H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRB - US0936711052 - Common Stock
40.52 USD
+0.31 (+0.77%)
40.52 USD
0 (0%)
Taking everything into account, HRB scores 6 out of 10 in our fundamental rating. HRB was compared to 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. Finally HRB also has an excellent dividend rating. These ratings would make HRB suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- HRB had positive earnings in the past year.
- HRB had a positive operating cash flow in the past year.
- In the past 5 years HRB has always been profitable.
- In the past 5 years HRB always reported a positive cash flow from operatings.
1.2 Ratios
- HRB has a Return On Assets of 23.16%. This is amongst the best in the industry. HRB outperforms 96.05% of its industry peers.
- HRB has a better Return On Invested Capital (35.30%) 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 10.15%.
- 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
- With an excellent Profit Margin value of 16.10%, HRB belongs to the best of the industry, outperforming 85.53% of the companies in the same industry.
- In the last couple of years the Profit Margin of HRB has remained more or less at the same level.
- With an excellent Operating Margin value of 22.52%, HRB belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
- In the last couple of years the Operating Margin of HRB has grown nicely.
- With a Gross Margin value of 44.56%, HRB perfoms like the industry average, outperforming 47.37% of the companies in the same 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
- HRB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- HRB has less shares outstanding than it did 1 year ago.
- HRB has less shares outstanding than it did 5 years ago.
- HRB has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.06 indicates that HRB is not in any danger for bankruptcy at the moment.
- HRB's Altman-Z score of 3.06 is fine compared to the rest of the industry. HRB outperforms 73.68% of its industry peers.
- The Debt to FCF ratio of HRB is 3.01, which is a good value as it means it would take HRB, 3.01 years of fcf income to pay off all of its debts.
- HRB has a Debt to FCF ratio of 3.01. This is in the better half of the industry: HRB outperforms 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 3.06 |
ROIC/WACC4.52
WACC7.81%
2.3 Liquidity
- A Current Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.76, HRB is doing worse than 71.05% of the companies in the same industry.
- A Quick Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.76, HRB is doing worse than 67.11% of the companies in the same industry.
| 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.
- HRB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.34% yearly.
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
- The Earnings Per Share is expected to grow by 11.96% 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 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.
- 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
- HRB is valuated reasonably with a Price/Earnings ratio of 8.58.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, HRB is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.29, the valuation of HRB can be described as very cheap.
- Based on the Price/Forward Earnings ratio, HRB is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, HRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 7.29 |
4.2 Price Multiples
- HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 78.95% of the companies in the same industry.
- 93.42% 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 | 8.89 | ||
| EV/EBITDA | 6.67 |
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.
PEG (NY)1.7
PEG (5Y)0.2
EPS Next 2Y8.21%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- HRB has a Yearly Dividend Yield of 3.94%.
- The stock price of HRB dropped by -22.39% 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 0.36. HRB pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.86, HRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
5.2 History
- The dividend of HRB is nicely growing with an annual growth rate of 6.79%!
- 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
5.3 Sustainability
- HRB pays out 33.41% 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.
DP33.41%
EPS Next 2Y8.21%
EPS Next 3Y11.96%
40.52
+0.31 (+0.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-10 2026-02-10
Inst Owners97.19%
Inst Owner Change-0.01%
Ins Owners0.91%
Ins Owner Change3.77%
Market Cap5.12B
Revenue(TTM)3.77B
Net Income(TTM)607.22M
Analysts50.91
Price Target56.1 (38.45%)
Short Float %8.55%
Short Ratio6.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 | 8.58 | ||
| Fwd PE | 7.29 | ||
| P/S | 1.36 | ||
| P/FCF | 8.89 | ||
| P/OCF | 7.85 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.67 |
EPS(TTM)4.72
EY11.65%
EPS(NY)5.56
Fwd EY13.73%
FCF(TTM)4.56
FCFY11.25%
OCF(TTM)5.16
OCFY12.74%
SpS29.82
BVpS-4.36
TBVpS-12.68
PEG (NY)1.7
PEG (5Y)0.2
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 | 3.06 |
F-Score6
WACC7.81%
ROIC/WACC4.52
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.