DB:HRB

Stock Analysis Report

Executive Summary

H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation, do-it-yourself (DIY) tax, and virtual tax preparation services and products to the general public primarily in the United States, Canada, and Australia.

Snowflake

Fundamentals

6 star dividend payer and fair value.


Similar Companies

Share Price & News

How has H&R Block's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

HRB

0.5%

DE Consumer Services

3.9%

DE Market


1 Year Return

-7.5%

HRB

-0.9%

DE Consumer Services

3.4%

DE Market

Return vs Industry: HRB underperformed the German Consumer Services industry which returned -0.9% over the past year.

Return vs Market: HRB underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

HRBIndustryMarket
7 Day-0.9%0.5%3.9%
30 Day-2.4%-1.4%2.1%
90 Day-14.8%-1.3%3.7%
1 Year-3.8%-7.5%-0.5%-0.9%6.7%3.4%
3 Year11.8%-0.2%-8.4%-11.7%18.9%8.6%
5 Year6.1%-10.5%-22.5%-38.7%41.8%22.5%

Price Volatility Vs. Market

How volatile is H&R Block's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is H&R Block undervalued compared to its fair value and its price relative to the market?

39.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HRB (€21.2) is trading below our estimate of fair value (€34.84)

Significantly Undervalued: HRB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HRB is good value based on its PE Ratio (10.8x) compared to the Consumer Services industry average (15.2x).

PE vs Market: HRB is good value based on its PE Ratio (10.8x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: HRB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HRB is overvalued based on its PB Ratio (16.4x) compared to the XE Consumer Services industry average (2.3x).


Next Steps

Future Growth

How is H&R Block forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRB's earnings are forecast to decline over the next 3 years (-3.2% per year).

Earnings vs Market: HRB's earnings are forecast to decline over the next 3 years (-3.2% per year).

High Growth Earnings: HRB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HRB's revenue (0.7% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: HRB's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HRB's Return on Equity is forecast to be very high in 3 years time (63.5%).


Next Steps

Past Performance

How has H&R Block performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HRB's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: HRB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HRB had negative earnings growth (-26%) over the past year, making it difficult to compare to the Consumer Services industry average (34.2%).


Return on Equity

High ROE: Whilst HRB's Return on Equity (154.17%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: HRB has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: HRB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is H&R Block's financial position?


Financial Position Analysis

Short Term Liabilities: HRB's short term assets ($946.7M) exceeds its short term liabilities ($733.0M)

Long Term Liabilities: HRB's short term assets (946.7M) do not cover its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: HRB's debt to equity ratio (513.5%) is considered high

Reducing Debt: HRB's debt to equity ratio has increased from 50.3% to 513.5% over the past 5 years.

Debt Coverage: HRB's debt is well covered by operating cash flow (33.4%).

Interest Coverage: HRB's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet

Inventory Level: HRB has a high level of physical assets or inventory.

Debt Coverage by Assets: HRB's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is H&R Block's current dividend yield, its reliability and sustainability?

4.38%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HRB's dividend (4.38%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: HRB's dividend (4.38%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: HRB's dividends per share have been stable in the past 10 years.

Growing Dividend: HRB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.1%), HRB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HRB's dividends in 3 years are forecast to be covered by earnings (51.7% payout ratio).


Next Steps

Management

What is the CEO of H&R Block's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Jeff Jones (51yo)

2yrs

Tenure

US$8,504,020

Compensation

Mr. Jeffrey J. Jones, II, also known as Jeff, has been the Chief Executive Officer and President at H&R Block, Inc. since October 9, 2017 and has been its Director since 2017. Mr. Jones is Director of Adva ...


CEO Compensation Analysis

Compensation vs. Market: Jeff has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.4yrs

Average Tenure

49yo

Average Age

Experienced Management: HRB's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

61yo

Average Age

Experienced Board: HRB's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$76,15403 Jul 19
Kellie Logerwell
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & VP
Shares3,000
Max PriceUS$25.38

Ownership Breakdown


Management Team

  • Henry Bloch (97yo)

    Co-Founder & Honorary Chairman

    • Tenure: 0yrs
  • Tom Gerke (63yo)

    Chief Administrative Officer & General Counsel

    • Tenure: 3.4yrs
    • Compensation: US$2.22m
  • Jeff Jones (51yo)

    CEO, President & Director

    • Tenure: 2yrs
    • Compensation: US$8.50m
  • Colby Brown (45yo)

    Vice President and Corporate Controller

    • Tenure: 9.1yrs
  • Vinoo Vijay

    Chief Marketing Officer

    • Tenure: 1.5yrs
  • Kip Knight (62yo)

    Senior Vice President of U.S. Franchise & International

    • Tenure: 7.5yrs
    • Compensation: US$1.66m
  • Tiffany Monroe (46yo)

    Chief People Officer

    • Tenure: 1.6yrs
  • Kellie Logerwell (49yo)

    Chief Accounting Officer & VP

    • Tenure: 3.3yrs
    • Compensation: US$643.99k
  • Tony Bowen (44yo)

    Chief Financial Officer

    • Tenure: 3.4yrs
    • Compensation: US$2.02m
  • Karen Orosco (48yo)

    Senior Vice President of U.S. Retail Sales & Service

    • Tenure: 3.4yrs
    • Compensation: US$1.78m

Board Members

  • Bruce Rohde (70yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$271.37k
  • David Lewis (68yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$256.37k
  • Victoria Reich (61yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$271.37k
  • Henry Bloch (97yo)

    Co-Founder & Honorary Chairman

    • Tenure: 0yrs
  • Jeff Jones (51yo)

    CEO, President & Director

    • Tenure: 2yrs
    • Compensation: US$8.50m
  • Paul Brown (52yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$267.37k
  • Christy Wood (59yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$254.87k
  • Bob Gerard (74yo)

    Independent Chairman of the Board

    • Tenure: 8.5yrs
    • Compensation: US$440.84k
  • Dick Johnson (61yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$257.37k
  • Angela Archon (59yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$251.37k

Company Information

H&R Block, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H&R Block, Inc.
  • Ticker: HRB
  • Exchange: DB
  • Founded: 1955
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$4.737b
  • Listing Market Cap: US$4.259b
  • Shares outstanding: 200.72m
  • Website: https://www.hrblock.com

Number of Employees


Location

  • H&R Block, Inc.
  • One H&R Block Way
  • Kansas City
  • Missouri
  • 64105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
HRBDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0HOBLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969

Biography

H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation, do-it-yourself (DIY) tax, and virtual tax preparation services and products to the general public primarily in th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 21:26
End of Day Share Price2019/10/17 00:00
Earnings2019/07/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.