H&R BLOCK INC (HRB) Fundamental Analysis & Valuation
NYSE:HRB • US0936711052
30.91 USD
-1.35 (-4.18%)
Last: Mar 9, 2026, 09:49 AM
This HRB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to HRB. HRB was compared to 74 industry peers in the Diversified Consumer Services industry. HRB scores excellent on profitability, but there are some minor concerns on its financial health. HRB may be a bit undervalued, certainly considering the very reasonable score on growth Finally HRB also has an excellent dividend rating. These ratings could make HRB a good candidate for value and dividend investing.
1. HRB Profitability Analysis
1.1 Basic Checks
- HRB had positive earnings in the past year.
- In the past year HRB had a positive cash flow from operations.
- Each year in the past 5 years HRB has been profitable.
- In the past 5 years HRB always reported a positive cash flow from operatings.
1.2 Ratios
- HRB has a Return On Assets of 20.77%. This is amongst the best in the industry. HRB outperforms 95.95% of its industry peers.
- With an excellent Return On Invested Capital value of 29.00%, HRB belongs to the best of the industry, outperforming 98.65% 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 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.77% | ||
| ROE | N/A | ||
| ROIC | 29% |
ROA(3y)18.28%
ROA(5y)17.52%
ROE(3y)1016.86%
ROE(5y)695.21%
ROIC(3y)29.5%
ROIC(5y)27.67%
1.3 Margins
- HRB has a better Profit Margin (16.05%) than 87.84% of its industry peers.
- HRB's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 22.26%, HRB belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
- HRB's Operating Margin has improved in the last couple of years.
- HRB's Gross Margin of 44.17% is in line compared to the rest of the industry. HRB outperforms 47.30% of its industry peers.
- HRB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.26% | ||
| PM (TTM) | 16.05% | ||
| GM | 44.17% |
OM growth 3Y0.78%
OM growth 5Y25.98%
PM growth 3Y0.25%
PM growth 5YN/A
GM growth 3Y-0.84%
GM growth 5Y4.86%
2. HRB Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HRB is creating value.
- HRB has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for HRB has been reduced compared to 5 years ago.
- The debt/assets ratio for HRB has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.54 indicates that HRB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- HRB's Altman-Z score of 2.54 is fine compared to the rest of the industry. HRB outperforms 70.27% of its industry peers.
- The Debt to FCF ratio of HRB is 4.65, which is a neutral value as it means it would take HRB, 4.65 years of fcf income to pay off all of its debts.
- HRB has a Debt to FCF ratio of 4.65. This is in the better half of the industry: HRB outperforms 74.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.54 |
ROIC/WACC3.54
WACC8.19%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that HRB should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.29, HRB is in line with its industry, outperforming 55.41% of the companies in the same industry.
- HRB has a Quick Ratio of 1.29. This is a normal value and indicates that HRB is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.29, HRB is in line with its industry, outperforming 59.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. HRB Growth Analysis
3.1 Past
- HRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.30%, which is quite good.
- The Earnings Per Share has been growing by 43.89% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 4.70% in the past year.
- Measured over the past years, HRB shows a small growth in Revenue. The Revenue has been growing by 7.34% on average per year.
EPS 1Y (TTM)17.3%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-6.36%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.05%
3.2 Future
- Based on estimates for the next years, HRB will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.05% on average per year.
- HRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y6.53%
EPS Next 2Y8.9%
EPS Next 3Y16.05%
EPS Next 5YN/A
Revenue Next Year4.36%
Revenue Next 2Y3.78%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. HRB Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 6.70 indicates a rather cheap valuation of HRB.
- HRB's Price/Earnings ratio is rather cheap when compared to the industry. HRB is cheaper than 90.54% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HRB to the average of the S&P500 Index (26.29), we can say HRB is valued rather cheaply.
- A Price/Forward Earnings ratio of 5.49 indicates a rather cheap valuation of HRB.
- 97.30% of the companies in the same industry are more expensive than HRB, based on the Price/Forward Earnings ratio.
- HRB is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 5.49 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRB indicates a somewhat cheap valuation: HRB is cheaper than 79.73% of the companies listed in the same industry.
- HRB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HRB is cheaper than 93.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of HRB may justify a higher PE ratio.
- HRB's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)0.15
EPS Next 2Y8.9%
EPS Next 3Y16.05%
5. HRB Dividend Analysis
5.1 Amount
- HRB has a Yearly Dividend Yield of 5.30%, which is a nice return.
- In the last 3 months the price of HRB has falen by -23.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 0.40, HRB pays a better dividend. On top of this HRB pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
5.2 History
- The dividend of HRB is nicely growing with an annual growth rate of 6.79%!
- HRB has paid a dividend for at least 10 years, which is a reliable track record.
- HRB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.79%
Div Incr Years9
Div Non Decr Years27
5.3 Sustainability
- HRB pays out 33.68% of its income as dividend. This is a sustainable payout ratio.
