H&R BLOCK INC (HRB) Stock Fundamental Analysis
NYSE:HRB - New York Stock Exchange, Inc. - US0936711052 - Common Stock - Currency: USD
Overall HRB gets a fundamental rating of 6 out of 10. We evaluated HRB against 71 industry peers in the Diversified Consumer Services industry. While HRB has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on HRB. HRB also has an excellent dividend rating. These ratings would make HRB suitable for value and dividend investing!
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.
Of the past 5 years HRB 4 years were profitable.
In the past 5 years HRB always reported a positive cash flow from operatings.
1.2 Ratios
HRB's Return On Assets of 16.49% is amongst the best of the industry. HRB outperforms 92.19% of its industry peers.
With an excellent Return On Invested Capital value of 25.89%, HRB belongs to the best of the industry, outperforming 95.31% 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 11.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.49% | ||
| ROE | N/A | ||
| ROIC | 25.89% |
ROA(3y)17.74%
ROA(5y)13.8%
ROE(3y)877.58%
ROE(5y)557.23%
ROIC(3y)27.24%
ROIC(5y)22.03%
1.3 Margins
HRB has a Profit Margin of 11.05%. This is in the better half of the industry: HRB outperforms 79.69% of its industry peers.
In the last couple of years the Profit Margin of HRB has grown nicely.
With an excellent Operating Margin value of 15.17%, HRB belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Operating Margin of HRB has grown nicely.
HRB has a Gross Margin (40.56%) which is in line with its industry peers.
In the last couple of years the Gross Margin of HRB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.17% | ||
| PM (TTM) | 11.05% | ||
| GM | 40.56% |
OM growth 3Y-0.35%
OM growth 5Y2.31%
PM growth 3Y-1.2%
PM growth 5Y3.82%
GM growth 3Y-0.88%
GM growth 5Y0.73%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HRB is creating value.
HRB has less shares outstanding than it did 1 year ago.
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.
2.2 Solvency
HRB has an Altman-Z score of 3.48. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
HRB has a better Altman-Z score (3.48) than 81.25% 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.
With a decent Debt to FCF ratio value of 2.27, HRB is doing good in the industry, outperforming 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 3.48 |
ROIC/WACC2.57
WACC10.08%
2.3 Liquidity
A Current Ratio of 0.77 indicates that HRB may have some problems paying its short term obligations.
The Current ratio of HRB (0.77) is worse than 68.75% of its industry peers.
A Quick Ratio of 0.77 indicates that HRB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, HRB is doing worse than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.62% over the past year.
Measured over the past years, HRB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.54% on average per year.
HRB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.44%.
The Revenue has been growing slightly by 3.13% on average over the past years.
EPS 1Y (TTM)14.62%
EPS 3Y9.34%
EPS 5Y15.54%
EPS Q2Q%-11.43%
Revenue 1Y (TTM)9.44%
Revenue growth 3Y1.88%
Revenue growth 5Y3.13%
Sales Q2Q%5.45%
3.2 Future
The Earnings Per Share is expected to grow by 8.29% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.77% on average over the next years.
EPS Next Y18.47%
EPS Next 2Y7.29%
EPS Next 3Y8.29%
EPS Next 5YN/A
Revenue Next Year4.02%
Revenue Next 2Y3.31%
Revenue Next 3Y2.77%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
HRB is valuated correctly with a Price/Earnings ratio of 12.63.
HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 85.94% of the companies in the same industry.
When comparing the Price/Earnings ratio of HRB to the average of the S&P500 Index (28.51), we can say HRB is valued rather cheaply.
HRB is valuated reasonably with a Price/Forward Earnings ratio of 10.68.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 90.63% of the companies listed 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 93.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 67.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HRB is valued cheaper than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 12.44 |
4.3 Compensation for Growth
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.
PEG (NY)0.68
PEG (5Y)0.81
EPS Next 2Y7.29%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
HRB has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
HRB's Dividend Yield is rather good when compared to the industry average which is at 4.52. HRB pays more dividend than 93.75% of the companies in the same industry.
HRB's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
The dividend of HRB has a limited annual growth rate of 4.72%.
HRB has paid a dividend for at least 10 years, which is a reliable track record.
HRB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.72%
Div Incr Years9
Div Non Decr Years27
5.3 Sustainability
HRB pays out 43.15% of its income as dividend. This is a bit on the high side, but may be sustainable.
