H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HRB • US0936711052
39.45 USD
+0.58 (+1.49%)
At close: Jan 30, 2026
40 USD
+0.55 (+1.39%)
After Hours: 1/30/2026, 8:04:00 PM
We assign a fundamental rating of 6 out of 10 to HRB. HRB was compared to 76 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 may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
- HRB had a positive operating cash flow in the past year.
- In the past 5 years HRB has always been profitable.
- In the past 5 years HRB always reported a positive cash flow from operatings.
1.2 Ratios
- HRB has a better Return On Assets (23.16%) than 96.05% of its industry peers.
- The Return On Invested Capital of HRB (35.30%) is better than 98.68% 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 10.17%.
- 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's Operating Margin of 22.52% is amongst the best of the industry. HRB outperforms 86.84% of its industry peers.
- In the last couple of years the Operating Margin of HRB has grown nicely.
- Looking at the Gross Margin, with a value of 44.56%, HRB is in line with its industry, outperforming 47.37% of the companies in the same industry.
- 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
- 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
- Compared to 5 years ago, HRB has less shares outstanding
- HRB has a better debt/assets ratio than last year.
2.2 Solvency
- HRB has an Altman-Z score of 3.05. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of HRB (3.05) is better than 71.05% of its industry peers.
- HRB has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as HRB would need 3.01 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.01, HRB is in the better half of the industry, outperforming 77.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 3.05 |
ROIC/WACC4.55
WACC7.75%
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.
- HRB has a Quick Ratio of 0.76. This is a bad value and indicates that HRB is not financially healthy enough and could expect problems in meeting its short term obligations.
- HRB has a Quick ratio of 0.76. This is in the lower half of the industry: HRB underperforms 67.11% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 43.89% on average over the past years. This is a very strong growth
- The Revenue has decreased by -0.88% 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)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
- 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.
- 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 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
- 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
- With a Price/Earnings ratio of 8.36, the valuation of HRB can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 85.53% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. HRB is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.09, which indicates a rather cheap valuation of HRB.
- Based on the Price/Forward Earnings ratio, HRB is valued cheaply inside the industry as 96.05% of the companies are valued more expensively.
- HRB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 7.09 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 94.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.66 | ||
| 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.
- HRB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)0.19
EPS Next 2Y8.21%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.32%, HRB is a good candidate for dividend investing.
- In the last 3 months the price of HRB has falen by -20.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- HRB's Dividend Yield is rather good when compared to the industry average which is at 0.37. 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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
- 33.41% 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.
DP33.41%
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.