H&R Block
Market Cap
US$2.7b
Last Updated
2020/07/01 23:52 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Established dividend payer with reasonable growth potential.
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
Stable Share Price: HRB's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.8%
HRB
1.9%
US Consumer Services
1.9%
US Market
1 Year Return
-51.9%
HRB
22.7%
US Consumer Services
4.3%
US Market
Return vs Industry: HRB underperformed the US Consumer Services industry which returned 22.7% over the past year.
Return vs Market: HRB underperformed the US Market which returned 4.3% over the past year.
Shareholder returns
| HRB | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.8% | 1.9% | 1.9% |
| 30 Day | -19.4% | 12.0% | 2.7% |
| 90 Day | 11.5% | 32.3% | 26.4% |
| 1 Year | -49.2%-51.9% | 23.0%22.7% | 6.5%4.3% |
| 3 Year | -48.6%-54.9% | 82.2%75.0% | 35.1%26.2% |
| 5 Year | -43.4%-53.5% | 207.1%184.2% | 67.0%48.4% |
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
1 week ago | Simply Wall St
Should You Buy H&R Block, Inc. (NYSE:HRB) For Its Dividend?3 weeks ago | Simply Wall St
Need To Know: H&R Block, Inc. (NYSE:HRB) Insiders Have Been Selling Shares1 month ago | Simply Wall St
Is Now An Opportune Moment To Examine H&R Block, Inc. (NYSE:HRB)?Valuation
Is H&R Block undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HRB ($14) is trading below our estimate of fair value ($36.26)
Significantly Below Fair Value: HRB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HRB is poor value based on its PE Ratio (499.2x) compared to the Consumer Services industry average (28.7x).
PE vs Market: HRB is poor value based on its PE Ratio (499.2x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: HRB is poor value based on its PEG Ratio (9.8x)
Price to Book Ratio
PB vs Industry: HRB is overvalued based on its PB Ratio (37.9x) compared to the US Consumer Services industry average (2.2x).
Next Steps
Future Growth
How is H&R Block forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
50.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HRB's forecast earnings growth (50.9% per year) is above the savings rate (2.2%).
Earnings vs Market: HRB's earnings (50.9% per year) are forecast to grow faster than the US market (22.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HRB's revenue (4.6% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: HRB's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HRB's Return on Equity is forecast to be very high in 3 years time (135.7%).
Next Steps
Past Performance
How has H&R Block performed over the past 5 years?
-1.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HRB has a large one-off loss of $106.0M impacting its April 30 2005 financial results.
Growing Profit Margin: HRB's current net profit margins (0.2%) are lower than last year (14.4%).
Past Earnings Growth Analysis
Earnings Trend: HRB's earnings have declined by -1.8% 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 (-98.8%) over the past year, making it difficult to compare to the Consumer Services industry average (18.3%).
Return on Equity
High ROE: HRB's Return on Equity (8.7%) is considered low.
Next Steps
Financial Health
How is H&R Block's financial position?
Financial Position Analysis
Short Term Liabilities: HRB's short term assets ($3.1B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: HRB's short term assets ($3.1B) do not cover its long term liabilities ($3.5B).
Debt to Equity History and Analysis
Debt Level: HRB's debt to equity ratio (4941.5%) is considered high.
Reducing Debt: HRB's debt to equity ratio has increased from 29.4% to 4941.5% over the past 5 years.
Debt Coverage: HRB's debt is not well covered by operating cash flow (3.1%).
Interest Coverage: HRB's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Next Steps
Dividend
What is H&R Block current dividend yield, its reliability and sustainability?
7.43%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HRB's dividend (7.43%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: HRB's dividend (7.43%) is in the top 25% of dividend payers in the US market (4.49%)
Stability and Growth of Payments
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 high payout ratio (3708.1%), HRB's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HRB's dividends in 3 years are forecast to be well covered by earnings (45% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Jeff Jones (52yo)
2.75yrs
Tenure
US$8,504,020
Compensation
Mr. Jeffrey J. Jones, II, also known as Jeff, has been the Chief Executive Officer and President at H&R Block, Inc. since October 9, 2017 and has been its Director since 2017. Mr. Jones is Director of Adva ...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD8.50M) is above average for companies of similar size in the US market ($USD5.86M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.75yrs | US$8.50m | 0.058% $1.6m | |
| Chief Financial Officer | 4.17yrs | US$2.02m | 0.022% $590.7k | |
| Chief Accounting Officer | 4yrs | US$643.99k | 0.0025% $66.8k | |
| Chief Administrative Officer & General Counsel | 4.17yrs | US$2.22m | 0.041% $1.1m | |
| Senior Vice President of U.S. Retail Sales & Service | 4.17yrs | US$1.78m | 0.022% $603.6k | |
| Chief Marketing Officer | 2.25yrs | no data | no data | |
| Chief People Officer | 2.33yrs | no data | no data | |
| Vice President and Corporate Controller | 9.83yrs | no data | no data | |
| Senior Vice President of U.S. Franchise & International | 8.25yrs | US$1.66m | no data | |
| Chief Strategy & Development Officer | 0.75yr | no data | no data |
4.1yrs
Average Tenure
49.5yo
Average Age
Experienced Management: HRB's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.75yrs | US$8.50m | 0.058% $1.6m | |
| Independent Director | 10yrs | US$271.37k | 0.0052% $140.1k | |
| Independent Director | 15.75yrs | US$256.37k | 0.0021% $56.0k | |
| Independent Director | 8.83yrs | US$271.37k | 0.0018% $49.0k | |
| Independent Director | 8.83yrs | US$267.37k | 0.0030% $79.8k | |
| Independent Director | 12yrs | US$254.87k | 0.0065% $176.2k | |
| Independent Director | 2.67yrs | US$257.71k | no data | |
| Independent Chairman of the Board | 9.25yrs | US$440.84k | 0.0073% $195.9k | |
| Independent Director | 4.83yrs | US$257.37k | no data | |
| Independent Director | 4.33yrs | US$251.37k | no data |
8.8yrs
Average Tenure
62yo
Average Age
Experienced Board: HRB's board of directors are considered experienced (8.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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: NYSE
- Founded: 1955
- Industry: Specialized Consumer Services
- Sector: Consumer Services
- Market Cap: US$2.695b
- Shares outstanding: 192.48m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HRB | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| HRB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
| 0HOB | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1969 |
| H1RB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
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 the United States, Canada, and Australia. The company offers assisted income tax return preparation and related services through a system of retail offices operated directly by the company or by franchisees. It also develops and markets DIY income tax preparation software online, as well as through third-party retail stores and direct mail; and provides DIY tax services, including federal and state income tax returns, access to tax tips, advice and tax-related news, use of calculators for tax planning, and error checking and electronic filing. In addition, the company offers Refund Transfers and H&R Block Emerald Prepaid Mastercard, which enables clients to receive their tax refunds; Peace of Mind extended service plans; H&R Block Emerald Advance lines of credit; Tax Identity Shield that provides clients assistance in helping protect their tax identity and access to services to help restore their tax identity; refund advance loans; H&R Block Instant Refund; and H&R Block Pay With Refund services. Further, it provides small business financial solutions through its company-owned or franchise offices, and online. H&R Block, Inc. was founded in 1955 and is headquartered in Kansas City, Missouri.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/01 23:52 |
| End of Day Share Price | 2020/07/01 00:00 |
| Earnings | 2020/04/30 |
| Annual Earnings | 2020/04/30 |
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.