H&R BLOCK INC (HRB) Fundamental Analysis & Valuation
NYSE:HRB • US0936711052
Current stock price
31.79 USD
+0.05 (+0.16%)
At close:
30.81 USD
-0.98 (-3.08%)
Pre-Market:
This HRB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- HRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HRB has a Return On Assets of 20.77%. This is amongst the best in the industry. HRB outperforms 94.52% of its industry peers.
- With an excellent Return On Invested Capital value of 29.00%, HRB belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
- HRB had an Average Return On Invested Capital over the past 3 years of 29.50%. This is significantly above the industry average of 15.17%.
| 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
- The Profit Margin of HRB (16.05%) is better than 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.
- The Operating Margin of HRB (22.26%) is better than 87.67% of its industry peers.
- In the last couple of years the Operating Margin of HRB has grown nicely.
- With a Gross Margin value of 44.17%, HRB perfoms like the industry average, outperforming 46.58% of the companies in the same 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. 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.
- Compared to 1 year ago, HRB has less shares outstanding
- Compared to 5 years ago, HRB has less shares outstanding
- The debt/assets ratio for HRB has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.53 indicates that HRB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of HRB (2.53) is better than 64.38% 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 better Debt to FCF ratio (4.65) than 72.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.53 |
ROIC/WACC3.49
WACC8.32%
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 of 1.29. This is comparable to the rest of the industry: HRB outperforms 53.42% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 1.29, HRB is in line with its industry, outperforming 57.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
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
- HRB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
- Measured over the past years, HRB shows a small growth in Revenue. The Revenue has been growing by 7.34% on average per year.
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 16.05% yearly.
- 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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
4. HRB Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 6.90, the valuation of HRB can be described as very cheap.
- 90.41% of the companies in the same industry are more expensive than HRB, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 25.51, HRB is valued rather cheaply.
- With a Price/Forward Earnings ratio of 5.64, the valuation of HRB can be described as very cheap.
- 97.26% of the companies in the same industry are more expensive than HRB, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 22.76. HRB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 5.64 |
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.
- 90.41% 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 | 7.69 | ||
| EV/EBITDA | 6.36 |
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.
- A more expensive valuation may be justified as HRB's earnings are expected to grow with 16.05% in the coming years.
PEG (NY)1.06
PEG (5Y)0.16
EPS Next 2Y8.9%
EPS Next 3Y16.05%
5. HRB Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 5.37%, HRB is a good candidate for dividend investing.
- The stock price of HRB dropped by -25.39% 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.
- HRB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
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 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 Years9
Div Non Decr Years27
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 Fundamentals: All Metrics, Ratios and Statistics
31.79
+0.05 (+0.16%)
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 Owners95.55%
Inst Owner Change-2.13%
Ins Owners0.94%
Ins Owner Change-0.27%
Market Cap4.03B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target41.82 (31.55%)
Short Float %10.55%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.68%
Div Incr Years9
Div Non Decr Years27
Ex-Date03-04 2026-03-04 (0.42)
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)0.6%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 5.64 | ||
| P/S | 1.06 | ||
| P/FCF | 7.69 | ||
| P/OCF | 6.65 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)4.61
EY14.5%
EPS(NY)5.63
Fwd EY17.72%
FCF(TTM)4.13
FCFY13.01%
OCF(TTM)4.78
OCFY15.03%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.06
PEG (5Y)0.16
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 | 2.53 |
F-Score5
WACC8.32%
ROIC/WACC3.49
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 6.9 and the Price/Book (PB) ratio is -4.9.
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.