H&R BLOCK INC (HRB) Fundamental Analysis & Valuation

NYSE:HRB • US0936711052

Current stock price

30.96 USD
-0.62 (-1.96%)
At close:
30.96 USD
0 (0%)
After Hours:

This HRB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. HRB Profitability Analysis

1.1 Basic Checks

  • HRB had positive earnings in the past year.
  • HRB had a positive operating cash flow in the past year.
  • Each year in the past 5 years HRB has been profitable.
  • HRB had a positive operating cash flow in each of the past 5 years.
HRB Yearly Net Income VS EBIT VS OCF VS FCFHRB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

1.2 Ratios

  • HRB's Return On Assets of 20.77% is amongst the best of the industry. HRB outperforms 95.89% of its industry peers.
  • HRB has a better Return On Invested Capital (29.00%) than 98.63% 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 10.75%.
Industry RankSector 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%
HRB Yearly ROA, ROE, ROICHRB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 -500 1K 1.5K

1.3 Margins

  • HRB has a better Profit Margin (16.05%) than 87.67% of its industry peers.
  • HRB's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 22.26%, HRB belongs to the top of the industry, outperforming 89.04% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HRB has grown nicely.
  • HRB's Gross Margin of 44.17% is in line compared to the rest of the industry. HRB outperforms 45.21% of its industry peers.
  • In the last couple of years the Gross Margin of HRB has grown nicely.
Industry RankSector 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%
HRB Yearly Profit, Operating, Gross MarginsHRB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

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5

2. HRB Health Analysis

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.
  • HRB has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, HRB has an improved debt to assets ratio.
HRB Yearly Shares OutstandingHRB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
HRB Yearly Total Debt VS Total AssetsHRB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 2.53 indicates that HRB is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.53, HRB is doing good in the industry, outperforming 68.49% 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.
  • With a decent Debt to FCF ratio value of 4.65, HRB is doing good in the industry, outperforming 72.60% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.65
Altman-Z 2.53
ROIC/WACC3.41
WACC8.5%
HRB Yearly LT Debt VS Equity VS FCFHRB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.29, HRB perfoms like the industry average, outperforming 53.42% of the companies in the same industry.
  • A Quick Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
  • HRB has a Quick ratio (1.29) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.29
HRB Yearly Current Assets VS Current LiabilitesHRB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • Measured over the past years, HRB shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.89% on average per year.
  • The Revenue has been growing slightly by 4.70% in the past year.
  • HRB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.34% yearly.
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

  • HRB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.05% yearly.
  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
HRB Yearly Revenue VS EstimatesHRB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B
HRB Yearly EPS VS EstimatesHRB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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9

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 94.52% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of HRB to the average of the S&P500 Index (25.54), we can say HRB is valued rather cheaply.
  • A Price/Forward Earnings ratio of 5.50 indicates a rather cheap valuation of HRB.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 97.26% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of HRB to the average of the S&P500 Index (22.70), we can say HRB is valued rather cheaply.
Industry RankSector Rank
PE 6.72
Fwd PE 5.5
HRB Price Earnings VS Forward Price EarningsHRB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 82.19% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, HRB is valued cheaper than 91.78% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.49
EV/EBITDA 6.33
HRB Per share dataHRB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

  • HRB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of HRB may justify a higher PE ratio.
  • HRB's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)0.15
EPS Next 2Y8.9%
EPS Next 3Y16.05%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

9

5. HRB Dividend Analysis

5.1 Amount

  • HRB has a Yearly Dividend Yield of 5.44%, which is a nice return.
  • The stock price of HRB dropped by -27.85% 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.
  • HRB's Dividend Yield is rather good when compared to the industry average which is at 0.45. HRB pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, HRB pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.44%

5.2 History

  • On average, the dividend of HRB grows each year by 6.79%, which is quite nice.
  • HRB has paid a dividend for at least 10 years, which is 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
HRB Yearly Dividends per shareHRB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 33.68% 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.
DP33.68%
EPS Next 2Y8.9%
EPS Next 3Y16.05%
HRB Yearly Income VS Free CF VS DividendHRB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M
HRB Dividend Payout.HRB Dividend Payout, showing the Payout Ratio.HRB Dividend Payout.PayoutRetained Earnings

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HRB Fundamentals: All Metrics, Ratios and Statistics

H&R BLOCK INC

NYSE:HRB (3/24/2026, 4:20:05 PM)

After market: 30.96 0 (0%)

30.96

-0.62 (-1.96%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-03
Earnings (Next)05-05
Inst Owners95.55%
Inst Owner Change-2.13%
Ins Owners0.94%
Ins Owner Change-0.27%
Market Cap3.92B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target41.82 (35.08%)
Short Float %11.09%
Short Ratio5.5
Dividend
Industry RankSector Rank
Dividend Yield 5.44%
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.68%
Div Incr Years9
Div Non Decr Years27
Ex-Date03-04
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%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.6%
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 RankSector 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 6.33
EPS(TTM)4.61
EY14.89%
EPS(NY)5.63
Fwd EY18.2%
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 RankSector 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 RankSector 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 2.53
F-Score5
WACC8.5%
ROIC/WACC3.41
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.


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.