- HRB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.68%
EPS Next 2Y8.9%
EPS Next 3Y16.05%
HRB Fundamentals: All Metrics, Ratios and Statistics
NYSE:HRB (3/9/2026, 9:49:09 AM)
30.91
-1.35 (-4.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)05-05 2026-05-05
Inst Owners95.55%
Inst Owner Change-2.13%
Ins Owners0.94%
Ins Owner Change-0.27%
Market Cap3.92B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target41.82 (35.3%)
Short Float %10.57%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.3% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.68%
Div Incr Years9
Div Non Decr Years27
Ex-Date03-04 2026-03-04 (0.42)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.1%
Min EPS beat(2)2.05%
Max EPS beat(2)12.15%
EPS beat(4)3
Avg EPS beat(4)-0.85%
Min EPS beat(4)-20.65%
Max EPS beat(4)12.15%
EPS beat(8)6
Avg EPS beat(8)0.53%
EPS beat(12)9
Avg EPS beat(12)2.7%
EPS beat(16)13
Avg EPS beat(16)4.54%
Revenue beat(2)2
Avg Revenue beat(2)2.69%
Min Revenue beat(2)0.7%
Max Revenue beat(2)4.67%
Revenue beat(4)4
Avg Revenue beat(4)2%
Min Revenue beat(4)0.31%
Max Revenue beat(4)4.67%
Revenue beat(8)7
Avg Revenue beat(8)1.26%
Revenue beat(12)9
Avg Revenue beat(12)1.19%
Revenue beat(16)12
Avg Revenue beat(16)2.03%
PT rev (1m)-25.45%
PT rev (3m)-25.45%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0.6%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 5.49 | ||
| P/S | 1.03 | ||
| P/FCF | 7.48 | ||
| P/OCF | 6.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.42 |
EPS(TTM)4.61
EY14.91%
EPS(NY)5.63
Fwd EY18.22%
FCF(TTM)4.13
FCFY13.38%
OCF(TTM)4.78
OCFY15.46%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.03
PEG (5Y)0.15
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.77% | ||
| ROE | N/A | ||
| ROCE | 37.08% | ||
| ROIC | 29% | ||
| ROICexc | 34.26% | ||
| ROICexgc | 78.62% | ||
| OM | 22.26% | ||
| PM (TTM) | 16.05% | ||
| GM | 44.17% | ||
| FCFM | 13.83% |
ROA(3y)18.28%
ROA(5y)17.52%
ROE(3y)1016.86%
ROE(5y)695.21%
ROIC(3y)29.5%
ROIC(5y)27.67%
ROICexc(3y)56.68%
ROICexc(5y)50.15%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)37.72%
ROCE(5y)35.37%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y16.18%
ROICexc growth 5Y32.13%
OM growth 3Y0.78%
OM growth 5Y25.98%
PM growth 3Y0.25%
PM growth 5YN/A
GM growth 3Y-0.84%
GM growth 5Y4.86%
F-Score5
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 69.36% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 11.05 | ||
| Cash Conversion | 63% | ||
| Profit Quality | 86.14% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 2.54 |
F-Score5
WACC8.19%
ROIC/WACC3.54
Cap/Depr(3y)58.64%
Cap/Depr(5y)50.63%
Cap/Sales(3y)1.98%
Cap/Sales(5y)1.86%
Profit Quality(3y)115.52%
Profit Quality(5y)116.11%
High Growth Momentum
Growth
EPS 1Y (TTM)17.3%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-6.36%
EPS Next Y6.53%
EPS Next 2Y8.9%
EPS Next 3Y16.05%
EPS Next 5YN/A
Revenue 1Y (TTM)4.7%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.05%
Revenue Next Year4.36%
Revenue Next 2Y3.78%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y11.39%
EBIT growth 3Y3.59%
EBIT growth 5Y35.23%
EBIT Next Year15.15%
EBIT Next 3Y8.27%
EBIT Next 5YN/A
FCF growth 1Y-12.54%
FCF growth 3Y-7.08%
FCF growth 5Y85.45%
OCF growth 1Y-8.24%
OCF growth 3Y-5.57%
OCF growth 5Y44.25%
H&R BLOCK INC / HRB FAQ
What is the fundamental rating for HRB stock?
ChartMill assigns a fundamental rating of 7 / 10 to HRB.
What is the valuation status for HRB stock?
ChartMill assigns a valuation rating of 9 / 10 to H&R BLOCK INC (HRB). This can be considered as Undervalued.
How profitable is H&R BLOCK INC (HRB) stock?
H&R BLOCK INC (HRB) has a profitability rating of 8 / 10.
Can you provide the financial health for HRB stock?
The financial health rating of H&R BLOCK INC (HRB) is 5 / 10.
Can you provide the expected EPS growth for HRB stock?
The Earnings per Share (EPS) of H&R BLOCK INC (HRB) is expected to grow by 6.53% in the next year.