H&R BLOCK INC (HRB) Stock Fundamental Analysis
NYSE:HRB • US0936711052
28.785 USD
-1.04 (-3.5%)
Last: Feb 12, 2026, 11:19 AM
We assign a fundamental rating of 7 out of 10 to HRB. HRB was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. HRB also has an excellent dividend rating. With these ratings, HRB could be worth investigating further 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
- HRB has a better Return On Assets (20.77%) than 94.67% of its industry peers.
- HRB has a better Return On Invested Capital (29.00%) than 98.67% 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 10.20%.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 16.05%, HRB belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- HRB's Profit Margin has been stable in the last couple of years.
- HRB's Operating Margin of 22.26% is amongst the best of the industry. HRB outperforms 86.67% of its industry peers.
- HRB's Operating Margin has improved in the last couple of years.
- The Gross Margin of HRB (44.17%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of HRB has grown nicely.
| Industry Rank | Sector 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%
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
- HRB has less shares outstanding than it did 5 years ago.
- HRB has a better debt/assets ratio than last year.
2.2 Solvency
- HRB has an Altman-Z score of 2.49. 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.
- The Altman-Z score of HRB (2.49) is better than 66.67% 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.
- With a decent Debt to FCF ratio value of 4.65, HRB is doing good in the industry, outperforming 74.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.49 |
ROIC/WACC3.74
WACC7.76%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
- HRB has a Current ratio (1.29) which is comparable to the rest of the industry.
- A Quick Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.29, HRB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
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.
- The Revenue has been growing slightly by 4.70% in the past year.
- 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)4.7%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.05%
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.
- 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
- 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.
- 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
- Based on the Price/Earnings ratio of 6.24, the valuation of HRB can be described as very cheap.
- Based on the Price/Earnings ratio, HRB is valued cheaper than 92.00% of the companies in the same industry.
- HRB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
- The Price/Forward Earnings ratio is 5.16, which indicates a rather cheap valuation of HRB.
- HRB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 98.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, HRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.24 | ||
| Fwd PE | 5.16 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HRB is valued cheaply inside the industry as 81.33% of the companies are valued more expensively.
- 96.00% of the companies in the same industry are more expensive than HRB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.96 | ||
| EV/EBITDA | 6.1 |
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)1.06
PEG (5Y)0.14
EPS Next 2Y8.37%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- HRB has a Yearly Dividend Yield of 5.15%, which is a nice return.
- In the last 3 months the price of HRB has falen by -32.62%. 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 0.39, 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 1.80, HRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
- The dividend of HRB is nicely growing with an annual growth rate of 6.79%!
- HRB has been paying a dividend for at least 10 years, so it has 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
- 33.68% 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.
DP33.68%
EPS Next 2Y8.37%
EPS Next 3Y11.96%
NYSE:HRB (2/12/2026, 11:19:07 AM)
28.785
-1.04 (-3.5%)
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 Cap3.65B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target56.1 (94.89%)
Short Float %9.21%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.68%
Div Incr Years9
Div Non Decr Years27
Ex-DateN/A
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)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 | 6.24 | ||
| Fwd PE | 5.16 | ||
| P/S | 0.96 | ||
| P/FCF | 6.96 | ||
| P/OCF | 6.02 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)4.61
EY16.02%
EPS(NY)5.58
Fwd EY19.38%
FCF(TTM)4.13
FCFY14.36%
OCF(TTM)4.78
OCFY16.6%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.06
PEG (5Y)0.14
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.49 |
F-Score5
WACC7.76%
ROIC/WACC3.74
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)4.7%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.05%
Revenue Next Year4.25%
Revenue Next 2Y3.69%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y11.39%
EBIT growth 3Y3.59%
EBIT growth 5Y35.23%
EBIT Next Year14.81%
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 FAQ
What is the fundamental rating for HRB stock?
ChartMill assigns a fundamental rating of 7 / 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 5.89% in the next year.