Don't Buy H&R Block (HRB) Before Checking Its Fundamentals!

Mid-cap consumer discretionary company H&R Block has moved 10.1% this afternoon, reaching $38.91 per share. In contrast, the average analyst target price for the stock is $36.67.

H&R Block, Inc., through its subsidiaries, provides assisted income tax return preparation and do-it-yourself (DIY) tax return preparation services and products to the general public primarily in the United States, Canada, and Australia. The company is based in the United States. H&R Block currently returns an annual dividend yield of 3.2%.

What to Consider if You Are Thinking of Buying H&R Block:

  • H&R Block has moved -18.0% over the last year.

  • HRB has a forward P/E ratio of 9.6 based on its EPS guidance of 4.05.

  • Over the last 3 years, earnings per share (EPS) have been growing at a compounded average rate of 321.7%.

  • The company has a price to earnings growth (PEG) ratio of 0.88.

H&R Block Has Generally Positive Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cashflow ($ k) YoY Growth (%)
2022-06-30 808,537 -61,955 746,582 30.26
2021-04-30 625,928 -52,792 573,136 2001.25
2020-04-30 108,961 -81,685 27,276 n/a

H&R Block's free cash flows are strong in the aggregate, since they average out to $449.0 Million over the last 3 years. But they are highly variable since their coefficient of variability is 83.6%. The compounded average growth rate for this period stands at 201.4%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.