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, 8:10:18 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 74 industry peers in the Diversified Consumer Services industry. While HRB belongs to the best of the industry regarding profitability, 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. This makes HRB very considerable 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.
- Each year in the past 5 years HRB has been profitable.
- In the past 5 years HRB always reported a positive cash flow from operatings.
1.2 Ratios
- HRB has a better Return On Assets (20.77%) than 95.95% of its industry peers.
- HRB has a Return On Invested Capital of 29.00%. This is amongst the best in the industry. HRB outperforms 98.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 16.05% is amongst the best of 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.
- HRB's Operating Margin of 22.26% is amongst the best of the industry. HRB outperforms 89.19% of its industry peers.
- 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.
- In the last couple of years the Gross Margin of HRB has grown nicely.
| 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
- 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 2.52. 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.
- With a decent Altman-Z score value of 2.52, HRB is doing good in the industry, outperforming 70.27% of the companies in the same industry.
- 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 74.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.52 |
ROIC/WACC3.55
WACC8.18%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
- HRB has a Current ratio (1.29) which 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 in line compared to the rest of the industry. HRB outperforms 59.46% of its industry peers.
| 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.
- 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.
- The Revenue has been growing slightly by 7.34% on average over the past years.
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.
- Based on estimates for the next years, HRB will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
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 6.72.
- HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 91.89% of the companies in the same industry.
- HRB is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 5.50 indicates a rather cheap valuation of HRB.
- HRB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 97.30% 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 24.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 5.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than 79.73% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HRB is valued cheaper than 93.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.49 | ||
| EV/EBITDA | 6.25 |
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 16.05% in the coming years.
PEG (NY)1.03
PEG (5Y)0.15
EPS Next 2Y8.9%
EPS Next 3Y16.05%
5. HRB Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 5.30%, HRB is a good candidate for dividend investing.
- 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.
- 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 | 5.3% |
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 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.
- 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 | 6.25 |
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 | 2.52 |
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.