H&R Block
Market Cap
US$4.0b
Last Updated
2021/04/19 22:54 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. More Details
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Established dividend payer and slightly overvalued.
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 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.
Market Performance
7 Day Return
-3.6%
HRB
1.0%
US Consumer Services
1.3%
US Market
1 Year Return
59.3%
HRB
48.3%
US Consumer Services
53.8%
US Market
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.
Shareholder returns
| HRB | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.6% | 1.0% | 1.3% |
| 30 Day | 2.2% | -7.6% | 5.1% |
| 90 Day | 33.2% | -7.9% | 8.9% |
| 1 Year | 69.4%59.3% | 48.5%48.3% | 56.6%53.8% |
| 3 Year | -6.7%-19.4% | 41.6%8.3% | 64.4%53.6% |
| 5 Year | 13.4%-9.1% | 130.9%67.3% | 120.4%95.7% |
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 St
H&R Block, Inc.'s (NYSE:HRB) Intrinsic Value Is Potentially 84% Above Its Share Price3 weeks ago | Simply Wall St
Who Has Been Buying H&R Block, Inc. (NYSE:HRB) Shares?1 month ago | Simply Wall St
Do These 3 Checks Before Buying H&R Block, Inc. (NYSE:HRB) For Its Upcoming DividendValuation
Is H&R Block undervalued compared to its fair value and its price relative to the market?
41.2%
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.
Future Growth
How is H&R Block forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
4.3%
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%).
Past Performance
How has H&R Block performed over the past 5 years?
-8.7%
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.
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 (28.2%).
Interest Coverage: HRB's interest payments on its debt are well covered by EBIT (4.2x coverage).
Balance Sheet
Dividend
What is H&R Block current dividend yield, its reliability and sustainability?
4.76%
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).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Jeff Jones (52 yo)
3.5yrs
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 ($USD5.16M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HRB's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: HRB's board of directors are considered experienced (7.6 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.
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$4.008b
- Shares outstanding: 181.43m
- 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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 22:54 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2021/01/31 |
| 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.