H&R Block
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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 3 days ago. More info.
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HRB Share Price and Events
7 Day Returns
1 Year Returns
HRB Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| H&R Block (HRB) | 5.2% | 4.9% | 17.1% | 20.4% | 24.6% | -14.6% |
| US Consumer Services | 1% | 3.7% | 7.3% | -3.2% | 104.6% | 104.6% |
| US Market | 0.3% | 0.4% | 0.6% | 0.7% | 37.2% | 37.4% |
1 Year Return vs Industry and Market
- HRB outperformed the Consumer Services industry which returned -3.2% over the past year.
- HRB outperformed the Market in United States of America which returned 0.7% over the past year.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for H&R Block.
| 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 | 8.4% |
| 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.
| 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%) (26.43%)) |
0.943 |
| 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% + (0.943 * 5.96%) |
8.35% |
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.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.35%) |
|
|---|---|---|---|
| 2019 | 442.80 | Analyst x1 | 408.67 |
| 2020 | 535.80 | Analyst x2 | 456.39 |
| 2021 | 547.10 | Analyst x2 | 430.10 |
| 2022 | 512.73 | Est @ -6.28% | 372.01 |
| 2023 | 494.39 | Est @ -3.58% | 331.05 |
| 2024 | 486.05 | Est @ -1.69% | 300.39 |
| 2025 | 484.30 | Est @ -0.36% | 276.23 |
| 2026 | 487.04 | Est @ 0.57% | 256.39 |
| 2027 | 492.96 | Est @ 1.22% | 239.50 |
| 2028 | 501.19 | Est @ 1.67% | 224.73 |
| Present value of next 10 years cash flows | $3,295.46 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $501.19 × (1 + 2.73%) ÷ (8.35% – 2.73%) |
$9,159.50 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $9,159.50 ÷ (1 + 8.35%)10 |
$4,107.10 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $3,295.46 + $4,107.10 |
$7,402.56 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $7,402.56 / 201.96 |
$36.65 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $36.65 |
| Current discount | Discount to share price of
$28.35
= -1 x ($28.35 - $36.65) / $36.65 |
22.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-04-30) in USD | $2.16 |
| NYSE:HRB Share Price ** | NYSE (2019-06-17) in USD | $28.35 |
| 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 3,093 Publicly-Listed Companies | 17.68x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of H&R Block.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:HRB Share Price ÷ EPS (both in USD) = 28.35 ÷ 2.16 |
13.11x |
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?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 13.11x |
| 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 .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 13.11x ÷ -4.4% |
-2.95x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-04-30) in USD | $2.68 |
| NYSE:HRB Share Price * | NYSE (2019-06-17) in USD | $28.35 |
| 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 5,245 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:HRB Share Price ÷ Book Value per Share (both in USD) = 28.35 ÷ 2.68 |
10.57x |
* 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.
Value checks
We assess H&R Block's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check) 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!
Earnings growth vs Low Risk Savings
- 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
| 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 | 13.8% |
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess H&R Block's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from H&R Block Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess H&R Block's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from H&R Block Company Filings, last reported 1 month ago.
| 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).
Financial health checks
We assess H&R Block's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) H&R Block has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
$2,000 of
H&R Block
shares you are expected to receive
$73
in your first year as a dividend.
Dividend Amount
- 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.
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.
| 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.
| 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 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-06-14 | 1.040 | 3.647 |
| 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).
- Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
Income/ dividend checks
We assess H&R Block's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The tenure for the H&R Block management team is about average.
Management Team
Jeff Jones
CEO, President & Director
$12M
50
1.7 yrs
Tony Bowen
Chief Financial Officer
$2M
43
3.1 yrs
Kellie Logerwell
Chief Accounting Officer
$620K
48
2.9 yrs
Tom Gerke
Chief Administrative Officer & General Counsel
$4M
62
3.1 yrs
Henry Bloch
Co-Founder & Honorary Chairman
96
64.4 yrs
Vinoo Vijay
Chief Marketing Officer
1.2 yrs
Tiffany Monroe
Chief People Officer
45
1.3 yrs
Colby Brown
Vice President and Corporate Controller
44
8.8 yrs
Kip Knight
Senior Vice President of U.S. Franchise & International
$2M
61
7.2 yrs
Karen Orosco
Senior Vice President of U.S. Retail Sales & Service
47
3.1 yrs
Board of Directors Tenure
Average tenure and age of the H&R Block board of directors in years:
- The tenure for the H&R Block board of directors is about average.
Board of Directors
Bob Gerard
Chairman of the Board
$455K
73
8.2 yrs
Jeff Jones
CEO, President & Director
$12M
50
2.4 yrs
Henry Bloch
Co-Founder & Honorary Chairman
96
Bruce Rohde
Independent Director
$278K
69
8.9 yrs
Paul Brown
Independent Director
$262K
51
7.8 yrs
Victoria Reich
Director
$272K
60
7.8 yrs
David Lewis
Independent Director
$264K
67
14.7 yrs
Christy Wood
Director
$255K
58
10.9 yrs
Dick Johnson
Director
$263K
60
3.8 yrs
Angela Archon
Director
$250K
58
3.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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 | $23,180 | ||
Management checks
We assess H&R Block's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) H&R Block has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Estimating The Fair Value Of H&R Block, Inc. (NYSE:HRB)
We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, 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 - – Full articleDo 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&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&R Block shareholders think it will struggle to do as well as other companies in its industry classification. … The Bottom Line On H&R Block's P/E Ratio H&R Block trades on a P/E ratio of 7.9, which is below the US market average of 17.7.
Simply Wall St - – Full articleWhat 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 - – Full articleIntroducing 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 - – Full articleAre 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 - – Full articleH&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 - – Full articleWhy 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 - – Full articleShould 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 - – Full articleDo 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 - – Full articleIs 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 - – Full articleCompany 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 |
| $5,725,573,059 | |
| 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
Industry
| Specialized Consumer Services | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/17 23:33 |
| End of day share price update: | 2019/06/17 00:00 |
| Last estimates confirmation: | 2019/06/17 |
| 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.
