Loading...

H&R Block

NYSE:HRB
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HRB
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation, digital do-it-yourself (DIY) tax solutions, and other services and products related to income tax return preparation to the general public primarily in the United States, Canada, and Australia. The last earnings update was 2 days ago. More info.


Add to Portfolio Compare Print
HRB Share Price and Events
7 Day Returns
5.4%
NYSE:HRB
1.1%
US Consumer Services
0.5%
US Market
1 Year Returns
21.3%
NYSE:HRB
-1.3%
US Consumer Services
0.8%
US Market
HRB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
H&R Block (HRB) 5.4% 6.2% 18% 21.3% 23.6% -13.5%
US Consumer Services 1.1% 3.6% 8.4% -1.3% 106.6% 105.6%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • HRB outperformed the Consumer Services industry which returned -1.3% over the past year.
  • HRB outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
HRB
Industry
5yr Volatility vs Market
Related Companies

Value

 Is H&R Block undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of H&R Block to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for H&R Block.

NYSE:HRB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HRB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.757 (1 + (1- 21%) (26.12%))
0.942
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.942 * 5.96%)
8.34%

Discounted Cash Flow Calculation for NYSE:HRB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for H&R Block is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HRB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.34%)
2019 442.80 Analyst x1 408.70
2020 535.80 Analyst x2 456.45
2021 547.10 Analyst x2 430.19
2022 512.73 Est @ -6.28% 372.11
2023 494.39 Est @ -3.58% 331.17
2024 486.05 Est @ -1.69% 300.51
2025 484.30 Est @ -0.36% 276.37
2026 487.04 Est @ 0.57% 256.53
2027 492.96 Est @ 1.22% 239.65
2028 501.19 Est @ 1.67% 224.89
Present value of next 10 years cash flows $3,296.56
NYSE:HRB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $501.19 × (1 + 2.73%) ÷ (8.34% – 2.73%)
$9,171.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,171.70 ÷ (1 + 8.34%)10
$4,115.41
NYSE:HRB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,296.56 + $4,115.41
$7,411.97
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,411.97 / 201.96
$36.7
NYSE:HRB Discount to Share Price
Calculation Result
Value per share (USD) From above. $36.70
Current discount Discount to share price of $28.69
= -1 x ($28.69 - $36.70) / $36.70
21.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price H&R Block is available for.
Intrinsic value
22%
Share price is $28.69 vs Future cash flow value of $36.7
Current Discount Checks
For H&R Block to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • H&R Block's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • H&R Block's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for H&R Block's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are H&R Block's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HRB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $2.16
NYSE:HRB Share Price ** NYSE (2019-06-14) in USD $28.69
United States of America Consumer Services Industry PE Ratio Median Figure of 25 Publicly-Listed Consumer Services Companies 25.73x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of H&R Block.

NYSE:HRB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HRB Share Price ÷ EPS (both in USD)

= 28.69 ÷ 2.16

13.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • H&R Block is good value based on earnings compared to the US Consumer Services industry average.
  • H&R Block is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does H&R Block's expected growth come at a high price?
Raw Data
NYSE:HRB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-4.4%per year
United States of America Consumer Services Industry PEG Ratio Median Figure of 16 Publicly-Listed Consumer Services Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:HRB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.26x ÷ -4.4%

-2.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • H&R Block earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on H&R Block's assets?
Raw Data
NYSE:HRB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $2.68
NYSE:HRB Share Price * NYSE (2019-06-14) in USD $28.69
United States of America Consumer Services Industry PB Ratio Median Figure of 51 Publicly-Listed Consumer Services Companies 2.03x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:HRB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HRB Share Price ÷ Book Value per Share (both in USD)

= 28.69 ÷ 2.68

10.7x

* Primary Listing of H&R Block.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • H&R Block is overvalued based on assets compared to the US Consumer Services industry average.
X
Value checks
We assess H&R Block's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. H&R Block has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is H&R Block expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is H&R Block expected to grow at an attractive rate?
  • H&R Block's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • H&R Block's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • H&R Block's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HRB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HRB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -4.4%
NYSE:HRB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 1.7%
United States of America Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 29.3%
United States of America Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 13%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HRB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HRB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-04-30 3,262 3
2021-04-30 3,203 679 407 7
2020-04-30 3,159 642 394 7
NYSE:HRB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 3,095 607 444
2019-01-31 3,155 860 705
2018-10-31 3,175 871 582
2018-07-31 3,167 884 604
2018-04-30 3,160 850 625
2018-01-31 3,095 604 266
2017-10-31 3,058 624 408
2017-07-31 3,049 601 413
2017-04-30 3,036 552 420
2017-01-31 3,006 549 335
2016-10-31 3,029 415 357
2016-07-31 3,026 453 358

