NYSE:HRB is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Mar 1, 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

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:HRB boasts a 7 out of 10:

HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 83.08% of the companies in the same industry.
HRB is valuated cheaply when we compare the Price/Earnings ratio to 26.09, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.42, which indicates a very decent valuation of HRB.
HRB's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 92.31% of the companies in the same industry.
HRB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.73.
Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than 72.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 86.15% of the companies are valued more expensively.
The decent profitability rating of HRB may justify a higher PE ratio.

Analyzing Profitability Metrics

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:

HRB has a better Return On Assets (21.18%) than 95.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.99%, HRB belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 14.10%.
The last Return On Invested Capital (30.99%) for HRB is above the 3 year average (27.02%), which is a sign of increasing profitability.
HRB has a Profit Margin of 16.86%. This is amongst the best in the industry. HRB outperforms 93.85% of its industry peers.
With an excellent Operating Margin value of 21.99%, HRB belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.

Health Assessment of NYSE:HRB

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:HRB has earned a 5 out of 10:

HRB has a better Altman-Z score (2.96) than 72.31% of its industry peers.
HRB has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as HRB would need 3.82 years to pay back of all of its debts.
HRB's Debt to FCF ratio of 3.82 is fine compared to the rest of the industry. HRB outperforms 75.38% of its industry peers.

Growth Assessment of NYSE:HRB

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:HRB has achieved a 5 out of 10:

The Earnings Per Share has grown by an impressive 23.58% 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.

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

Check the latest full fundamental report of HRB for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.