H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA - NYSE:HRB - US0936711052 - Common Stock
50.83 USD
-0.51 (-0.99%)
We assign a fundamental rating of 7 out of 10 to HRB. HRB was compared to 74 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 is valued quite cheap, while showing a decent growth score. This is a good combination! HRB also has an excellent dividend rating. This makes HRB very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HRB was profitable.
HRB had a positive operating cash flow in the past year.
HRB had positive earnings in each of the past 5 years.
Each year in the past 5 years HRB had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 18.40%, HRB belongs to the best of the industry, outperforming 93.24% of the companies in the same industry.
With an excellent Return On Equity value of 675.51%, HRB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HRB has a Return On Invested Capital of 32.95%. This is amongst the best in the industry. HRB outperforms 98.65% 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 9.88%.
The 3 year average ROIC (29.50%) for HRB is below the current ROIC(32.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.4% | ||
| ROE | 675.51% | ||
| ROIC | 32.95% |
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 15.97% is amongst the best of the industry. HRB outperforms 86.49% of its industry peers.
HRB's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 22.01%, HRB belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
HRB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.53%, HRB is in line with its industry, outperforming 50.00% of the companies in the same industry.
HRB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.01% | ||
| PM (TTM) | 15.97% | ||
| GM | 44.53% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HRB is creating value.
The number of shares outstanding for HRB has been reduced compared to 1 year ago.
The number of shares outstanding for HRB has been reduced compared to 5 years ago.
HRB has a better debt/assets ratio than last year.
2.2 Solvency
HRB has an Altman-Z score of 3.24. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.24, HRB is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
HRB has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as HRB would need 2.49 years to pay back of all of its debts.
HRB's Debt to FCF ratio of 2.49 is fine compared to the rest of the industry. HRB outperforms 75.68% of its industry peers.
A Debt/Equity ratio of 12.86 is on the high side and indicates that HRB has dependencies on debt financing.
HRB has a Debt to Equity ratio of 12.86. This is amonst the worse of the industry: HRB underperforms 83.78% of its industry peers.
Although HRB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.86 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 3.24 |
ROIC/WACC4.21
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.90 indicates that HRB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, HRB is doing worse than 64.86% of the companies in the same industry.
HRB has a Quick Ratio of 0.90. 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 0.90. This is in the lower half of the industry: HRB underperforms 63.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
HRB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.32%.
HRB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.89% yearly.
The Revenue has decreased by -0.87% 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)5.32%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%20.11%
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%4.55%
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 12.47% on average per year.
The Revenue is expected to grow by 3.32% on average over the next years.
EPS Next Y6.74%
EPS Next 2Y7.99%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue Next Year4.28%
Revenue Next 2Y3.76%
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.
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
A Price/Earnings ratio of 10.70 indicates a reasonable valuation of HRB.
Compared to the rest of the industry, the Price/Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 87.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, HRB is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.03, the valuation of HRB can be described as very reasonable.
93.24% of the companies in the same industry are more expensive than HRB, based on the Price/Forward Earnings ratio.
HRB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 82.43% of the companies listed in the same industry.
HRB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRB is cheaper than 87.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.37 | ||
| EV/EBITDA | 7.82 |
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.
A more expensive valuation may be justified as HRB's earnings are expected to grow with 12.47% in the coming years.
PEG (NY)1.59
PEG (5Y)0.24
EPS Next 2Y7.99%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
HRB has a Yearly Dividend Yield of 3.22%. Purely for dividend investing, there may be better candidates out there.
HRB's Dividend Yield is rather good when compared to the industry average which is at 3.04. HRB pays more dividend than 97.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HRB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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 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
32.86% 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.
DP32.86%
EPS Next 2Y7.99%
EPS Next 3Y12.47%
NYSE:HRB (9/18/2025, 3:05:03 PM)
50.83
-0.51 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners97.8%
Inst Owner Change-5.07%
Ins Owners0.85%
Ins Owner Change2.79%
Market Cap6.81B
Analysts50.91
Price Target56.1 (10.37%)
Short Float %7.88%
Short Ratio6.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP32.86%
Div Incr Years9
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.81%
Min EPS beat(2)-20.65%
Max EPS beat(2)3.03%
EPS beat(4)2
Avg EPS beat(4)-5.84%
Min EPS beat(4)-20.65%
Max EPS beat(4)3.03%
EPS beat(8)6
Avg EPS beat(8)2.12%
EPS beat(12)9
Avg EPS beat(12)3.02%
EPS beat(16)13
Avg EPS beat(16)6.53%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)0.31%
Max Revenue beat(2)2.3%
Revenue beat(4)3
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)2.3%
Revenue beat(8)6
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)1.47%
Revenue beat(16)12
Avg Revenue beat(16)2.69%
PT rev (1m)-14.06%
PT rev (3m)-14.06%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)0.55%
EPS NY rev (1m)-2.43%
EPS NY rev (3m)-2.43%
Revenue NQ rev (1m)1.3%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)1.5%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 10.03 | ||
| P/S | 1.81 | ||
| P/FCF | 11.37 | ||
| P/OCF | 10 | ||
| P/B | 76.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.82 |
EPS(TTM)4.75
EY9.34%
EPS(NY)5.07
Fwd EY9.97%
FCF(TTM)4.47
FCFY8.8%
OCF(TTM)5.08
OCFY10%
SpS28.08
BVpS0.66
TBVpS-7.26
PEG (NY)1.59
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.4% | ||
| ROE | 675.51% | ||
| ROCE | 42.13% | ||
| ROIC | 32.95% | ||
| ROICexc | 65.95% | ||
| ROICexgc | N/A | ||
| OM | 22.01% | ||
| PM (TTM) | 15.97% | ||
| GM | 44.53% | ||
| FCFM | 15.92% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.86 | ||
| Debt/FCF | 2.49 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 70.22% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | 11.09 | ||
| Cash Conversion | 72.07% | ||
| Profit Quality | 99.73% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 3.24 |
F-Score7
WACC7.83%
ROIC/WACC4.21
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)5.32%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%20.11%
EPS Next Y6.74%
EPS Next 2Y7.99%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.87%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%4.55%
Revenue Next Year4.28%
Revenue Next 2Y3.76%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y38.23%
EBIT growth 3Y3.59%
EBIT growth 5Y35.23%
EBIT Next Year15.26%
EBIT Next 3Y8.21%
EBIT Next 5YN/A
FCF growth 1Y-8.88%
FCF growth 3Y-7.08%
FCF growth 5Y85.45%
OCF growth 1Y-5.55%
OCF growth 3Y-5.57%
OCF growth 5Y44.25%