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • H&R Block's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • H&R Block's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HRB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from H&R Block Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HRB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-04-30
2021-04-30 2.04 2.17 1.94 4.00
2020-04-30 1.95 2.00 1.86 4.00
NYSE:HRB Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 2.16
2019-01-31 3.41
2018-10-31 2.80
2018-07-31 2.90
2018-04-30 2.99
2018-01-31 1.28
2017-10-31 1.96
2017-07-31 1.97
2017-04-30 1.97
2017-01-31 1.55
2016-10-31 1.61
2016-07-31 1.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • H&R Block is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess H&R Block's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
H&R Block has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare H&R Block's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • H&R Block's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • H&R Block's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • H&R Block's 1-year earnings growth is negative, it can't be compared to the US Consumer Services industry average.
Earnings and Revenue History
H&R Block's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from H&R Block Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HRB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 3,094.88 444.22 722.17
2019-01-31 3,155.29 705.01 684.08
2018-10-31 3,175.33 581.85 667.72
2018-07-31 3,167.31 604.46 671.24
2018-04-30 3,159.93 625.42 668.15
2018-01-31 3,095.00 266.42 701.76
2017-10-31 3,058.45 408.17 705.23
2017-07-31 3,048.93 413.08 686.19
2017-04-30 3,036.31 419.91 675.95
2017-01-31 3,005.88 334.76 624.70
2016-10-31 3,028.54 357.35 637.50
2016-07-31 3,025.62 358.29 661.54
2016-04-30 3,038.15 382.84 719.41
2016-01-31 3,042.05 425.66 647.05
2015-10-31 3,076.58 469.01 637.12
2015-07-31 3,082.79 498.30 602.14
2015-04-30 3,078.66 485.97 605.56
2015-01-31 3,340.28 671.00 612.13
2014-10-31 3,030.97 493.58 604.60
2014-07-31 3,030.69 503.80 607.24
2014-04-30 3,024.30 499.41 611.08
2014-01-31 2,661.52 259.30 584.36
2013-10-31 2,933.73 455.16 603.45
2013-07-31 2,936.65 457.01 604.26
2013-04-30 2,905.94 464.62 587.29
2013-01-31 2,706.41 367.44 563.03
2012-10-31 2,897.71 380.87 587.77
2012-07-31 2,889.64 359.06 601.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst H&R Block made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • H&R Block used its assets more efficiently than the US Consumer Services industry average last year based on Return on Assets.
  • H&R Block's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess H&R Block's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
H&R Block has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is H&R Block's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up H&R Block's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • H&R Block is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • H&R Block's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of H&R Block's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from H&R Block Company Filings, last reported 1 month ago.

