H&R BLOCK INC (HRB) Stock Fundamental Analysis
USA - NYSE:HRB - US0936711052 - Common Stock
44.27 USD
-0.58 (-1.29%)
44.27 USD
0 (0%)
HRB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 78 industry peers in the Diversified Consumer Services industry. While HRB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on HRB. HRB also has an excellent dividend rating. These ratings could make HRB a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year HRB was profitable.
HRB had a positive operating cash flow in the past year.
Each year in the past 5 years HRB has been profitable.
Each year in the past 5 years HRB had a positive operating cash flow.
1.2 Ratios
HRB has a Return On Assets of 23.16%. This is amongst the best in the industry. HRB outperforms 97.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 35.30%, HRB belongs to the top of the industry, outperforming 100.00% 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 9.31%.
The 3 year average ROIC (29.50%) for HRB is below the current ROIC(35.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | N/A | ||
| ROIC | 35.3% |
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 16.10%. This is amongst the best in the industry. HRB outperforms 85.90% of its industry peers.
In the last couple of years the Profit Margin of HRB has remained more or less at the same level.
HRB has a Operating Margin of 22.52%. This is amongst the best in the industry. HRB outperforms 88.46% of its industry peers.
HRB's Operating Margin has improved in the last couple of years.
HRB has a Gross Margin (44.56%) which is in line with its industry peers.
In the last couple of years the Gross Margin of HRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.52% | ||
| PM (TTM) | 16.1% | ||
| GM | 44.56% |
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
HRB has a better debt/assets ratio than last year.
2.2 Solvency
HRB has an Altman-Z score of 3.19. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, HRB is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
HRB has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as HRB would need 3.01 years to pay back of all of its debts.
HRB has a Debt to FCF ratio of 3.01. This is in the better half of the industry: HRB outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 3.19 |
ROIC/WACC4.54
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.76 indicates that HRB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, HRB is doing worse than 67.95% of the companies in the same industry.
HRB has a Quick Ratio of 0.76. This is a bad value and indicates that HRB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HRB (0.76) is worse than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
HRB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.52%.
Measured over the past years, HRB shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.89% on average per year.
The Revenue has decreased by -0.88% in the past year.
The Revenue has been growing slightly by 7.34% on average over the past years.
EPS 1Y (TTM)7.52%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-2.56%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%5.03%
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 12.47% 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 Y5.25%
EPS Next 2Y7.99%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue Next Year4.28%
Revenue Next 2Y3.76%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.38, which indicates a very decent valuation of HRB.
88.46% of the companies in the same industry are more expensive than HRB, based on the Price/Earnings ratio.
HRB is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.99 indicates a rather cheap valuation of HRB.
Based on the Price/Forward Earnings ratio, HRB is valued cheaply inside the industry as 93.59% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. HRB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
HRB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HRB is cheaper than 79.49% of the companies in the same industry.
85.90% 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 | 9.83 | ||
| EV/EBITDA | 7.34 |
4.3 Compensation for Growth
HRB's 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.
A more expensive valuation may be justified as HRB's earnings are expected to grow with 12.47% in the coming years.
PEG (NY)1.79
PEG (5Y)0.21
EPS Next 2Y7.99%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
HRB has a Yearly Dividend Yield of 3.75%.
Compared to an average industry Dividend Yield of 2.08, HRB pays a better dividend. On top of this HRB pays more dividend than 98.72% of the companies listed in the same industry.
HRB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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
33.41% of the earnings are spent on dividend by HRB. This is a low number and sustainable payout ratio.
The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.41%
EPS Next 2Y7.99%
EPS Next 3Y12.47%
44.27
-0.58 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change-3.13%
Ins Owners0.95%
Ins Owner Change5.37%
Market Cap5.66B
Revenue(TTM)3.77B
Net Income(TTM)607.22M
Analysts50.91
Price Target56.1 (26.72%)
Short Float %9.58%
Short Ratio8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend1.44
Dividend Growth(5Y)6.79%
DP33.41%
Div Incr Years9
Div Non Decr Years27
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.25%
Min EPS beat(2)-20.65%
Max EPS beat(2)12.15%
EPS beat(4)2
Avg EPS beat(4)-3.26%
Min EPS beat(4)-20.65%
Max EPS beat(4)12.15%
EPS beat(8)6
Avg EPS beat(8)2.71%
EPS beat(12)9
Avg EPS beat(12)3.23%
EPS beat(16)13
Avg EPS beat(16)5.57%
Revenue beat(2)2
Avg Revenue beat(2)1.5%
Min Revenue beat(2)0.7%
Max Revenue beat(2)2.3%
Revenue beat(4)3
Avg Revenue beat(4)0%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)2.3%
Revenue beat(8)7
Avg Revenue beat(8)1.26%
Revenue beat(12)9
Avg Revenue beat(12)1.7%
Revenue beat(16)12
Avg Revenue beat(16)1.92%
PT rev (1m)0%
PT rev (3m)-14.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 7.99 | ||
| P/S | 1.5 | ||
| P/FCF | 9.83 | ||
| P/OCF | 8.67 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.34 |
EPS(TTM)4.72
EY10.66%
EPS(NY)5.54
Fwd EY12.51%
FCF(TTM)4.51
FCFY10.18%
OCF(TTM)5.1
OCFY11.53%
SpS29.49
BVpS-4.31
TBVpS-12.53
PEG (NY)1.79
PEG (5Y)0.21
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.16% | ||
| ROE | N/A | ||
| ROCE | 45.13% | ||
| ROIC | 35.3% | ||
| ROICexc | 44.13% | ||
| ROICexgc | 146.48% | ||
| OM | 22.52% | ||
| PM (TTM) | 16.1% | ||
| GM | 44.56% | ||
| FCFM | 15.28% |
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-Score6
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.01 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 65.42% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 10.19 | ||
| Cash Conversion | 67.55% | ||
| Profit Quality | 94.88% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.19 |
F-Score6
WACC7.78%
ROIC/WACC4.54
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)7.52%
EPS 3Y8.29%
EPS 5Y43.89%
EPS Q2Q%-2.56%
EPS Next Y5.25%
EPS Next 2Y7.99%
EPS Next 3Y12.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y2.79%
Revenue growth 5Y7.34%
Sales Q2Q%5.03%
Revenue Next Year4.28%
Revenue Next 2Y3.76%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y47.2%
EBIT growth 3Y3.59%
EBIT growth 5Y35.23%
EBIT Next Year14.81%
EBIT Next 3Y8.21%
EBIT Next 5YN/A
FCF growth 1Y-22.36%
FCF growth 3Y-7.08%
FCF growth 5Y85.45%
OCF growth 1Y-19.28%
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 6 / 10 to HRB.
What is the valuation status of H&R BLOCK INC (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.
What is the expected EPS growth for H&R BLOCK INC (HRB) stock?
The Earnings per Share (EPS) of H&R BLOCK INC (HRB) is expected to grow by 5.25% in the next year.
Is the dividend of H&R BLOCK INC sustainable?
The dividend rating of H&R BLOCK INC (HRB) is 8 / 10 and the dividend payout ratio is 33.41%.