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

By Mill Chart

Last update: Feb 9, 2024

Our stock screening tool has pinpointed H&R BLOCK INC (NYSE:HRB) as an undervalued stock option. NYSE:HRB retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Exploring NYSE:HRB's 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 8 out of 10:

  • The Price/Earnings ratio is 11.93, which indicates a very decent valuation of HRB.
  • HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 84.38% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.01, HRB is valued rather cheaply.
  • HRB is valuated reasonably with a Price/Forward Earnings ratio of 9.73.
  • Based on the Price/Forward Earnings ratio, HRB is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 21.53. HRB is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than 78.13% of the companies in the same industry.
  • 90.63% of the companies in the same industry are more expensive than HRB, based on the Price/Free Cash Flow ratio.
  • The decent profitability rating of HRB may justify a higher PE ratio.

What does the Profitability looks like for NYSE:HRB

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 95.31% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 35.88%, HRB belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
  • HRB had an Average Return On Invested Capital over the past 3 years of 27.02%. This is significantly above the industry average of 14.60%.
  • The 3 year average ROIC (27.02%) for HRB is below the current ROIC(35.88%), indicating increased profibility in the last year.
  • With an excellent Profit Margin value of 16.01%, HRB belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
  • Looking at the Operating Margin, with a value of 21.62%, HRB belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.

Assessing Health Metrics for NYSE:HRB

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:HRB, the assigned 5 for health provides valuable insights:

  • HRB has an Altman-Z score of 3.46. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.46, HRB is doing good in the industry, outperforming 79.69% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of HRB (2.01) is better than 81.25% of its industry peers.

Evaluating Growth: NYSE:HRB

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:HRB, the assigned 5 reflects its growth potential:

  • The Earnings Per Share has grown by an nice 8.50% over the past year.
  • Based on estimates for the next years, HRB will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.99% on average per year.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of HRB

Keep in mind

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.

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H&R BLOCK INC

NYSE:HRB (5/24/2024, 7:04:00 PM)

After market: 50.65 0 (0%)

50.65

-1.92 (-3.65%)

HRB News

News Image4 days ago - ChartmillWhen you look at NYSE:HRB, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

When you look at H&R BLOCK INC (NYSE:HRB), it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

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