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
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Established dividend payer and slightly overvalued.
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 not significantly more volatile than the rest 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.
7 Day Return
US Consumer Services
1 Year Return
US Consumer Services
Return vs Industry: HRB exceeded the US Consumer Services industry which returned 48.3% over the past year.
Return vs Market: HRB matched the US Market which returned 53.9% over the past year.
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
6 days ago | Simply Wall StH&R Block, Inc.'s (NYSE:HRB) Intrinsic Value Is Potentially 84% Above Its Share Price
3 weeks ago | Simply Wall StWho Has Been Buying H&R Block, Inc. (NYSE:HRB) Shares?
1 month ago | Simply Wall StDo These 3 Checks Before Buying H&R Block, Inc. (NYSE:HRB) For Its Upcoming Dividend
Is H&R Block undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HRB ($22.09) is trading below our estimate of fair value ($36.92)
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 (41.1x) compared to the US Consumer Services industry average (25.5x).
PE vs Market: HRB is poor value based on its PE Ratio (41.1x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: HRB is poor value based on its PEG Ratio (9.5x)
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.
How is H&R Block forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HRB's forecast earnings growth (4.3% per year) is above the savings rate (2%).
Earnings vs Market: HRB's earnings (4.3% per year) are forecast to grow slower than the US market (18% per year).
High Growth Earnings: HRB's earnings are forecast to grow, but not significantly.
Revenue vs Market: HRB's revenue is expected to decline over the next 3 years (-2.1% per year).
High Growth Revenue: HRB's revenue is forecast to decline over the next 3 years (-2.1% 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 (137.8%).
How has H&R Block performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HRB has a large one-off loss of $106.0M impacting its January 31 2021 financial results.
Growing Profit Margin: HRB's current net profit margins (3.5%) are lower than last year (13.4%).
Past Earnings Growth Analysis
Earnings Trend: HRB's earnings have declined by 8.7% 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 (-75.8%) over the past year, making it difficult to compare to the Consumer Services industry average (-0.4%).
Return on Equity
High ROE: HRB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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 (28.2%).
Interest Coverage: HRB's interest payments on its debt are well covered by EBIT (4.2x coverage).
What is H&R Block current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HRB's dividend (4.71%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: HRB's dividend (4.71%) is in the top 25% of dividend payers in the US market (3.46%)
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 (193.4%), 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 (40.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jeff Jones (52 yo)
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 ($USD5.16M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Experienced Management: HRB's management team is considered experienced (3.3 years average tenure).
Experienced Board: HRB's board of directors are considered experienced (7.6 years average tenure).
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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
H&R Block, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: H&R Block, Inc.
- Ticker: HRB
- Exchange: NYSE
- Founded: 1955
- Industry: Specialized Consumer Services
- Sector: Consumer Services
- Market Cap: US$4.008b
- Shares outstanding: 181.43m
- Website: https://www.hrblock.com
Number of Employees
- H&R Block, Inc.
- One H&R Block Way
- Kansas City
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/19 22:54|
|End of Day Share Price||2021/04/19 00:00|
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.