NYSE:HRB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 541.53 1,513.53 1,572.15
2019-01-31 -213.59 1,876.99 203.23
2018-10-31 -31.33 1,491.33 600.80
2018-07-31 192.01 1,496.04 979.12
2018-04-30 393.71 1,522.84 1,544.94
2018-01-31 -698.07 2,285.25 187.37
2017-10-31 -412.77 1,494.83 181.00
2017-07-31 -214.33 1,494.41 551.57
2017-04-30 -60.88 1,523.60 1,011.33
2017-01-31 -800.82 2,593.56 221.17
2016-10-31 -557.47 1,968.11 232.51
2016-07-31 -199.81 1,492.65 307.99
2016-04-30 23.10 1,535.30 896.80
2016-01-31 -536.73 2,627.75 190.66
2015-10-31 -27.24 1,502.75 362.80
2015-07-31 1,669.43 506.00 1,705.74
2015-04-30 1,832.95 540.09 2,446.82
2015-01-31 1,146.39 1,097.73 1,688.98
2014-10-31 1,238.68 506.36 1,008.67
2014-07-31 1,397.20 906.42 1,833.26
2014-04-30 1,556.55 944.77 2,608.80
2014-01-31 686.76 1,101.51 437.40
2013-10-31 954.98 906.58 790.77
2013-07-31 1,105.32 906.63 1,163.88
2013-04-30 1,263.55 906.68 1,747.58
2013-01-31 634.89 1,331.69 418.39
2012-10-31 692.93 1,506.80 1,260.90
2012-07-31 845.67 1,009.63 939.87
  • H&R Block's level of debt (279.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (60.7% vs 279.5% today).
  • Debt is well covered by operating cash flow (40.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.7x coverage).
X
Financial health checks
We assess H&R Block's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. H&R Block has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.62%
Current annual income from H&R Block dividends. Estimated to be 3.57% next year.
If you bought $2,000 of H&R Block shares you are expected to receive $72 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • H&R Block's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • H&R Block's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase H&R Block before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HRB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HRB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-04-30 1.01 3.00
2021-04-30 1.03 5.00
2020-04-30 1.02 5.00
NYSE:HRB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-14 1.040 3.625
2019-06-11 1.040 3.683
2019-03-06 1.000 3.872
2018-11-01 1.000 3.885
2018-08-23 1.000 3.850
2018-06-15 1.000 4.073
2018-06-12 1.000 3.982
2018-02-28 0.960 3.562
2017-11-03 0.960 3.656
2017-08-21 0.960 3.649
2017-06-16 0.960 3.132
2017-06-13 0.960 3.315
2017-03-01 0.880 3.621
2016-11-10 0.880 3.929
2016-08-25 0.880 3.883
2016-06-17 0.880 3.724
2016-06-09 0.880 3.768
2016-03-03 0.800 3.447
2015-11-05 0.800 2.343
2015-08-20 0.800 2.256
2015-05-07 0.800 2.503
2015-03-04 0.800 2.511
2014-11-06 0.800 2.381
2014-08-22 0.800 2.547
2014-05-08 0.800 2.535
2014-03-05 0.800 2.751
2013-11-12 0.800 2.730
2013-08-22 0.800 2.866
2013-05-30 0.800 2.697
2013-03-06 0.800 2.837
2012-11-12 0.800 3.923
2012-08-23 0.800 4.667
2012-05-10 0.800 5.092
2012-03-01 0.800 4.945
2011-12-08 0.800 4.913
2011-08-15 0.600 4.156
2011-05-25 0.600 3.924
2011-02-22 0.600 3.667
2010-11-30 0.600 4.647
2010-07-29 0.600 4.659
2010-05-05 0.600 3.811
2010-02-22 0.600 3.392
2009-11-30 0.600 2.813
2009-07-28 0.600 3.289

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of H&R Block's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess H&R Block's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can H&R Block afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. H&R Block has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of H&R Block's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Jones
COMPENSATION $11,935,150
AGE 50
TENURE AS CEO 1.7 years
CEO Bio

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 Advance Auto Parts, Inc. since February 11, 2019. He was President and Chief Executive Officer-Designate at H&R Block, Inc. from August 2017 to October 2017. Mr. Jones served as the President of Ridesharing at Uber Technologies, Inc. from October 2016 to March 2017. He took care of the growing ride-services. He served as the Chief Marketing Officer and Executive Vice President of Target Corporation from April 2, 2012 to September 9, 2016. Prior to his time at Target Corporation, Mr. Jones was Partner and President of McKinney Ventures LLC from March 2006 to March 2012. He was a Partner of McKinney & Silver LLC and also served as its President until April 2012. He served as the Chief Marketing Officer of J. S. Mckinney, Inc. He served as an Executive Vice President of Marketing at The Gap, Inc. since April 1, 2004 and served as its Chief Marketing Officer. He managed Gap, Inc.'s gift card subsidiary, Direct Consumer Services, LLC serving as President of the division. He oversaw all aspects of Marketing and Brand Communications for The Gap Inc., GapKids, babyGap and GapBody. He served at marchFIRST, Inc., Coca-Cola Company and Leo Burnett Worldwide. He served as President and Chief Executive Officer of LB Works. He has worked to shape the strategic direction and communications for some of the world's most premier brand organizations, including Procter & Gamble, Miller Brewing Company and General Motors. He has an extensive experience in leading global marketing strategy and operations across a variety of industries including consumer products and retail. Mr. Jones serves as an Advisor to The Mayo Clinic and Brit Media, Inc. (d/b/a Brit+Co). Over the years, he has been a member of Young President Organization (YPO); advised early-stage technology companies such as Zoove and Curiour Sense; and served various non-profit and industry organizations such as Chicago Children’s Advocacy Center, Durham Academy, The Nasher Museum of Art at Duke University, Coach K Center on Leadership and Ethics at Fuqua Business School and the Association of National Advertisers. Mr. Jones speaks reqularly on business transformation, creating modern organizations, ethics and leadership and crisis management. He serves as a Member of Retail Advisory Board at Point Inside, Inc. Mr. Jones holds a Bachelor of Arts degree in Communications from the University of Dayton.

