NYSE:HRB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Established dividend payer and good 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

Stable Share Price: HRB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HRB's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.4%

HRB

10.1%

US Consumer Services

1.4%

US Market


1 Year Return

-31.6%

HRB

34.3%

US Consumer Services

22.6%

US Market

Return vs Industry: HRB underperformed the US Consumer Services industry which returned 23.7% over the past year.

Return vs Market: HRB underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

HRBIndustryMarket
7 Day3.4%10.1%1.4%
30 Day10.0%10.8%4.9%
90 Day-9.4%10.3%14.6%
1 Year-27.0%-31.6%34.7%34.3%25.4%22.6%
3 Year-28.3%-37.8%63.5%57.7%46.8%37.0%
5 Year-37.3%-49.5%298.4%268.3%132.0%106.1%

Long-Term 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

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 ($16.67) is trading below our estimate of fair value ($41.64)

Significantly Below Fair Value: HRB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HRB is good value based on its PE Ratio (15.6x) compared to the US Consumer Services industry average (26.4x).

PE vs Market: HRB is good value based on its PE Ratio (15.6x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

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 has negative assets, so we can't compare its PB Ratio to the US Consumer Services industry average.


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?

-5.3%

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 (-5.3% per year).

Earnings vs Market: HRB's earnings are forecast to decline over the next 3 years (-5.3% per year).

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

Revenue vs Market: HRB's revenue is expected to decline over the next 3 years (-4.4% per year).

High Growth Revenue: HRB's revenue is forecast to decline over the next 3 years (-4.4% 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 (146%).


Next Steps

Past Performance

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

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRB has a large one-off loss of $106.0M impacting its October 31 2020 financial results.

Growing Profit Margin: HRB's current net profit margins (6.6%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: HRB's earnings have declined by 5.3% 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 (-52.6%) over the past year, making it difficult to compare to the Consumer Services industry average (9.9%).


Return on Equity

High ROE: HRB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is H&R Block's financial position?


Financial Position Analysis

Short Term Liabilities: HRB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HRB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HRB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HRB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: HRB's debt is well covered by operating cash flow (34.6%).

Interest Coverage: HRB's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Next Steps

Dividend

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

6.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HRB's dividend (6.24%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: HRB's dividend (6.24%) is in the top 25% of dividend payers in the US market (3.86%)


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 (97.1%), 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 (43.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Jeff Jones (52 yo)

3.25yrs

Tenure

US$6,921,199

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 ($USD6.92M) is above average for companies of similar size in the US market ($USD5.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Jones
President3.25yrsUS$6.92m0.19%
$ 5.8m
Tony Bowen
Chief Financial Officer4.67yrsUS$2.09m0.042%
$ 1.3m
Kellie Logerwell
VP & Chief Accounting Officer4.5yrsUS$568.00k0.0067%
$ 207.7k
Thomas Gerke
Chief Administrative Officer & General Counsel4.67yrsUS$1.88m0.053%
$ 1.6m
Karen Orosco
Senior Vice President of U.S. Retail Sales & Service2.67yrsUS$1.82m0.040%
$ 1.2m
Alan Lowden
Senior VP & Chief Information Officerno datano datano data
Tiffany Monroe
Chief People Officer2.83yrsno datano data
Colby Brown
Vice President and Corporate Controller10.33yrsno datano data
Jamil Khan
Chief Strategy & Development Officer1.25yrsno datano data
Julius Lai
Chief Product & Experience Officer0.42yrno datano data
Les Whiting
Chief Financial Services Officer0.42yrno datano data
Heather Watts
Senior VP & GM of DIY Taxno datano datano data

3.0yrs

Average Tenure

49yo

Average Age

Experienced Management: HRB's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Jones
President3.25yrsUS$6.92m0.19%
$ 5.8m
Bruce Rohde
Independent Director10.5yrsUS$274.60k0.0054%
$ 168.7k
David Lewis
Independent Director16.25yrsUS$263.35k0.0022%
$ 67.5k
Victoria Reich
Independent Director9.33yrsUS$277.35k0.0023%
$ 71.8k
Paul Brown
Independent Director9.33yrsUS$260.85k0.0031%
$ 96.3k
Christianna Wood
Independent Director12.5yrsUS$257.35k0.0069%
$ 212.4k
Matthew Winter
Independent Director3.17yrsUS$268.60k0%
$ 0
Robert Gerard
Independent Chairman9.75yrsUS$454.28k0.014%
$ 439.0k
Richard Johnson
Independent Director5.33yrsUS$264.85k0%
$ 0
Anuradha Gupta
Independent Director1.17yrsUS$183.39k0%
$ 0
Yolande Piazza
Independent Director0.33yrno datano data

9.3yrs

Average Tenure

62yo

Average Age

Experienced Board: HRB's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HRB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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$3.096b
  • Shares outstanding: 183.42m
  • 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
H1RB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 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 th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 23:04
End of Day Share Price2021/01/21 00:00
Earnings2020/10/31
Annual Earnings2020/04/30


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.