H&R BLOCK INC (HRB)
US0936711052 - Common Stock
HRB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 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. HRB also has an excellent dividend rating. These ratings could make HRB a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year HRB was profitable.
In the past year HRB had a positive cash flow from operations.
HRB had positive earnings in 4 of the past 5 years.
HRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HRB (16.49%) is better than 90.91% of its industry peers.
HRB has a better Return On Invested Capital (25.89%) than 95.45% 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 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.49% | ||
| ROE | N/A | ||
| ROIC | 25.89% |
ROA(3y)17.74%
ROA(5y)13.8%
ROE(3y)877.58%
ROE(5y)557.23%
ROIC(3y)27.24%
ROIC(5y)22.03%
1.3 Margins
Looking at the Profit Margin, with a value of 11.05%, HRB is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
In the last couple of years the Profit Margin of HRB has grown nicely.
HRB has a better Operating Margin (15.17%) than 80.30% of its industry peers.
HRB's Operating Margin has improved in the last couple of years.
The Gross Margin of HRB (40.56%) is worse than 60.61% of its industry peers.
In the last couple of years the Gross Margin of HRB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.17% | ||
| PM (TTM) | 11.05% | ||
| GM | 40.56% |
OM growth 3Y-0.35%
OM growth 5Y2.31%
PM growth 3Y-1.2%
PM growth 5Y3.82%
GM growth 3Y-0.88%
GM growth 5Y0.73%
2. Health
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.
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
An Altman-Z score of 3.45 indicates that HRB is not in any danger for bankruptcy at the moment.
HRB has a Altman-Z score of 3.45. This is in the better half of the industry: HRB outperforms 77.27% of its industry peers.
HRB has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as HRB would need 2.27 years to pay back of all of its debts.
HRB's Debt to FCF ratio of 2.27 is fine compared to the rest of the industry. HRB outperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 3.45 |
ROIC/WACC3.12
WACC8.3%
2.3 Liquidity
HRB has a Current Ratio of 0.77. This is a bad value and indicates that HRB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.77, HRB is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
A Quick Ratio of 0.77 indicates that HRB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, HRB is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
HRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.62%, which is quite good.
Measured over the past years, HRB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.54% on average per year.
Looking at the last year, HRB shows a quite strong growth in Revenue. The Revenue has grown by 9.44% in the last year.
The Revenue has been growing slightly by 3.13% on average over the past years.
EPS 1Y (TTM)14.62%
EPS 3Y9.34%
EPS 5Y15.54%
EPS Q2Q%-11.43%
Revenue 1Y (TTM)9.44%
Revenue growth 3Y1.88%
Revenue growth 5Y3.13%
Sales Q2Q%5.45%
3.2 Future
The Earnings Per Share is expected to grow by 8.29% 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 2.77% on average per year.
EPS Next Y18.47%
EPS Next 2Y7.29%
EPS Next 3Y8.29%
EPS Next 5YN/A
Revenue Next Year4.02%
Revenue Next 2Y3.31%
Revenue Next 3Y2.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HRB is valuated correctly with a Price/Earnings ratio of 12.37.
Based on the Price/Earnings ratio, HRB is valued cheaper than 86.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. HRB is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.46 indicates a reasonable valuation of HRB.
HRB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. HRB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than the industry average as 65.15% of the companies are valued more expensively.
89.39% 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 | 11.31 | ||
| EV/EBITDA | 12.21 |
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.
The decent profitability rating of HRB may justify a higher PE ratio.
PEG (NY)0.67
PEG (5Y)0.8
EPS Next 2Y7.29%
EPS Next 3Y8.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.78%, HRB has a reasonable but not impressive dividend return.
HRB's Dividend Yield is rather good when compared to the industry average which is at 4.35. HRB pays more dividend than 93.94% of the companies in the same industry.
HRB's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
The dividend of HRB has a limited annual growth rate of 4.72%.
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)4.72%
Div Incr Years9
Div Non Decr Years27
5.3 Sustainability
43.15% of the earnings are spent on dividend by HRB. This is a bit on the high side, but may be sustainable.