CEO Compensation
  • Insufficient data for Jeff to compare compensation growth.
  • Jeff's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the H&R Block management team in years:

3.1
Average Tenure
48
Average Age
  • The tenure for the H&R Block management team is about average.
Management Team

Jeff Jones

TITLE
CEO, President & Director
COMPENSATION
$12M
AGE
50
TENURE
1.7 yrs

Tony Bowen

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
43
TENURE
3.1 yrs

Kellie Logerwell

TITLE
Chief Accounting Officer
COMPENSATION
$620K
AGE
48
TENURE
2.9 yrs

Tom Gerke

TITLE
Chief Administrative Officer & General Counsel
COMPENSATION
$4M
AGE
62
TENURE
3.1 yrs

Henry Bloch

TITLE
Co-Founder & Honorary Chairman
AGE
96
TENURE
64.4 yrs

Vinoo Vijay

TITLE
Chief Marketing Officer
TENURE
1.2 yrs

Tiffany Monroe

TITLE
Chief People Officer
AGE
45
TENURE
1.3 yrs

Colby Brown

TITLE
Vice President and Corporate Controller
AGE
44
TENURE
8.8 yrs

Kip Knight

TITLE
Senior Vice President of U.S. Franchise & International
COMPENSATION
$2M
AGE
61
TENURE
7.2 yrs

Karen Orosco

TITLE
Senior Vice President of U.S. Retail Sales & Service
AGE
47
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure and age of the H&R Block board of directors in years:

7.8
Average Tenure
60
Average Age
  • The tenure for the H&R Block board of directors is about average.
Board of Directors

Bob Gerard

TITLE
Chairman of the Board
COMPENSATION
$455K
AGE
73
TENURE
8.2 yrs

Jeff Jones

TITLE
CEO, President & Director
COMPENSATION
$12M
AGE
50
TENURE
2.4 yrs

Henry Bloch

TITLE
Co-Founder & Honorary Chairman
AGE
96

Bruce Rohde

TITLE
Independent Director
COMPENSATION
$278K
AGE
69
TENURE
8.9 yrs

Paul Brown

TITLE
Independent Director
COMPENSATION
$262K
AGE
51
TENURE
7.8 yrs

Victoria Reich

TITLE
Director
COMPENSATION
$272K
AGE
60
TENURE
7.8 yrs

David Lewis

TITLE
Independent Director
COMPENSATION
$264K
AGE
67
TENURE
14.7 yrs

Christy Wood

TITLE
Director
COMPENSATION
$255K
AGE
58
TENURE
10.9 yrs

Dick Johnson

TITLE
Director
COMPENSATION
$263K
AGE
60
TENURE
3.8 yrs

Angela Archon

TITLE
Director
COMPENSATION
$250K
AGE
58
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
31. Aug 18 Sell Thomas Gerke Individual 30. Aug 18 30. Aug 18 -70,000 $26.54 $-1,857,800
25. Jun 18 Buy Robert Gerard Individual 22. Jun 18 22. Jun 18 1,000 $23.18 $23,180
X
Management checks
We assess H&R Block's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. H&R Block has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Estimating The Fair Value Of H&R Block, Inc. (NYSE:HRB)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $442.80 $538.00 $479.09 $446.29 $428.56 $420.15 $417.82 $419.62 $424.32 $431.13 Growth Rate Estimate Source Analyst x1 Analyst x2 Est @ -10.95% Est @ -6.85% Est @ -3.97% Est @ -1.96% Est @ -0.55% Est @ 0.43% Est @ 1.12% Est @ 1.6% Present Value ($, Millions) Discounted @ 9.55% $404.20 $448.29 $364.40 $309.86 $271.61 $243.07 $220.65 $202.28 $186.71 $173.17 Present Value of 10-year Cash Flow (PVCF)= $2.82b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$431m × (1 + 2.7%) ÷ (9.6% – 2.7%) = US$6.5b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$6.5b ÷ ( 1 + 9.6%)10 = $2.61b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $5.43b.