HRB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP43.15%
EPS Next 2Y7.29%
EPS Next 3Y8.29%
H&R BLOCK INC
NYSE:HRB (1/31/2025, 12:35:06 PM)
55.43
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners95.79%
Inst Owner Change0.9%
Ins Owners1.08%
Ins Owner Change-1.52%
Market Cap7.60B
Analysts77.5
Price Target63.92 (15.32%)
Short Float %9.21%
Short Ratio9.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend1.26
Dividend Growth(5Y)4.72%
DP43.15%
Div Incr Years9
Div Non Decr Years27
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.61%
Min EPS beat(2)1.83%
Max EPS beat(2)7.39%
EPS beat(4)4
Avg EPS beat(4)8.68%
Min EPS beat(4)1.83%
Max EPS beat(4)19.52%
EPS beat(8)7
Avg EPS beat(8)6.48%
EPS beat(12)11
Avg EPS beat(12)8.51%
EPS beat(16)12
Avg EPS beat(16)-0.06%
Revenue beat(2)2
Avg Revenue beat(2)2.12%
Min Revenue beat(2)1.86%
Max Revenue beat(2)2.37%
Revenue beat(4)4
Avg Revenue beat(4)2.52%
Min Revenue beat(4)1.2%
Max Revenue beat(4)4.64%
Revenue beat(8)6
Avg Revenue beat(8)2.55%
Revenue beat(12)9
Avg Revenue beat(12)2.56%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)3.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 10.68 | ||
| P/S | 2 | ||
| P/FCF | 11.55 | ||
| P/OCF | 10.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.44 |
EPS(TTM)4.39
EY7.92%
EPS(NY)5.19
Fwd EY9.37%
FCF(TTM)4.8
FCFY8.66%
OCF(TTM)5.31
OCFY9.57%
SpS27.76
BVpS-2.69
TBVpS-10.33
PEG (NY)0.68
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.49% | ||
| ROE | N/A | ||
| ROCE | 32.89% | ||
| ROIC | 25.89% | ||
| ROICexc | 33.94% | ||
| ROICexgc | 156.62% | ||
| OM | 15.17% | ||
| PM (TTM) | 11.05% | ||
| GM | 40.56% | ||
| FCFM | 17.29% |
ROA(3y)17.74%
ROA(5y)13.8%
ROE(3y)877.58%
ROE(5y)557.23%
ROIC(3y)27.24%
ROIC(5y)22.03%
ROICexc(3y)49.03%
ROICexc(5y)40.5%
ROICexgc(3y)423.16%
ROICexgc(5y)N/A
ROCE(3y)34.61%
ROCE(5y)27.98%
ROICexcg growth 3Y48.94%
ROICexcg growth 5YN/A
ROICexc growth 3Y11.08%
ROICexc growth 5Y-2.4%
OM growth 3Y-0.35%
OM growth 5Y2.31%
PM growth 3Y-1.2%
PM growth 5Y3.82%
GM growth 3Y-0.88%
GM growth 5Y0.73%
F-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 57.73% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 7.62 | ||
| Cash Conversion | 104.29% | ||
| Profit Quality | 156.44% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.48 |
F-Score6
WACC10.08%
ROIC/WACC2.57
Cap/Depr(3y)49.77%
Cap/Depr(5y)46.23%
Cap/Sales(3y)1.85%
Cap/Sales(5y)2.04%
Profit Quality(3y)127.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.62%
EPS 3Y9.34%
EPS 5Y15.54%
EPS Q2Q%-11.43%
EPS Next Y18.47%
EPS Next 2Y7.29%
EPS Next 3Y8.29%
EPS Next 5YN/A
Revenue 1Y (TTM)9.44%
Revenue growth 3Y1.88%
Revenue growth 5Y3.13%
Sales Q2Q%5.45%
Revenue Next Year4.02%
Revenue Next 2Y3.31%
Revenue Next 3Y2.77%
Revenue Next 5YN/A
EBIT growth 1Y-23.23%
EBIT growth 3Y1.52%
EBIT growth 5Y5.51%
EBIT Next Year12.2%
EBIT Next 3Y5.54%
EBIT Next 5YN/A
FCF growth 1Y-10.73%
FCF growth 3Y4.67%
FCF growth 5Y5.16%
OCF growth 1Y-9.02%
OCF growth 3Y4.82%
OCF growth 5Y3.52%