(HRB) H&R Block - Overview
Sector: Consumer Cyclical | Industry: Personal Services | Exchange: NYSE (USA) | Market Cap: 4.930m USD | Total Return: -29.2% in 12m
Avg Turnover: 101M
EPS Trend: 78.9%
Qual. Beats: 1
Rev. Trend: 98.0%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
H&R Block, Inc. (HRB) provides assisted and do-it-yourself tax preparation services across the United States, Canada, and Australia. The company utilizes a multi-channel distribution model comprising company-owned retail offices, franchise locations, and digital platforms, including mobile applications and desktop software.
The business model extends beyond seasonal tax filing to include year-round financial products such as the Spruce mobile banking platform, Emerald Prepaid Mastercard, and various refund-related credit products. The tax services industry is characterized by high seasonal volatility, with the majority of annual revenue typically generated during the first four months of the calendar year. In addition to consumer services, the company offers small business solutions covering payroll, bookkeeping, and payment processing.
Investors can evaluate the company’s historical performance and dividend stability on ValueRay. Founded in 1955 and headquartered in Kansas City, Missouri, H&R Block operates within the specialized consumer services sector, where it competes on the basis of technical expertise, data security, and integrated financial technology.
- Assisted tax preparation volume and pricing power drive core seasonal revenue
- Digital DIY market share gains against competitors impact long-term growth valuation
- Spruce mobile banking adoption determines success of year-round financial services pivot
- Federal tax code changes and filing complexities influence consumer demand for expertise
- High dividend yield and aggressive share repurchases support total shareholder returns
| Net Income: 739.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA 2.46 > 1.0 |
| NWC/Revenue: -0.15% < 20% (prev -9.25%; Δ 9.09% < -1%) |
| CFO/TA 0.25 > 3% & CFO 838.3m > Net Income 739.4m |
| Net Debt (1.67b) to EBITDA (1.06b): 1.59 < 3 |
| Current Ratio: 1.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (129.5m) vs 12m ago -4.48% < -2% |
| Gross Margin: 54.48% > 18% (prev 0.45%; Δ 5.40k% > 0.5%) |
| Asset Turnover: 117.9% > 50% (prev 114.4%; Δ 3.47% > 0%) |
| Interest Coverage Ratio: 11.57 > 6 (EBITDA TTM 1.06b / Interest Expense TTM 80.9m) |
| A: -0.00 (Total Current Assets 1.29b - Total Current Liabilities 1.29b) / Total Assets 3.39b |
| B: -0.03 (Retained Earnings -110.5m / Total Assets 3.39b) |
| C: 0.28 (EBIT TTM 936.0m / Avg Total Assets 3.32b) |
| D: -0.05 (Book Value of Equity -164.3m / Total Liabilities 3.42b) |
| Altman-Z'' = 1.73 = BBB |
| DSRI: 0.80 (Receivables 297.6m/352.4m, Revenue 3.91b/3.71b) |
| GMI: 0.82 (GM 54.48% / 44.53%) |
| AQI: 0.95 (AQ_t 0.42 / AQ_t-1 0.44) |
| SGI: 1.05 (Revenue 3.91b / 3.71b) |
| TATA: -0.03 (NI 739.4m - CFO 838.3m) / TA 3.39b) |
| Beneish M = -3.37 (Cap -4..+1) = AA |
As of May 29, 2026, the stock is trading at USD 38.30 with a total of 1,374,981 shares traded.
Over the past week, the price has changed by -3.77%,
over one month by +21.55%,
over three months by +26.77% and
over the past year by -29.21%.
H&R Block has received a consensus analysts rating of 2.75. Therefore, it is recommended to hold HRB.
- StrongBuy: 0
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 39.5 | 3.1% |
P/E Trailing = 6.9571
P/E Forward = 6.6534
P/S = 1.2603
P/B = 73.5597
P/EG = 0.5323
Revenue TTM = 3.91b USD
EBIT TTM = 936.0m USD
EBITDA TTM = 1.06b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 209.3m USD (from shortTermDebt, last quarter)
Debt = 2.56b USD (from shortLongTermDebtTotal, last quarter) + Leases 534.8m
Net Debt = 1.67b USD (calculated: Debt 2.56b - CCE 886.7m)
Enterprise Value = 6.60b USD (4.93b + Debt 2.56b - CCE 886.7m)
Interest Coverage Ratio = 11.57 (Ebit TTM 936.0m / Interest Expense TTM 80.9m)
EV/FCF = 8.68x (Enterprise Value 6.60b / FCF TTM 760.9m)
FCF Yield = 11.52% (FCF TTM 760.9m / Enterprise Value 6.60b)
FCF Margin = 19.45% (FCF TTM 760.9m / Revenue TTM 3.91b)
Net Margin = 18.90% (Net Income TTM 739.4m / Revenue TTM 3.91b)
Gross Margin = 54.48% ((Revenue TTM 3.91b - Cost of Revenue TTM 1.78b) / Revenue TTM)
Gross Margin QoQ = 56.97% (prev 84.91%)
Tobins Q-Ratio = 1.95 (Enterprise Value 6.60b / Total Assets 3.39b)
Interest Expense / Debt = 3.16% (Interest Expense 80.9m / Debt 2.56b)
Taxrate = 16.50% (167.7m / 1.02b)
NOPAT = 781.6m (EBIT 936.0m * (1 - 16.50%))
Current Ratio = 1.00 (Total Current Assets 1.29b / Total Current Liabilities 1.29b)
Debt / Equity = -105.1 (out of range, set to none) (Debt 2.56b / totalStockholderEquity, last quarter -24.4m)
Debt / EBITDA = 1.59 (Net Debt 1.67b / EBITDA 1.06b)
Debt / FCF = 2.20 (Net Debt 1.67b / FCF TTM 760.9m)
Total Stockholder Equity = -327.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 22.28% (Net Income 739.4m / Total Assets 3.39b)
RoE = -340.9% (negative equity) (Net Income TTM 739.4m / Total Stockholder Equity -216.9m)
RoCE = 73.46% (EBIT 936.0m / Capital Employed (Equity -216.9m + L.T.Debt 1.49b))
RoIC = 34.76% (NOPAT 781.6m / Invested Capital 2.25b)
WACC = 4.80% (E(4.93b)/V(7.49b) * Re(5.92%) + D(2.56b)/V(7.49b) * Rd(3.16%) * (1-Tc(0.16)))
Discount Rate = 5.92% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -4.13%
[DCF] Terminal Value 77.97% ; FCFF base≈715.8m ; Y1≈820.6m ; Y5≈1.21b
[DCF] Fair Price = 130.2 (EV 18.2b - Net Debt 1.67b = Equity 16.5b / Shares 126.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 78.89 | EPS CAGR: 9.43% | SUE: 1.07 | # QB: 1
Revenue Correlation: 97.97 | Revenue CAGR: 4.23% | SUE: 3.30 | # QB: 1
EPS next Quarter (2026-09-30): EPS=-1.41 | Chg30d=-3.68% | Revisions=-20% | Analysts=1
EPS current Year (2026-06-30): EPS=5.16 | Chg30d=+3.20% | Revisions=+50% | GrowthEPS=+10.7% | GrowthRev=+4.0%
EPS next Year (2027-06-30): EPS=5.82 | Chg30d=+4.39% | Revisions=+50% | GrowthEPS=+12.8% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: +50%