Simply Wall St -

Do You Like H&R Block, Inc. (NYSE:HRB) At This P/E Ratio?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for H&amp;R Block: P/E of 7.93 = $27.02 ÷ $3.41 (Based on the trailing twelve months to January 2019.) Is A High Price-to-Earnings Ratio Good? … NYSE:HRB Price Estimation Relative to Market, May 21st 2019 Its relatively low P/E ratio indicates that H&amp;R Block shareholders think it will struggle to do as well as other companies in its industry classification. … The Bottom Line On H&amp;R Block's P/E Ratio H&amp;R Block trades on a P/E ratio of 7.9, which is below the US market average of 17.7.

Simply Wall St -

What Makes H&R Block, Inc. (NYSE:HRB) A Great Dividend Stock?

(NYSE:HRB) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Unfortunately, one common occurrence with dividend companies is for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.

Simply Wall St -

Introducing H&R Block (NYSE:HRB), A Stock That Climbed 14% In The Last Three Years

(NYSE:HRB) share price is up 14% in the last three years, that falls short of the market return. … During three years of share price growth, H&R Block achieved compound earnings per share growth of 28% per year. … This EPS growth is higher than the 4.4% average annual increase in the share price.

Simply Wall St -

Are Insiders Selling H&R Block, Inc. (NYSE:HRB) Stock?

In the last twelve months, the biggest single sale by an insider was when Chief Administrative Officer & General Counsel Thomas Gerke sold US$1.9m worth of shares at a price of US$26.54 per share. … So we know that an insider sold shares at around the present share price of US$24.76. … Thomas Gerke was the only individual insider to sell shares in the last twelve months

Simply Wall St -

H&R Block, Inc. (NYSE:HRB): Commentary On Fundamentals

(NYSE:HRB) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of HRB, it

Simply Wall St -

Why H&R Block, Inc.’s (NYSE:HRB) Return On Capital Employed Is Impressive

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should Investors Buy H&R Block, Inc. (NYSE:HRB) And Lock In The 4.2% Dividend Yield?

In the past ten years, H&R Block has also grown its dividend from $0.60 to $1. … Below, I have outlined more attractive dividend aspects for H&R Block for income investors who may be interested in new dividend stocks for their portfolio. … reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market

Simply Wall St -

Do You Like H&R Block, Inc. (NYSE:HRB) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … H&R Block has a price to earnings ratio of 8.96, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is There An Opportunity With H&R Block, Inc.'s (NYSE:HRB) 20.94% Undervaluation?

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation, digital do-it-yourself (DIY) tax solutions, and other services and products related to income tax return preparation 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 by franchisees. It also develops and markets DIY income tax preparation software online, as well as through third-party retail stores and direct mail; and provides DIY tax services, including preparation of 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. In addition, the company develops and offers applications for mobile devices, which offer tax return preparation solutions and related services and products. Further, it provides refund transfers, H&R Block Emerald Advance lines of credit, H&R Block Emerald Prepaid MasterCard, Peace of Mind Extended Service Plan, Tax Identity Shield, and refund advance loans; POM, an Instant Cash Back refund option; and H&R Block Pay with Refund option. H&R Block, Inc. was founded in 1946 and is headquartered in Kansas City, Missouri.

Details
Name: H&R Block, Inc.
HRB
Exchange: NYSE
Founded: 1946
$5,794,239,543
201,960,249
Website: http://www.hrblock.com
Address: H&R Block, Inc.
One H&R Block Way,
Kansas City,
Missouri, 64105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HRB Common Stock New York Stock Exchange US USD 02. Jan 1969
DB HRB Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
LSE 0HOB Common Stock London Stock Exchange GB USD 02. Jan 1969
Number of employees
Current staff
Staff numbers
3,100
H&R Block employees.
Industry
Specialized Consumer Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:34
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/06/14
Last earnings reported: 2019/04/30
Last annual earnings reported: 2019/04/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.