H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRB - US0936711052 - Common Stock
43.43 USD
-0.05 (-0.11%)
43.75 USD
+0.32 (+0.74%)
HRB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 76 industry peers in the Diversified Consumer Services industry. HRB scores excellent on profitability, but 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. This makes HRB very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
HRB had positive earnings in the past year.
In the past year HRB had a positive cash flow from operations.
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 23.16%, HRB belongs to the best of the industry, outperforming 96.05% of the companies in the same industry.
The Return On Invested Capital of HRB (35.30%) is better than 98.68% 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 10.55%.
The 3 year average ROIC (29.50%) for HRB is below the current ROIC(35.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | N/A | ||
| ROIC | 35.3% |
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 (16.10%) than 85.53% of its industry peers.
HRB's Profit Margin has been stable in the last couple of years.
HRB has a Operating Margin of 22.52%. This is amongst the best in the industry. HRB outperforms 86.84% of its industry peers.
HRB's Operating Margin has improved in the last couple of years.
The Gross Margin of HRB (44.56%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of HRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.52% | ||
| PM (TTM) | 16.1% | ||
| GM | 44.56% |
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
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 3.14. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.14, HRB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
HRB has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as HRB would need 3.01 years to pay back of all of its debts.
HRB has a better Debt to FCF ratio (3.01) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 3.14 |
ROIC/WACC4.54
WACC7.77%
2.3 Liquidity
HRB has a Current Ratio of 0.76. This is a bad value and indicates that HRB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HRB (0.76) is worse than 71.05% of its industry peers.
HRB has a Quick Ratio of 0.76. 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 worse Quick ratio (0.76) than 67.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.52% over the past year.
The Earnings Per Share has been growing by 43.89% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.88% in the past year.
The Revenue has been growing slightly by 7.34% on average over the past years.
EPS 1Y (TTM)7.52%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-2.56%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%5.03%
3.2 Future
HRB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.96% yearly.
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 Y5.04%
EPS Next 2Y8.21%
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
HRB is valuated reasonably with a Price/Earnings ratio of 9.20.
Compared to the rest of the industry, the Price/Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 85.53% of the companies listed in the same industry.
HRB is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.81 indicates a rather cheap valuation of HRB.
Based on the Price/Forward Earnings ratio, HRB is valued cheaper than 94.74% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HRB to the average of the S&P500 Index (23.57), we can say HRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than the industry average as 77.63% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 93.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HRB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)0.21
EPS Next 2Y8.21%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
HRB has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.32, HRB pays a better dividend. On top of this HRB pays more dividend than 98.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, HRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 Years9
Div Non Decr Years27
5.3 Sustainability
33.41% 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.
DP33.41%
EPS Next 2Y8.21%
EPS Next 3Y11.96%
43.43
-0.05 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners97.19%
Inst Owner Change0%
Ins Owners0.91%
Ins Owner Change3.26%
Market Cap5.49B
Revenue(TTM)3.77B
Net Income(TTM)607.22M
Analysts50.91
Price Target56.1 (29.17%)
Short Float %8.83%
Short Ratio7.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.41%
Div Incr Years9
Div Non Decr Years27
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.25%
Min EPS beat(2)-20.65%
Max EPS beat(2)12.15%
EPS beat(4)2
Avg EPS beat(4)-3.26%
Min EPS beat(4)-20.65%
Max EPS beat(4)12.15%
EPS beat(8)6
Avg EPS beat(8)2.71%
EPS beat(12)9
Avg EPS beat(12)3.23%
EPS beat(16)13
Avg EPS beat(16)5.57%
Revenue beat(2)2
Avg Revenue beat(2)1.5%
Min Revenue beat(2)0.7%
Max Revenue beat(2)2.3%
Revenue beat(4)3
Avg Revenue beat(4)0%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)2.3%
Revenue beat(8)7
Avg Revenue beat(8)1.26%
Revenue beat(12)9
Avg Revenue beat(12)1.7%
Revenue beat(16)12
Avg Revenue beat(16)1.92%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.2 | ||
| Fwd PE | 7.81 | ||
| P/S | 1.46 | ||
| P/FCF | 9.53 | ||
| P/OCF | 8.41 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.1 |
EPS(TTM)4.72
EY10.87%
EPS(NY)5.56
Fwd EY12.81%
FCF(TTM)4.56
FCFY10.49%
OCF(TTM)5.16
OCFY11.89%
SpS29.82
BVpS-4.36
TBVpS-12.68
PEG (NY)1.83
PEG (5Y)0.21
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | N/A | ||
| ROCE | 45.13% | ||
| ROIC | 35.3% | ||
| ROICexc | 44.13% | ||
| ROICexgc | 146.48% | ||
| OM | 22.52% | ||
| PM (TTM) | 16.1% | ||
| GM | 44.56% | ||
| FCFM | 15.28% |
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-Score6
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 65.42% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 10.19 | ||
| Cash Conversion | 67.55% | ||
| Profit Quality | 94.88% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.14 |
F-Score6
WACC7.77%
ROIC/WACC4.54
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)7.52%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-2.56%
EPS Next Y5.04%
EPS Next 2Y8.21%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%5.03%
Revenue Next Year4.25%
Revenue Next 2Y3.69%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y47.2%
EBIT growth 3Y3.59%
EBIT growth 5Y35.23%
EBIT Next Year14.81%
EBIT Next 3Y8.27%
EBIT Next 5YN/A
FCF growth 1Y-22.36%
FCF growth 3Y-7.08%
FCF growth 5Y85.45%
OCF growth 1Y-19.28%
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 6 / 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 5.04% in the next year.