H&R BLOCK INC (HRB) Fundamental Analysis & Valuation
NYSE:HRB • US0936711052
Current stock price
29.8 USD
-1.07 (-3.47%)
At close:
29.8 USD
0 (0%)
Pre-Market:
This HRB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. HRB Profitability Analysis
1.1 Basic Checks
- In the past year HRB was profitable.
- 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's Return On Assets of 20.77% is amongst the best of the industry. HRB outperforms 94.44% of its industry peers.
- With an excellent Return On Invested Capital value of 29.00%, HRB belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 15.36%.
| 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 87.50% 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 87.50% 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 comparable to the rest of the 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.
- 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 2.49. 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.
- HRB has a better Altman-Z score (2.49) than 68.06% 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.
- With a decent Debt to FCF ratio value of 4.65, HRB is doing good in the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.49 |
ROIC/WACC3.48
WACC8.33%
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.
- HRB has a Current ratio (1.29) which is in line with its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 1.29, HRB is in line with its industry, outperforming 56.94% of the companies in the same industry.
| 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.
- HRB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.89% yearly.
- 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 16.05% 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 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
- HRB is valuated cheaply with a Price/Earnings ratio of 6.46.
- Based on the Price/Earnings ratio, HRB is valued cheaply inside the industry as 90.28% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.86. HRB is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 5.29, the valuation of HRB can be described as very cheap.
- HRB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 98.61% of the companies in the same industry.
- HRB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 5.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HRB is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, HRB is valued cheaper than 93.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- HRB has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as HRB's earnings are expected to grow with 16.05% in the coming years.
PEG (NY)0.99
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 5.44%, which is a nice return.
- In the last 3 months the price of HRB has falen by -33.90%. 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 0.44. HRB pays more dividend than 100.00% of the companies 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 | 5.44% |
5.2 History
- The dividend of HRB is nicely growing with an annual growth rate of 6.79%!
- HRB has been paying a dividend for at least 10 years, so it has 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 Years10
Div Non Decr Years28
5.3 Sustainability
- HRB pays out 33.68% of its income as dividend. This is a 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
29.8
-1.07 (-3.47%)
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 Owners95.78%
Inst Owner Change0.07%
Ins Owners0.94%
Ins Owner Change-0.27%
Market Cap3.78B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target41.82 (40.34%)
Short Float %10.55%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.68%
Div Incr Years10
Div Non Decr Years28
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)0%
PT rev (3m)-25.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 5.29 | ||
| P/S | 1 | ||
| P/FCF | 7.21 | ||
| P/OCF | 6.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)4.61
EY15.47%
EPS(NY)5.63
Fwd EY18.9%
FCF(TTM)4.13
FCFY13.87%
OCF(TTM)4.78
OCFY16.04%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)0.99
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 | 2.49 |
F-Score5
WACC8.33%
ROIC/WACC3.48
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 Fundamental Analysis FAQ
What is the fundamental rating for HRB stock?
ChartMill assigns a fundamental rating of 7 / 10 to HRB.
Can you provide the valuation status for H&R BLOCK INC?
ChartMill assigns a valuation rating of 9 / 10 to H&R BLOCK INC (HRB). This can be considered as Undervalued.
Can you provide the profitability details for H&R BLOCK INC?
H&R BLOCK INC (HRB) has a profitability rating of 8 / 10.
What are the PE and PB ratios of H&R BLOCK INC (HRB) stock?
The Price/Earnings (PE) ratio for H&R BLOCK INC (HRB) is 6.46 and the Price/Book (PB) ratio is -4.59.
What is the earnings growth outlook for H&R BLOCK INC?
The Earnings per Share (EPS) of H&R BLOCK INC (HRB) is expected to grow by 6.53% in the next year.