| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 5/6 |
HRB Overview
H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation and do-it-yourself (DIY) tax return preparation services and products to the general public primarily in the United States, Canada, and Australia.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 0.8% per year for the next 3 years
+ 1 more risk
H&R Block Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$25.05 |
| 52 Week High | US$13.51 |
| 52 Week Low | US$26.51 |
| Beta | 0.86 |
| 1 Month Change | -1.07% |
| 3 Month Change | 6.32% |
| 1 Year Change | 80.22% |
| 3 Year Change | -4.10% |
| 5 Year Change | 8.49% |
| Change since IPO | 443.46% |
Recent News & Updates
Shareholders May Not Be So Generous With H&R Block, Inc.'s (NYSE:HRB) CEO Compensation And Here's Why
Under the guidance of CEO Jeff Jones, H&R Block, Inc. ( NYSE:HRB ) has performed reasonably well recently. This is...
When Should You Buy H&R Block, Inc. (NYSE:HRB)?
H&R Block, Inc. ( NYSE:HRB ), might not be a large cap stock, but it saw a decent share price growth in the teens level...
H&R Block - Wave Is Off To A Slow Start
H&R Block had great intent with their purchase of Wave and the strategic shift made sense. Wave integration with Block Advisors in theory, could provide growth in H&R Block's small business segment. The purchase price paid immediately put the acquisition in a bad light. Management needs to be more transparent with Wave's progress and growth if they want to garner excitement for its future.
Shareholder Returns
| HRB | US Consumer Services | US Market | |
|---|---|---|---|
| 7D | 1.1% | 0.07% | -0.6% |
| 1Y | 80.2% | -53.8% | 33.8% |
Return vs Industry: HRB exceeded the US Consumer Services industry which returned -53.8% over the past year.
Return vs Market: HRB exceeded the US Market which returned 33.8% over the past year.
Price Volatility
| HRB volatility | |
|---|---|
| HRB Beta | 0.86 |
| Industry Beta | 0.90 |
| Market Beta | 1 |
Stable Share Price: HRB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: HRB's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1955 | 3,600 | Jeff Jones | https://www.hrblock.com |
H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation and do-it-yourself (DIY) tax return 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 its franchisees. It also provides DIY tax services and products, 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; and software online, as well as through third-party retail stores.
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 ($25.05) is trading below our estimate of fair value ($99.38)
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 (8.2x) compared to the US Consumer Services industry average (17x).
PE vs Market: HRB is good value based on its PE Ratio (8.2x) compared to the US market (17.8x).
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 is overvalued based on its PB Ratio (11.5x) compared to the US Consumer Services industry average (1.9x).
Future Growth
How is H&R Block forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-0.8%
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 (-0.8% per year).
Earnings vs Market: HRB's earnings are forecast to decline over the next 3 years (-0.8% per year).
High Growth Earnings: HRB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HRB's revenue (4.4% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: HRB's revenue (4.4% 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 (99.2%).
Past Performance
How has H&R Block performed over the past 5 years?
-3.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HRB has a high level of non-cash earnings.
Growing Profit Margin: HRB's current net profit margins (19.5%) are higher than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: HRB's earnings have declined by 3.7% per year over the past 5 years.
Accelerating Growth: HRB's earnings growth over the past year (231.8%) exceeds its 5-year average (-3.7% per year).
Earnings vs Industry: HRB earnings growth over the past year (231.8%) exceeded the Consumer Services industry 35.4%.
Return on Equity
High ROE: Whilst HRB's Return on Equity (140.88%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is H&R Block's financial position?
Financial Position Analysis
Short Term Liabilities: HRB's short term assets ($2.1B) exceed its short term liabilities ($982.5M).
Long Term Liabilities: HRB's short term assets ($2.1B) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: HRB's debt to equity ratio (511.2%) is considered high.
Reducing Debt: HRB had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: HRB's debt is not well covered by operating cash flow (10.5%).
Interest Coverage: HRB's interest payments on its debt are well covered by EBIT (9.6x coverage).
Balance Sheet
Dividend
What is H&R Block current dividend yield, its reliability and sustainability?
4.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HRB's dividend (4.31%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: HRB's dividend (4.31%) is in the top 25% of dividend payers in the US market (3.6%)
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 (262.1%), 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 (33.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Jeff Jones (53 yo)
3.92yrs
Tenure
US$8,908,536
Compensation
Mr. Jeffrey J. Jones, II, also known as Jeff, has been the Chief Executive Officer and President at H&R Block, Inc. since October 9, 2017 and has been its Director since 2017. Mr. Jones is Director of Adva...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD8.91M) is above average for companies of similar size in the US market ($USD5.27M).
Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: HRB's management team is considered experienced (3.5 years average tenure).
Board Members
Experienced Board: HRB's board of directors are considered experienced (4.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HRB insiders have only sold shares 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 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$4.460b
- Shares outstanding: 178.06m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:02 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.