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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: Mar 29, 2024

Uncover the potential of H&R BLOCK INC (NYSE:HRB) as our stock screener's choice for an undervalued stock. NYSE:HRB maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

ChartMill's Evaluation of 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:

  • 81.25% of the companies in the same industry are more expensive than HRB, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.48. HRB is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 10.47, the valuation of HRB can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, HRB is valued cheaper than 89.06% of the companies in the same industry.
  • HRB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
  • Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, HRB is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
  • The decent profitability rating of HRB may justify a higher PE ratio.

Exploring NYSE:HRB's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:HRB has earned a 7 out of 10:

  • HRB has a better Return On Assets (21.18%) than 95.31% 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 95.31% 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 15.19%.
  • 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 better Profit Margin (16.86%) than 93.75% of its industry peers.
  • With an excellent Operating Margin value of 21.99%, HRB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.

Understanding NYSE:HRB's Health Score

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:HRB scores a 5 out of 10:

  • Looking at the Altman-Z score, with a value of 2.97, HRB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • The Debt to FCF ratio of HRB is 3.82, which is a good value as it means it would take HRB, 3.82 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.82, HRB is in the better half of the industry, outperforming 73.44% of the companies in the same industry.

Growth Assessment of NYSE:HRB

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:HRB has received a 5 out of 10:

  • The Earnings Per Share has grown by an impressive 23.58% over the past year.
  • HRB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.74% yearly.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

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

Keep in mind

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.