H&R BLOCK INC (HRB) Fundamental Analysis & Valuation
NYSE:HRB • US0936711052
30.85 USD
-0.65 (-2.06%)
At close: Mar 4, 2026
30.85 USD
0 (0%)
After Hours: 3/4/2026, 8:04:00 PM
This HRB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
HRB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 75 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally HRB also has an excellent dividend rating. With these ratings, HRB could be worth investigating further for value and dividend investing!.
1. HRB Profitability Analysis
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.
- In the past 5 years HRB always reported a positive cash flow from operatings.
1.2 Ratios
- HRB's Return On Assets of 20.77% is amongst the best of the industry. HRB outperforms 94.67% of its industry peers.
- HRB has a better Return On Invested Capital (29.00%) than 98.67% of its industry peers.
- HRB had an Average Return On Invested Capital over the past 3 years of 29.50%. This is significantly above the industry average of 11.21%.
| 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 better Profit Margin (16.05%) than 88.00% 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 88.00% of its industry peers.
- HRB's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 44.17%, HRB is in line with its industry, outperforming 46.67% of the companies in the same industry.
- HRB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.26% | ||
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRB is creating value.
- Compared to 1 year ago, HRB has less shares outstanding
- The number of shares outstanding for HRB has been reduced compared to 5 years ago.
- Compared to 1 year ago, HRB has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.51 indicates that HRB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- HRB's Altman-Z score of 2.51 is fine compared to the rest of the industry. HRB outperforms 68.00% 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.
- HRB has a Debt to FCF ratio of 4.65. This is in the better half of the industry: HRB outperforms 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.51 |
ROIC/WACC3.65
WACC7.95%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
- The Current ratio of HRB (1.29) 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's Quick ratio of 1.29 is fine compared to the rest of the industry. HRB outperforms 61.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. HRB Growth Analysis
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.
- The Revenue has been growing slightly by 4.70% in the past year.
- 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
- The Earnings Per Share is expected to grow by 11.96% on average over the next years. This is quite good.
- 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 Year4.36%
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
- A Price/Earnings ratio of 6.69 indicates a rather cheap valuation of HRB.
- HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 93.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.03, HRB is valued rather cheaply.
- The Price/Forward Earnings ratio is 5.53, which indicates a rather cheap valuation of HRB.
- Based on the Price/Forward Earnings ratio, HRB is valued cheaper than 98.67% of the companies in the same industry.
- HRB is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 5.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 93.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.46 | ||
| EV/EBITDA | 6.24 |
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.
PEG (NY)1.14
PEG (5Y)0.15
EPS Next 2Y8.37%
EPS Next 3Y11.96%
5. HRB Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 5.34%, HRB is a good candidate for dividend investing.
- The stock price of HRB dropped by -26.74% 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 0.39, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
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 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%
HRB Fundamentals: All Metrics, Ratios and Statistics
30.85
-0.65 (-2.06%)
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-2.15%
Ins Owners0.91%
Ins Owner Change-0.27%
Market Cap3.91B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target41.82 (35.56%)
Short Float %10.57%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.34% |
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)0.81%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 5.53 | ||
| P/S | 1.03 | ||
| P/FCF | 7.46 | ||
| P/OCF | 6.46 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.24 |
EPS(TTM)4.61
EY14.94%
EPS(NY)5.58
Fwd EY18.08%
FCF(TTM)4.13
FCFY13.4%
OCF(TTM)4.78
OCFY15.49%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.14
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 | 2.51 |
F-Score5
WACC7.95%
ROIC/WACC3.65
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 Year4.36%
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 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 6 / 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.