H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HRB • US0936711052
31.565 USD
-1.07 (-3.26%)
Last: Feb 11, 2026, 10:16 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. HRB has an excellent profitability rating, 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. 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
- HRB had positive earnings in the past year.
- In the past year HRB had a positive cash flow from operations.
- In the past 5 years HRB has always been profitable.
- HRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HRB (20.77%) is better than 94.67% of its industry peers.
- HRB has a better Return On Invested Capital (29.00%) than 98.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 10.44%.
| 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
- HRB's Profit Margin of 16.05% is amongst the best of the industry. HRB outperforms 86.67% of its industry peers.
- HRB's Profit Margin has been stable in the last couple of years.
- HRB has a Operating Margin of 22.26%. This is amongst the best in the industry. HRB outperforms 86.67% 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 48.00% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRB is creating value.
- The number of shares outstanding for HRB has been reduced compared to 1 year ago.
- 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 2.55. 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 (2.55) 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.
- Looking at the Debt to FCF ratio, with a value of 4.65, HRB is in the better half of 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 | 2.55 |
ROIC/WACC3.72
WACC7.79%
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.
- 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.
- The Quick ratio of HRB (1.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
- HRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.30%, which is quite good.
- 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.
- Looking at the last year, HRB shows a small growth in Revenue. The Revenue has grown by 4.70% in the last year.
- The Revenue has been growing slightly by 7.34% on average over the past years.
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 11.96% on average per year.
- HRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y5.89%
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
- A Price/Earnings ratio of 6.85 indicates a rather cheap valuation of HRB.
- Based on the Price/Earnings ratio, HRB is valued cheaper than 90.67% of the companies in the same industry.
- HRB is valuated cheaply when we compare the Price/Earnings ratio to 28.03, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 5.66 indicates a rather cheap valuation of HRB.
- 98.67% of the companies in the same industry are more expensive than HRB, based on the Price/Forward Earnings ratio.
- HRB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.97.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 5.66 |
4.2 Price Multiples
- HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 80.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.63 | ||
| EV/EBITDA | 6.47 |
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)1.16
PEG (5Y)0.16
EPS Next 2Y8.37%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.13%, HRB is a good candidate for dividend investing.
- The stock price of HRB dropped by -26.29% 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.
- Compared to an average industry Dividend Yield of 0.38, HRB pays a better dividend. On top of this HRB pays more dividend than 100.00% of the companies listed in the same industry.
- HRB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
5.2 History
- On average, the dividend of HRB grows each year by 6.79%, which is quite nice.
- 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 2Y8.37%
EPS Next 3Y11.96%
NYSE:HRB (2/11/2026, 10:16:06 AM)
31.565
-1.07 (-3.26%)
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 Cap4.00B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target56.1 (77.73%)
Short Float %9.21%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
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 | 6.85 | ||
| Fwd PE | 5.66 | ||
| P/S | 1.06 | ||
| P/FCF | 7.63 | ||
| P/OCF | 6.61 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)4.61
EY14.6%
EPS(NY)5.58
Fwd EY17.67%
FCF(TTM)4.13
FCFY13.1%
OCF(TTM)4.78
OCFY15.14%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.16
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 | 2.55 |
F-Score5
WACC7.79%
ROIC/WACC3.72
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.