NYSE:HRB stands out as a stock that provides good value for the fundamentals it showcases.

Our stock screener has spotted H&R BLOCK INC (NYSE:HRB) as an undervalued stock with solid fundamentals. NYSE:HRB shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Looking at the Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:HRB has achieved a 7 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 87.50% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of HRB to the average of the S&P500 Index (26.08), we can say HRB is valued rather cheaply.
• A Price/Forward Earnings ratio of 10.29 indicates a reasonable valuation of HRB.
• 92.19% of the companies in the same industry are more expensive than HRB, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.99, HRB is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
• HRB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRB is cheaper than 90.63% of the companies in the same industry.
• The decent profitability rating of HRB may justify a higher PE ratio.

Exploring NYSE:HRB's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HRB, the assigned 7 is a significant indicator of profitability:

• With an excellent Return On Assets value of 22.16%, HRB belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 35.88%, HRB belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 9.48%.
• The last Return On Invested Capital (35.88%) for HRB is above the 3 year average (27.02%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 16.01%, HRB belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
• With an excellent Operating Margin value of 21.62%, HRB belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.

Health Insights: NYSE:HRB

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HRB has received a 5 out of 10:

• HRB has an Altman-Z score of 3.54. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
• HRB has a Altman-Z score of 3.54. This is amongst the best in the industry. HRB outperforms 81.25% of its industry peers.
• HRB has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as HRB would need 2.01 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.01, HRB belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.

Deciphering NYSE:HRB's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:HRB scores a 5 out of 10:

• HRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.50%, which is quite good.
• HRB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.99% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of HRB contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.