H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HRB • US0936711052
38.72 USD
-0.73 (-1.85%)
At close: Feb 2, 2026
38.93 USD
+0.21 (+0.54%)
After Hours: 2/2/2026, 8:12:29 PM
Taking everything into account, HRB scores 6 out of 10 in our fundamental rating. HRB was compared to 76 industry peers in the Diversified Consumer Services industry. HRB scores excellent on profitability, but 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. Finally HRB also has an excellent dividend rating. These ratings would make HRB suitable 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.
- HRB had positive earnings in each of the past 5 years.
- Each year in the past 5 years HRB had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of HRB (23.16%) is better than 96.05% of its industry peers.
- HRB's Return On Invested Capital of 35.30% is amongst the best of the industry. HRB outperforms 98.68% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 10.22%.
- 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 85.53% of its industry peers.
- HRB's Profit Margin has been stable in the last couple of years.
- HRB has a better Operating Margin (22.52%) than 86.84% of its industry peers.
- HRB's Operating Margin has improved in the last couple of years.
- HRB's Gross Margin of 44.56% is in line compared to the rest of the industry. HRB outperforms 47.37% of its industry peers.
- HRB's Gross Margin has improved in the last couple of years.
| 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
- 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.
- HRB has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for HRB has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.05 indicates that HRB is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.05, HRB is in the better half of the industry, outperforming 72.37% 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.
- HRB has a Debt to FCF ratio of 3.01. This is in the better half of the industry: HRB outperforms 77.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 3.05 |
ROIC/WACC4.57
WACC7.73%
2.3 Liquidity
- A Current Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
- HRB has a Current ratio of 0.76. This is in the lower half of the industry: HRB underperforms 71.05% 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: 67.11% 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 been growing slightly by 7.52% over the past year.
- 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.
- HRB shows a decrease in Revenue. In the last year, the revenue decreased by -0.88%.
- 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
- HRB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.96% yearly.
- HRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y5.04%
EPS Next 2Y8.21%
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
- The Price/Earnings ratio is 8.20, which indicates a very decent valuation of HRB.
- Based on the Price/Earnings ratio, HRB is valued cheaply inside the industry as 85.53% of the companies are valued more expensively.
- HRB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.41.
- With a Price/Forward Earnings ratio of 6.96, the valuation of HRB can be described as very cheap.
- Based on the Price/Forward Earnings ratio, HRB is valued cheaply inside the industry as 96.05% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.64. HRB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.2 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than 78.95% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.5 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
- HRB's 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.
PEG (NY)1.63
PEG (5Y)0.19
EPS Next 2Y8.21%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- HRB has a Yearly Dividend Yield of 4.32%, which is a nice return.
- In the last 3 months the price of HRB has falen by -22.00%. 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 0.37, HRB pays a better dividend. On top of this HRB pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, HRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
- The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.41%
EPS Next 2Y8.21%
EPS Next 3Y11.96%
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 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.
Can you provide the financial health for HRB stock?
The financial health rating of H&R BLOCK INC (HRB) is 5 / 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 5.04% in the next year.