H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRB - US0936711052 - Common Stock
41.86 USD
+0.61 (+1.48%)
41.9221 USD
+0.06 (+0.15%)
We assign a fundamental rating of 6 out of 10 to HRB. HRB was compared to 76 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. Finally 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.
Each year in the past 5 years HRB has been profitable.
Each year in the past 5 years HRB had a positive operating cash flow.
1.2 Ratios
HRB has a better Return On Assets (23.16%) than 97.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 35.30%, HRB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HRB had an Average Return On Invested Capital over the past 3 years of 29.50%. This is significantly above the industry average of 8.97%.
The last Return On Invested Capital (35.30%) for HRB is above the 3 year average (29.50%), which is a sign of increasing profitability.
| 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 86.84% of its industry peers.
HRB's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 22.52%, HRB belongs to the best of the industry, outperforming 88.16% of the companies in the same industry.
In the last couple of years the Operating Margin of HRB has grown nicely.
HRB has a Gross Margin of 44.56%. This is comparable to the rest of the industry: HRB outperforms 44.74% of its industry peers.
HRB's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HRB is creating value.
HRB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HRB has been reduced compared to 5 years ago.
Compared to 1 year ago, HRB has an improved debt to assets ratio.
2.2 Solvency
HRB has an Altman-Z score of 3.09. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
HRB's Altman-Z score of 3.09 is fine compared to the rest of the industry. HRB outperforms 73.68% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.01, HRB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 3.09 |
ROIC/WACC4.55
WACC7.76%
2.3 Liquidity
A Current Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
HRB has a worse Current ratio (0.76) than 72.37% of its industry peers.
A Quick Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
The Quick ratio of HRB (0.76) is worse than 68.42% 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.
Measured over the past years, HRB shows a small growth in Revenue. The Revenue has been growing by 7.34% on average per year.
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
Based on estimates for the next years, HRB will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.96% on average per year.
The Revenue is expected to grow by 3.32% on average over the next years.
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
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.87, which indicates a very decent valuation of HRB.
Compared to the rest of the industry, the Price/Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 88.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, HRB is valued rather cheaply.
HRB is valuated cheaply with a Price/Forward Earnings ratio of 7.53.
Based on the Price/Forward Earnings ratio, HRB is valued cheaper than 96.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, HRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than 78.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 90.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.19 | ||
| EV/EBITDA | 6.8 |
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.
PEG (NY)1.76
PEG (5Y)0.2
EPS Next 2Y8.21%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.99%, HRB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.12, HRB pays a better dividend. On top of this HRB pays more dividend than 98.68% 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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 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
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%
41.86
+0.61 (+1.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners97%
Inst Owner Change-1.59%
Ins Owners0.91%
Ins Owner Change3.26%
Market Cap5.29B
Revenue(TTM)3.77B
Net Income(TTM)607.22M
Analysts50.91
Price Target56.1 (34.02%)
Short Float %10.06%
Short Ratio9.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.41%
Div Incr Years9
Div Non Decr Years27
Ex-Date
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)-0.27%
EPS NQ rev (3m)-3.14%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.53 | ||
| P/S | 1.4 | ||
| P/FCF | 9.19 | ||
| P/OCF | 8.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.8 |
EPS(TTM)4.72
EY11.28%
EPS(NY)5.56
Fwd EY13.29%
FCF(TTM)4.56
FCFY10.89%
OCF(TTM)5.16
OCFY12.33%
SpS29.82
BVpS-4.36
TBVpS-12.68
PEG (NY)1.76
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 | 3.09 |
F-Score6
WACC7.76%
ROIC/WACC4.55
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)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 of H&R BLOCK INC (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.
What is the expected EPS growth for H&R BLOCK INC (HRB) stock?
The Earnings per Share (EPS) of H&R BLOCK INC (HRB) is expected to grow by 5.04% in the next year.
Is the dividend of H&R BLOCK INC sustainable?
The dividend rating of H&R BLOCK INC (HRB) is 8 / 10 and the dividend payout ratio is 33.41%.