H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HRB • US0936711052
29.83 USD
-2.8 (-8.58%)
At close: Feb 11, 2026
30.07 USD
+0.24 (+0.8%)
After Hours: 2/11/2026, 8:04:00 PM
Overall HRB gets a fundamental rating of 7 out of 10. We evaluated HRB 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 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.
- HRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HRB has a better Return On Assets (20.77%) than 94.67% of its industry peers.
- HRB has a Return On Invested Capital of 29.00%. This is amongst the best in the industry. HRB outperforms 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 10.20%.
| 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.
- With an excellent Operating Margin value of 22.26%, HRB belongs to the best of the industry, outperforming 86.67% 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 (44.17%) which is in line with 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. Health
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
- Compared to 5 years ago, HRB has less shares outstanding
- Compared to 1 year ago, HRB has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.55 indicates that HRB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- HRB's Altman-Z score of 2.55 is fine compared to the rest of the industry. HRB outperforms 66.67% 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 Debt to FCF ratio of 4.65. This is in the better half of the industry: HRB outperforms 74.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.55 |
ROIC/WACC3.75
WACC7.73%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.29, HRB perfoms like the industry average, outperforming 56.00% 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 in line with its industry peers.
| 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.
- The Earnings Per Share has been growing by 43.89% on average over the past years. This is a very strong growth
- Looking at the last year, HRB shows a small growth in Revenue. The Revenue has grown by 4.70% in the last 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 Year4.25%
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.
- 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. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 6.47, the valuation of HRB can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 90.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.23, HRB is valued rather cheaply.
- The Price/Forward Earnings ratio is 5.35, which indicates a rather cheap valuation of HRB.
- Based on the Price/Forward Earnings ratio, HRB is valued cheaply inside the industry as 98.67% 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 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 5.35 |
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.
- 96.00% 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 | 7.22 | ||
| EV/EBITDA | 6.47 |
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)1.1
PEG (5Y)0.15
EPS Next 2Y8.37%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- HRB has a Yearly Dividend Yield of 5.13%, which is a nice return.
- The stock price of HRB dropped by -32.62% 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 0.39. 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 1.79.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
- HRB has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y8.37%
EPS Next 3Y11.96%
29.83
-2.8 (-8.58%)
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 Cap3.78B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target56.1 (88.07%)
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 | 6.47 | ||
| Fwd PE | 5.35 | ||
| P/S | 1 | ||
| P/FCF | 7.22 | ||
| P/OCF | 6.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)4.61
EY15.45%
EPS(NY)5.58
Fwd EY18.7%
FCF(TTM)4.13
FCFY13.86%
OCF(TTM)4.78
OCFY16.02%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.1
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 | 2.55 |
F-Score5
WACC7.73%
ROIC/WACC3.75
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.