&P500 Index (27.42), we can say HRB is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 5.44, the valuation of HRB can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, HRB is valued cheaper than 100.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.29. HRB is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.65
Fwd PE 5.44
HRB Price Earnings VS Forward Price EarningsHRB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRB indicates a somewhat cheap valuation: HRB is cheaper than 79.45% of the companies listed in the same industry.
  • HRB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRB is cheaper than 91.78% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.41
EV/EBITDA 6.16
HRB Per share dataHRB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of HRB may justify a higher PE ratio.
  • HRB's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)0.15
EPS Next 2Y8.9%
EPS Next 3Y16.05%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

9

5. HRB Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.42%, HRB is a good candidate for dividend investing.
  • In the last 3 months the price of HRB has falen by -24.43%. 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 0.44, 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 1.81.
Industry RankSector Rank
Dividend Yield 5.42%

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 Years10
Div Non Decr Years28
HRB Yearly Dividends per shareHRB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • HRB pays out 33.68% 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.
DP33.68%
EPS Next 2Y8.9%
EPS Next 3Y16.05%
HRB Yearly Income VS Free CF VS DividendHRB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M
HRB Dividend Payout.HRB Dividend Payout, showing the Payout Ratio.HRB Dividend Payout.PayoutRetained Earnings

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HRB Fundamentals: All Metrics, Ratios and Statistics

H&R BLOCK INC

NYSE:HRB (4/27/2026, 4:05:05 PM)

After market: 30.64 0 (0%)

30.64

+0.38 (+1.26%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-03
Earnings (Next)05-06
Inst Owners95.78%
Inst Owner Change0.42%
Ins Owners0.94%
Ins Owner Change-0.27%
Market Cap3.88B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target41.82 (36.49%)
Short Float %11.06%
Short Ratio5.12
Dividend
Industry RankSector Rank
Dividend Yield 5.42%
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.68%
Div Incr Years10
Div Non Decr Years28
Ex-Date03-04
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.1%
Min EPS beat(2)2.05%
Max EPS beat(2)12.15%
EPS beat(4)3
Avg EPS beat(4)-0.85%
Min EPS beat(4)-20.65%
Max EPS beat(4)12.15%
EPS beat(8)6
Avg EPS beat(8)0.53%
EPS beat(12)9
Avg EPS beat(12)2.7%
EPS beat(16)13
Avg EPS beat(16)4.54%
Revenue beat(2)2
Avg Revenue beat(2)2.69%
Min Revenue beat(2)0.7%
Max Revenue beat(2)4.67%
Revenue beat(4)4
Avg Revenue beat(4)2%
Min Revenue beat(4)0.31%
Max Revenue beat(4)4.67%
Revenue beat(8)7
Avg Revenue beat(8)1.26%
Revenue beat(12)9
Avg Revenue beat(12)1.19%
Revenue beat(16)12
Avg Revenue beat(16)2.03%
PT rev (1m)0%
PT rev (3m)-25.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 6.65
Fwd PE 5.44
P/S 1.02
P/FCF 7.41
P/OCF 6.41
P/B N/A
P/tB N/A
EV/EBITDA 6.16
EPS(TTM)4.61
EY15.05%
EPS(NY)5.63
Fwd EY18.39%
FCF(TTM)4.13
FCFY13.49%
OCF(TTM)4.78
OCFY15.6%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.02
PEG (5Y)0.15
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 20.77%
ROE N/A
ROCE 37.08%
ROIC 29%
ROICexc 34.26%
ROICexgc 78.62%
OM 22.26%
PM (TTM) 16.05%
GM 44.17%
FCFM 13.83%
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-Score5
Asset Turnover1.29
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.65
Debt/EBITDA 2.53
Cap/Depr 69.36%
Cap/Sales 2.15%
Interest Coverage 11.05
Cash Conversion 63%
Profit Quality 86.14%
Current Ratio 1.29
Quick Ratio 1.29
Altman-Z 2.5
F-Score5
WACC7.9%
ROIC/WACC3.67
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 Y6.53%
EPS Next 2Y8.9%
EPS Next 3Y16.05%
EPS Next 5YN/A
Revenue 1Y (TTM)4.7%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.05%
Revenue Next Year4.36%
Revenue Next 2Y3.78%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y11.39%
EBIT growth 3Y3.59%
EBIT growth 5Y35.23%
EBIT Next Year15.15%
EBIT Next 3Y8.27%
EBIT Next 5YN/A
FCF growth 1Y-12.54%
FCF growth 3Y-7.08%
FCF growth 5Y85.45%
OCF growth 1Y-8.24%
OCF growth 3Y-5.57%
OCF growth 5Y44.25%

H&R BLOCK INC / HRB Fundamental Analysis FAQ

What is the fundamental rating for HRB stock?

ChartMill assigns a fundamental rating of 7 / 10 to HRB.


Can you provide the valuation status for H&R BLOCK INC?

ChartMill assigns a valuation rating of 9 / 10 to H&R BLOCK INC (HRB). This can be considered as Undervalued.


Can you provide the profitability details for H&R BLOCK INC?

H&R BLOCK INC (HRB) has a profitability rating of 8 / 10.


What are the PE and PB ratios of H&R BLOCK INC (HRB) stock?

The Price/Earnings (PE) ratio for H&R BLOCK INC (HRB) is 6.65 and the Price/Book (PB) ratio is -4.72.


What is the earnings growth outlook for H&R BLOCK INC?

The Earnings per Share (EPS) of H&R BLOCK INC (HRB) is expected to grow by 6.53% in the next year.