H&R BLOCK INC (HRB) Fundamental Analysis & Valuation
NYSE:HRB • US0936711052
30.97 USD
-1.29 (-4%)
At close: Mar 9, 2026
30.97 USD
0 (0%)
After Hours: 3/9/2026, 7:04:52 PM
This HRB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, HRB scores 7 out of 10 in our fundamental rating. HRB was compared to 74 industry peers in the Diversified Consumer Services industry. HRB scores excellent on profitability, 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. These ratings could make HRB a good candidate for value and dividend investing.
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.
- Each year in the past 5 years HRB had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of HRB (20.77%) is better than 95.95% of its industry peers.
- The Return On Invested Capital of HRB (29.00%) is better than 98.65% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 10.83%.
| 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 has a Profit Margin of 16.05%. This is amongst the best in the industry. HRB outperforms 87.84% of its industry peers.
- In the last couple of years the Profit Margin of HRB has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 22.26%, HRB belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
- In the last couple of years the Operating Margin of HRB has grown nicely.
- HRB has a Gross Margin of 44.17%. This is comparable to the rest of the industry: HRB outperforms 47.30% of its industry peers.
- HRB's Gross Margin has improved in the last couple of years.
| 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
- 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
- An Altman-Z score of 2.54 indicates that HRB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- HRB has a better Altman-Z score (2.54) than 70.27% 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.
- With a decent Debt to FCF ratio value of 4.65, HRB is doing good in the industry, outperforming 74.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.54 |
ROIC/WACC3.55
WACC8.18%
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.
- With a Current ratio value of 1.29, HRB perfoms like the industry average, outperforming 55.41% of the companies in the same 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 comparable to the rest of the 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.
- 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.
- HRB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
- 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.
- HRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
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
- 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.
- 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
- A Price/Earnings ratio of 6.72 indicates a rather cheap valuation of HRB.
- 90.54% 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 26.46, HRB is valued rather cheaply.
- With a Price/Forward Earnings ratio of 5.50, the valuation of HRB can be described as very cheap.
- 97.30% of the companies in the same industry are more expensive than HRB, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.65, HRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 5.5 |
4.2 Price Multiples
- HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 79.73% of the companies in the same industry.
- HRB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRB is cheaper than 93.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.49 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
- The 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.
- HRB's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)0.15
EPS Next 2Y8.9%
EPS Next 3Y16.05%
5. HRB Dividend Analysis
5.1 Amount
- HRB has a Yearly Dividend Yield of 5.30%, which is a nice return.
- The stock price of HRB dropped by -28.49% 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 0.40, 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 1.82, HRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
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
- 33.68% 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 2Y8.9%
EPS Next 3Y16.05%
HRB Fundamentals: All Metrics, Ratios and Statistics
30.97
-1.29 (-4%)
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 Cap3.93B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target41.82 (35.03%)
Short Float %10.57%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
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)-25.45%
PT rev (3m)-25.45%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.6%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 5.5 | ||
| P/S | 1.04 | ||
| P/FCF | 7.49 | ||
| P/OCF | 6.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.42 |
EPS(TTM)4.61
EY14.89%
EPS(NY)5.63
Fwd EY18.19%
FCF(TTM)4.13
FCFY13.35%
OCF(TTM)4.78
OCFY15.43%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.03
PEG (5Y)0.15
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 | 2.54 |
F-Score5
WACC8.18%
ROIC/WACC3.55
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 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 9 / 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 6.53% in the next year.