H&R Block, Inc.

Valuation Analysis

About the Company

H&R Block, Inc., through its subsidiaries, provides assisted and do-it-yourself (DIY) tax return preparation services in the United States, Canada, and Australia. The company also provides Refund Transfers, that enable clients to receive their tax refunds by their chosen method of disbursement; Peace of Mind extended service plans, that represents clients when audited and assumes the cost; H&R Block Emerald Prepaid Mastercard and Spruce, which are debit cards that can be used for everyday purchases and ATM withdrawals; H&R Block Emerald Advance term loans; Tax Identity Shield that provides clients assistance in helping protect their tax identity and access to services to help restore their tax identity; refund advance loans; and H&R Block Instant Refund. In addition, it offers small busine

H&R Block, Inc. Stock at a Glance

H&R Block, Inc. (HRB) is currently trading at $36.52 with a market capitalization of $4.6B. The trailing P/E ratio stands at 6.53x, with a forward P/E of 6.27x. The 52-week range spans from $28.16 to $57.55; the current price is 36.5% below the yearly high. Year-over-year revenue growth stands at +5.3%. The net profit margin stands at 18.9%.

💰 Dividend

H&R Block, Inc. pays an annual dividend of $1.68 per share, representing a yield of 4.6%. The payout ratio stands at 29.25%.

📊 Analyst Rating

2 analysts rate H&R Block, Inc. (HRB) on consensus: None. The average price target is $39.50, implying +8.16% from the current price. Analyst price targets range from $29.00 to $50.00.

H&R Block, Inc.: The Investment Case in Detail

H&R Block, Inc. (HRB) operates in the Consumer Cyclical — specifically Personal Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

The combination of a 44.3% gross margin and 43.23% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Free cash flow is positive and net margins stand at 18.9%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Short interest sits at 23.04% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.51, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 5.66x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The dividend yield near 4.6% combined with a payout ratio of 29.25% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (23.04%).

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy H&R Block, Inc.?

Compare top-rated brokers — low fees, trusted providers, fully regulated.