The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.15%
EPS Next 2Y7.29%
EPS Next 3Y8.29%
H&R BLOCK INC
NYSE:HRB (12/24/2024, 8:19:32 PM)
After market: 54.29 0 (0%)54.29
-0.14 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners95.79%
Inst Owner Change-0.62%
Ins Owners1.08%
Ins Owner Change-2.89%
Market Cap7.44B
Analysts77.5
Price Target63.92 (17.74%)
Short Float %8.93%
Short Ratio9.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Dividend Growth(5Y)4.72%
DP43.15%
Div Incr Years9
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.61%
Min EPS beat(2)1.83%
Max EPS beat(2)7.39%
EPS beat(4)4
Avg EPS beat(4)8.68%
Min EPS beat(4)1.83%
Max EPS beat(4)19.52%
EPS beat(8)7
Avg EPS beat(8)6.48%
EPS beat(12)11
Avg EPS beat(12)8.51%
EPS beat(16)12
Avg EPS beat(16)-0.06%
Revenue beat(2)2
Avg Revenue beat(2)2.12%
Min Revenue beat(2)1.86%
Max Revenue beat(2)2.37%
Revenue beat(4)4
Avg Revenue beat(4)2.52%
Min Revenue beat(4)1.2%
Max Revenue beat(4)4.64%
Revenue beat(8)6
Avg Revenue beat(8)2.55%
Revenue beat(12)9
Avg Revenue beat(12)2.56%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.3%
PT rev (3m)3.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.7%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.46 | ||
| P/S | 1.96 | ||
| P/FCF | 11.31 | ||
| P/OCF | 10.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.21 |
EPS(TTM)4.39
EY8.09%
EPS(NY)5.19
Fwd EY9.56%
FCF(TTM)4.8
FCFY8.84%
OCF(TTM)5.31
OCFY9.77%
SpS27.76
BVpS-2.69
TBVpS-10.33
PEG (NY)0.67
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.49% | ||
| ROE | N/A | ||
| ROCE | 32.89% | ||
| ROIC | 25.89% | ||
| ROICexc | 33.94% | ||
| ROICexgc | 156.62% | ||
| OM | 15.17% | ||
| PM (TTM) | 11.05% | ||
| GM | 40.56% | ||
| FCFM | 17.29% |
ROA(3y)17.74%
ROA(5y)13.8%
ROE(3y)877.58%
ROE(5y)557.23%
ROIC(3y)27.24%
ROIC(5y)22.03%
ROICexc(3y)49.03%
ROICexc(5y)40.5%
ROICexgc(3y)423.16%
ROICexgc(5y)N/A
ROCE(3y)34.61%
ROCE(5y)27.98%
ROICexcg growth 3Y48.94%
ROICexcg growth 5YN/A
ROICexc growth 3Y11.08%
ROICexc growth 5Y-2.4%
OM growth 3Y-0.35%
OM growth 5Y2.31%
PM growth 3Y-1.2%
PM growth 5Y3.82%
GM growth 3Y-0.88%
GM growth 5Y0.73%
F-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 57.73% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 7.62 | ||
| Cash Conversion | 104.29% | ||
| Profit Quality | 156.44% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.45 |
F-Score6
WACC8.3%
ROIC/WACC3.12
Cap/Depr(3y)49.77%
Cap/Depr(5y)46.23%
Cap/Sales(3y)1.85%
Cap/Sales(5y)2.04%
Profit Quality(3y)127.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.62%
EPS 3Y9.34%
EPS 5Y15.54%
EPS Q2Q%-11.43%
EPS Next Y18.47%
EPS Next 2Y7.29%
EPS Next 3Y8.29%
EPS Next 5YN/A
Revenue 1Y (TTM)9.44%
Revenue growth 3Y1.88%
Revenue growth 5Y3.13%
Sales Q2Q%5.45%
Revenue Next Year4.02%
Revenue Next 2Y3.31%
Revenue Next 3Y2.77%
Revenue Next 5YN/A
EBIT growth 1Y-23.23%
EBIT growth 3Y1.52%
EBIT growth 5Y5.51%
EBIT Next Year12.2%
EBIT Next 3Y5.67%
EBIT Next 5YN/A
FCF growth 1Y-10.73%
FCF growth 3Y4.67%
FCF growth 5Y5.16%
OCF growth 1Y-9.02%
OCF growth 3Y4.82%
OCF growth 5Y3.52%