H&R Block
Market Cap
US$3.1b
Last Updated
2021/01/21 23:04 UTC
Data Sources
Company Financials +
Executive Summary
H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation, do-it-yourself (DIY) tax, and virtual tax preparation services and products to the general public primarily in the United States, Canada, and Australia. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 5.3% per year for the next 3 years
+ 2 more risks
Snowflake Analysis
Established dividend payer and good value.
Similar Companies
Share Price & News
How has H&R Block's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HRB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: HRB's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
3.4%
HRB
10.1%
US Consumer Services
1.4%
US Market
1 Year Return
-31.6%
HRB
34.3%
US Consumer Services
22.6%
US Market
Return vs Industry: HRB underperformed the US Consumer Services industry which returned 23.7% over the past year.
Return vs Market: HRB underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| HRB | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.4% | 10.1% | 1.4% |
| 30 Day | 10.0% | 10.8% | 4.9% |
| 90 Day | -9.4% | 10.3% | 14.6% |
| 1 Year | -27.0%-31.6% | 34.7%34.3% | 25.4%22.6% |
| 3 Year | -28.3%-37.8% | 63.5%57.7% | 46.8%37.0% |
| 5 Year | -37.3%-49.5% | 298.4%268.3% | 132.0%106.1% |
Long-Term Price Volatility Vs. Market
How volatile is H&R Block's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
These Metrics Don't Make H&R Block (NYSE:HRB) Look Too Strong1 month ago | Simply Wall St
H&R Block, Inc. (NYSE:HRB) Insiders Increased Their Holdings1 month ago | Simply Wall St
How Much Does H&R Block's (NYSE:HRB) CEO Make?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 ($16.67) is trading below our estimate of fair value ($41.64)
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 (15.6x) compared to the US Consumer Services industry average (26.4x).
PE vs Market: HRB is good value based on its PE Ratio (15.6x) compared to the US market (21.1x).
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 has negative assets, so we can't compare its PB Ratio to the US Consumer Services industry average.
Next Steps
Future Growth
How is H&R Block forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-5.3%
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 (-5.3% per year).
Earnings vs Market: HRB's earnings are forecast to decline over the next 3 years (-5.3% per year).
High Growth Earnings: HRB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HRB's revenue is expected to decline over the next 3 years (-4.4% per year).
High Growth Revenue: HRB's revenue is forecast to decline over the next 3 years (-4.4% 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 (146%).
Next Steps
Past Performance
How has H&R Block performed over the past 5 years?
-5.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HRB has a large one-off loss of $106.0M impacting its October 31 2020 financial results.
Growing Profit Margin: HRB's current net profit margins (6.6%) are lower than last year (14%).
Past Earnings Growth Analysis
Earnings Trend: HRB's earnings have declined by 5.3% per year over the past 5 years.
Accelerating Growth: HRB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HRB had negative earnings growth (-52.6%) over the past year, making it difficult to compare to the Consumer Services industry average (9.9%).
Return on Equity
High ROE: HRB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
Financial Health
How is H&R Block's financial position?
Financial Position Analysis
Short Term Liabilities: HRB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: HRB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: HRB has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: HRB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: HRB's debt is well covered by operating cash flow (34.6%).
Interest Coverage: HRB's interest payments on its debt are well covered by EBIT (5.1x coverage).
Balance Sheet
Next Steps
Dividend
What is H&R Block current dividend yield, its reliability and sustainability?
6.24%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HRB's dividend (6.24%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: HRB's dividend (6.24%) is in the top 25% of dividend payers in the US market (3.86%)
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 (97.1%), 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 (43.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Jeff Jones (52 yo)
3.25yrs
Tenure
US$6,921,199
Compensation
Mr. Jeffrey J. Jones, II, also known as Jeff, has been the Chief Executive Officer and President at H&R Block, Inc. since October 9, 2017 and has been its Director since 2017. Mr. Jones is Director of Adva...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD6.92M) is above average for companies of similar size in the US market ($USD5.00M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.25yrs | US$6.92m | 0.19% $ 5.8m | |
| Chief Financial Officer | 4.67yrs | US$2.09m | 0.042% $ 1.3m | |
| VP & Chief Accounting Officer | 4.5yrs | US$568.00k | 0.0067% $ 207.7k | |
| Chief Administrative Officer & General Counsel | 4.67yrs | US$1.88m | 0.053% $ 1.6m | |
| Senior Vice President of U.S. Retail Sales & Service | 2.67yrs | US$1.82m | 0.040% $ 1.2m | |
| Senior VP & Chief Information Officer | no data | no data | no data | |
| Chief People Officer | 2.83yrs | no data | no data | |
| Vice President and Corporate Controller | 10.33yrs | no data | no data | |
| Chief Strategy & Development Officer | 1.25yrs | no data | no data | |
| Chief Product & Experience Officer | 0.42yr | no data | no data | |
| Chief Financial Services Officer | 0.42yr | no data | no data | |
| Senior VP & GM of DIY Tax | no data | no data | no data |
3.0yrs
Average Tenure
49yo
Average Age
Experienced Management: HRB's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.25yrs | US$6.92m | 0.19% $ 5.8m | |
| Independent Director | 10.5yrs | US$274.60k | 0.0054% $ 168.7k | |
| Independent Director | 16.25yrs | US$263.35k | 0.0022% $ 67.5k | |
| Independent Director | 9.33yrs | US$277.35k | 0.0023% $ 71.8k | |
| Independent Director | 9.33yrs | US$260.85k | 0.0031% $ 96.3k | |
| Independent Director | 12.5yrs | US$257.35k | 0.0069% $ 212.4k | |
| Independent Director | 3.17yrs | US$268.60k | 0% $ 0 | |
| Independent Chairman | 9.75yrs | US$454.28k | 0.014% $ 439.0k | |
| Independent Director | 5.33yrs | US$264.85k | 0% $ 0 | |
| Independent Director | 1.17yrs | US$183.39k | 0% $ 0 | |
| Independent Director | 0.33yr | no data | no data |
9.3yrs
Average Tenure
62yo
Average Age
Experienced Board: HRB's board of directors are considered experienced (9.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HRB insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
H&R Block, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: H&R Block, Inc.
- Ticker: HRB
- Exchange: NYSE
- Founded: 1955
- Industry: Specialized Consumer Services
- Sector: Consumer Services
- Market Cap: US$3.096b
- Shares outstanding: 183.42m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HRB | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| HRB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
| 0HOB | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1969 |
| H1RB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation, do-it-yourself (DIY) tax, and virtual tax preparation services and products to the general public primarily in th...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:04 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/10/31 |
| Annual Earnings | 2020/04/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.