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HRB

H&R BlockNYSE:HRB Stock Report

Market Cap

US$4.5b

7D

2.0%

1Y

67.0%

Updated

26 Sep, 2021

Data

Company Financials +
HRB fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends5/6

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.

H&R Block Competitors

Price History & Performance

Summary of all time highs, changes and price drops for H&R Block
Historical stock prices
Current Share PriceUS$25.54
52 Week HighUS$14.91
52 Week LowUS$26.51
Beta0.86
1 Month Change-1.08%
3 Month Change10.09%
1 Year Change67.04%
3 Year Change-0.82%
5 Year Change10.32%
Change since IPO454.09%

Recent News & Updates

Sep 03
Shareholders May Not Be So Generous With H&R Block, Inc.'s (NYSE:HRB) CEO Compensation And Here's Why

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...

Aug 28
When Should You Buy H&R Block, Inc. (NYSE:HRB)?

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...

Aug 19

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

HRBUS Consumer ServicesUS Market
7D2.0%-2.0%0.1%
1Y67.0%-53.5%35.3%

Return vs Industry: HRB exceeded the US Consumer Services industry which returned -53.5% over the past year.

Return vs Market: HRB exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is HRB's price volatile compared to industry and market?
HRB volatility
HRB Beta0.86
Industry Beta0.90
Market Beta1

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

FoundedEmployeesCEOWebsite
19553,600Jeff Joneshttps://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.

H&R Block Fundamentals Summary

How do H&R Block's earnings and revenue compare to its market cap?
HRB fundamental statistics
Market CapUS$4.55b
Earnings (TTM)US$544.30m
Revenue (TTM)US$2.80b

8.4x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HRB income statement (TTM)
RevenueUS$2.80b
Cost of RevenueUS$1.40b
Gross ProfitUS$1.40b
ExpensesUS$855.76m
EarningsUS$544.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.06
Gross Margin50.06%
Net Profit Margin19.46%
Debt/Equity Ratio511.2%

How did HRB perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

262%

Payout Ratio

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 ($25.54) is trading below our estimate of fair value ($99.89)

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 (8.4x) compared to the US Consumer Services industry average (14.6x).

PE vs Market: HRB is good value based on its PE Ratio (8.4x) compared to the US market (17.9x).


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 (11.7x) 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?

-1.1%

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 (-1.1% per year).

Earnings vs Market: HRB's earnings are forecast to decline over the next 3 years (-1.1% 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?

4.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HRB's dividend (4.23%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: HRB's dividend (4.23%) 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 ($USD8.91M) is above average for companies of similar size in the US market ($USD5.28M).

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$4.548b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:11
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.