News Image

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

By Mill Chart

Last update: Apr 29, 2024

Take a closer look at H&R BLOCK INC (NYSE:HRB), a remarkable value stock uncovered by our stock screener. NYSE:HRB excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Assessment of NYSE:HRB

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:HRB, the assigned 8 reflects its valuation:

  • Based on the Price/Earnings ratio of 11.83, the valuation of HRB can be described as reasonable.
  • HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 82.81% of the companies in the same industry.
  • HRB is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 9.91, which indicates a very decent valuation of HRB.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 89.06% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.35. HRB is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, HRB is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRB indicates a rather cheap valuation: HRB is cheaper than 89.06% of the companies listed in the same industry.
  • 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:

  • HRB has a better Return On Assets (21.18%) than 95.31% of its industry peers.
  • HRB's Return On Invested Capital of 30.99% is amongst the best of the industry. HRB outperforms 95.31% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 15.01%.
  • 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.
  • With an excellent Profit Margin value of 16.86%, HRB belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
  • HRB has a Operating Margin of 21.99%. This is amongst the best in the industry. HRB outperforms 87.50% of its industry peers.

A Closer Look at Health for 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 (2.90) than 75.00% of its industry peers.
  • 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.
  • The Debt to FCF ratio of HRB (3.82) is better than 71.88% of its industry peers.

Understanding NYSE:HRB's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:HRB has earned a 5 for growth:

  • 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 10.74% on average per year.
  • 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.


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.