(HRB) H&R Block - NYSE
Sector: Consumer Cyclical | Industry: Personal Services | Exchange: NYSE (USA) | Market Cap: 4.547m USD | Total Return: -31.5% in 12m
Avg Turnover: 84.9M
EPS Trend: 77.9%
Qual. Beats: 1
Rev. Trend: 98.0%
Qual. Beats: 1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
H&R Block, Inc. (HRB) is a leading provider of tax preparation services, offering both assisted and do-it-yourself (DIY) solutions across the United States, Canada, and Australia. The companys revenue is highly seasonal, concentrated in the U.S. tax season from January through April. Beyond core tax preparation, H&R Block generates recurring and complementary revenue through financial products such as Refund Transfers, Peace of Mind audit protection plans, Emerald Prepaid Mastercard and Spruce debit cards, Emerald Advance term loans, refund advance loans, and Tax Identity Shield services. The company has increasingly diversified into small business financial solutions, including payment processing, payroll, and bookkeeping services, which help reduce its reliance on seasonal tax revenue. H&R Block distributes its products through company-owned and franchised retail offices, online and mobile applications, virtual platforms, and desktop software. Founded in 1955 and headquartered in Kansas City, Missouri, HRB operates within the Consumer Discretionary sector under the Specialized Consumer Services sub-industry.
- IRS Direct File expansion threatens DIY market share
- Federal funds rate drives interest income on financial products
- Capital returns continue through dividends and buybacks
| 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 (1.05b): 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 44.53%; Δ 9.95% > 0.5%) |
| Asset Turnover: 117.9% > 50% (prev 114.4%; Δ 3.47% > 0%) |
| Interest Coverage Ratio: 11.49 > 6 (EBIT TTM 929.6m / 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 929.6m / Avg Total Assets 3.32b) |
| D: -0.01 (Book Value of Equity -24.4m / Total Liabilities 3.42b) |
| Altman-Z'' = 1.76 = BBB |
| DSRI: 0.80 (Receivables 297.6m/352.4m, Revenue 3.91b/3.71b) |
| GMI: 0.82 (GM 44.53% / 54.48%) |
| 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 = -3.35 (Cap -4..+1) = AA |
As of June 26, 2026, the stock is trading at USD 35.78 with a total of 1,199,790 shares traded. Over the past week, the price has changed by +1.30%, over one month by -6.84%, over three months by +17.52% and over the past year by -31.53%.
Current recommended Stop Loss: 33.80 (which is 5.5% or 1.4 ATR below the current price).
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 | 10.4% |
P/E Trailing = 6.4168
P/E Forward = 5.9773
P/S = 1.1624
P/B = 73.5597
P/EG = 0.4782
Revenue TTM = 3.91b USD
EBIT TTM = 929.6m USD
EBITDA TTM = 1.05b 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 = 6.22b USD (4.55b + Debt 2.56b - CCE 886.7m)
Interest Coverage Ratio = 11.49 (Ebit TTM 929.6m / Interest Expense TTM 80.9m)
EV/FCF = 8.18x (Enterprise Value 6.22b / FCF TTM 760.9m)
FCF Yield = 12.23% (FCF TTM 760.9m / Enterprise Value 6.22b)
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 = 1.83 (Enterprise Value 6.22b / Total Assets 3.39b)
Interest Expense / Debt = 3.16% (Interest Expense 80.9m / Debt 2.56b)
Taxrate = 12.54% (106.4m / 848.7m)
NOPAT = 813.0m (EBIT 929.6m * (1 - 12.54%))
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 1.05b)
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 = -225.8% (negative equity) (Net Income TTM 739.4m / Total Stockholder Equity -327.4m)
RoCE = 79.89% (EBIT 929.6m / Capital Employed (Equity -327.4m + L.T.Debt 1.49b))
RoIC = 38.51% (NOPAT 813.0m / Invested Capital 2.11b)
WACC = 4.71% (E(4.55b)/V(7.11b) * Re(5.81%) + D(2.56b)/V(7.11b) * Rd(3.16%) * (1-Tc(0.13)))
Discount Rate = 5.81% (= 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: 77.91 | EPS CAGR: 8.95% | SUE: 0.92 | # 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=+0.00% | Revisions=+50% | GrowthEPS=+10.7% | GrowthRev=+4.0%
EPS next Year (2027-06-30): EPS=5.82 | Chg30d=+0.00% | Revisions=+50% | GrowthEPS=+12.8% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: +50%