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

NYSE:HRB • US0936711052

Current stock price

29.8 USD
-1.07 (-3.47%)
At close:
29.974 USD
+0.17 (+0.58%)
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

  • 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.
  • In the past 5 years HRB always reported a positive cash flow from operatings.
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

  • HRB's Return On Assets of 20.77% is amongst the best of the industry. HRB outperforms 94.52% of its industry peers.
  • The Return On Invested Capital of HRB (29.00%) is better than 97.26% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 15.36%.
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 Profit Margin of 16.05%. This is amongst the best in the industry. HRB outperforms 87.67% of its industry peers.
  • In the last couple of years the Profit Margin of HRB has remained more or less at the same level.
  • HRB's Operating Margin of 22.26% is amongst the best of the industry. HRB outperforms 87.67% of its industry peers.
  • In the last couple of years the Operating Margin of HRB has grown nicely.
  • HRB's Gross Margin of 44.17% is in line compared to the rest of the industry. HRB outperforms 45.21% of its industry peers.
  • HRB's Gross Margin has improved in the last couple of years.
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

5

2. HRB Health Analysis

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.
  • Compared to 5 years ago, HRB has less shares outstanding
  • 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 2.49 indicates that HRB is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • HRB has a Altman-Z score of 2.49. This is in the better half of the industry: HRB outperforms 68.49% of its industry peers.
  • HRB has a debt to FCF ratio of 4.65. This is a neutral value as HRB would need 4.65 years to pay back of all of its debts.
  • HRB has a Debt to FCF ratio of 4.65. This is in the better half of the industry: HRB outperforms 71.23% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.65
Altman-Z 2.49
ROIC/WACC3.47
WACC8.37%
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.
  • A Quick Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
  • HRB has a Quick ratio (1.29) which is in line with 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

5

3. HRB Growth Analysis

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.
  • Looking at the last year, HRB shows a small growth in Revenue. The Revenue has grown by 4.70% in the last 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

  • Based on estimates for the next years, HRB will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.05% on average per year.
  • The Revenue is expected to grow by 3.32% on average over the next years.
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

  • 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.
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

9

4. HRB Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.46, the valuation of HRB can be described as very cheap.
  • Based on the Price/Earnings ratio, HRB is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of HRB to the average of the S&P500 Index (26.86), we can say HRB is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 5.29, 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 98.63% of the companies are valued more expensively.
  • HRB is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.46
Fwd PE 5.29
HRB Price Earnings VS Forward Price EarningsHRB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HRB is valued cheaply inside the industry as 83.56% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 93.15% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.21
EV/EBITDA 6.1
HRB Per share dataHRB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

  • HRB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.99
PEG (5Y)0.15
EPS Next 2Y8.9%
EPS Next 3Y16.05%

9

5. HRB Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.44%, HRB is a good candidate for dividend investing.
  • The stock price of HRB dropped by -33.90% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • HRB's Dividend Yield is rather good when compared to the industry average which is at 0.44. HRB pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, HRB pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.44%

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 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

HRB Fundamentals: All Metrics, Ratios and Statistics

H&R BLOCK INC

NYSE:HRB (4/10/2026, 8:04:00 PM)

After market: 29.974 +0.17 (+0.58%)

29.8

-1.07 (-3.47%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners95.78%
Inst Owner Change0.07%
Ins Owners0.94%
Ins Owner Change-0.27%
Market Cap3.78B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target41.82 (40.34%)
Short Float %10.55%
Short Ratio4.88
Dividend
Industry RankSector Rank
Dividend Yield 5.44%
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 6.46
Fwd PE 5.29
P/S 1
P/FCF 7.21
P/OCF 6.24
P/B N/A
P/tB N/A
EV/EBITDA 6.1
EPS(TTM)4.61
EY15.47%
EPS(NY)5.63
Fwd EY18.9%
FCF(TTM)4.13
FCFY13.87%
OCF(TTM)4.78
OCFY16.04%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)0.99
PEG (5Y)0.15
Graham NumberN/A
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 2.49
F-Score5
WACC8.37%
ROIC/WACC3.47
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 6.46 and the Price/Book (PB) ratio is -4.59.


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.