H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HRB • US0936711052
29.83 USD
-2.8 (-8.58%)
At close: Feb 11, 2026
30.23 USD
+0.4 (+1.34%)
Pre-Market: 2/12/2026, 6:48:22 AM
We assign a fundamental rating of 7 out of 10 to HRB. HRB was compared to 75 industry peers in the Diversified Consumer Services industry. HRB scores excellent on profitability, but there are some minor concerns on its financial health. HRB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. HRB also has an excellent dividend rating. With these ratings, HRB could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- HRB had positive earnings in the past year.
- HRB had a positive operating cash flow in the past year.
- 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
- With an excellent Return On Assets value of 20.77%, HRB belongs to the best of the industry, outperforming 94.67% of the companies in the same industry.
- HRB has a better Return On Invested Capital (29.00%) than 98.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 10.20%.
| 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 Profit Margin of 16.05%. This is amongst the best in the industry. HRB outperforms 86.67% of its industry peers.
- HRB's Profit Margin has been stable in the last couple of years.
- HRB has a better Operating Margin (22.26%) than 86.67% of its industry peers.
- In the last couple of years the Operating Margin of HRB has grown nicely.
- HRB's Gross Margin of 44.17% is in line compared to the rest of the industry. HRB outperforms 48.00% of its industry peers.
- In the last couple of years the Gross Margin of HRB has grown nicely.
| 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HRB is creating value.
- The number of shares outstanding for HRB has been reduced compared to 1 year ago.
- Compared to 5 years ago, HRB has less shares outstanding
- The debt/assets ratio for HRB has been reduced compared to a year ago.
2.2 Solvency
- HRB has an Altman-Z score of 2.49. This is not the best score and indicates that HRB is in the grey zone with still only limited risk for bankruptcy at the moment.
- HRB's Altman-Z score of 2.49 is fine compared to the rest of the industry. HRB outperforms 66.67% of its industry peers.
- HRB has a debt to FCF ratio of 4.65. This is a neutral value as HRB would need 4.65 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.65, HRB is in the better half of the industry, outperforming 74.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.65 | ||
| Altman-Z | 2.49 |
ROIC/WACC3.74
WACC7.76%
2.3 Liquidity
- HRB has a Current 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.
- With a Current ratio value of 1.29, HRB perfoms like the industry average, outperforming 56.00% 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.
- With a Quick ratio value of 1.29, HRB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.30% over the past year.
- The Earnings Per Share has been growing by 43.89% on average over the past years. This is a very strong growth
- HRB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.70%.
- HRB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.34% yearly.
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
- HRB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.96% yearly.
- HRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y5.89%
EPS Next 2Y8.37%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue Next Year4.25%
Revenue Next 2Y3.69%
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. Valuation
4.1 Price/Earnings Ratio
- HRB is valuated cheaply with a Price/Earnings ratio of 6.47.
- 92.00% of the companies in the same industry are more expensive than HRB, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of HRB to the average of the S&P500 Index (28.18), we can say HRB is valued rather cheaply.
- With a Price/Forward Earnings ratio of 5.35, the valuation of HRB can be described as very cheap.
- 98.67% of the companies in the same industry are more expensive than HRB, based on the Price/Forward Earnings ratio.
- HRB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 5.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HRB is valued cheaply inside the industry as 81.33% of the companies are valued more expensively.
- 96.00% of the companies in the same industry are more expensive than HRB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 6.1 |
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.
PEG (NY)1.1
PEG (5Y)0.15
EPS Next 2Y8.37%
EPS Next 3Y11.96%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.15%, HRB is a good candidate for dividend investing.
- In the last 3 months the price of HRB has falen by -32.62%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- HRB's Dividend Yield is rather good when compared to the industry average which is at 0.39. HRB pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, HRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
- On average, the dividend of HRB grows each year by 6.79%, which is quite nice.
- HRB has been paying a dividend for at least 10 years, so it has a reliable track record.
- HRB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.79%
Div Incr Years9
Div Non Decr Years27
5.3 Sustainability
- 33.68% of the earnings are spent on dividend by HRB. This is a low number and sustainable payout ratio.
- HRB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.68%
EPS Next 2Y8.37%
EPS Next 3Y11.96%
29.83
-2.8 (-8.58%)
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 Owners97.19%
Inst Owner Change-0.89%
Ins Owners0.91%
Ins Owner Change4.09%
Market Cap3.78B
Revenue(TTM)3.79B
Net Income(TTM)608.44M
Analysts50.91
Price Target56.1 (88.07%)
Short Float %9.21%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.68%
Div Incr Years9
Div Non Decr Years27
Ex-DateN/A
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)0.81%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 5.35 | ||
| P/S | 1 | ||
| P/FCF | 7.22 | ||
| P/OCF | 6.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.1 |
EPS(TTM)4.61
EY15.45%
EPS(NY)5.58
Fwd EY18.7%
FCF(TTM)4.13
FCFY13.86%
OCF(TTM)4.78
OCFY16.02%
SpS29.9
BVpS-6.49
TBVpS-15.07
PEG (NY)1.1
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 | 2.49 |
F-Score5
WACC7.76%
ROIC/WACC3.74
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 Y5.89%
EPS Next 2Y8.37%
EPS Next 3Y11.96%
EPS Next 5YN/A
Revenue 1Y (TTM)4.7%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%11.05%
Revenue Next Year4.25%
Revenue Next 2Y3.69%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y11.39%
EBIT growth 3Y3.59%
EBIT growth 5Y35.23%
EBIT Next Year14.81%
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 8 / 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 5.89% in the next year.