1.63%
4.90%
-7.20%
-4.33%
18.34%
142.48%
138.92%
AI Spotlight on HRB
Company Description
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 offers assisted income tax return preparation and related services through a system of retail offices operated directly by the company or its franchisees.It also provides Refund Transfers and H&R Block Emerald Prepaid Mastercard, which enables clients to receive their tax refunds; Peace of Mind extended service plans; H&R Block Emerald Advance lines of credit; 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; H&R Block Instant Refund; and H&R Block Pay With Refund services.
In addition, the company offers small business financial solutions through its company-owned or franchise offices, and online.H&R Block, Inc.was founded in 1955 and is headquartered in Kansas City, Missouri.
Market Data
| Last Price | 55.43 |
| Change Percentage | 1.63% |
| Open | 54.79 |
| Previous Close | 54.54 |
| Market Cap ( Millions) | 7596 |
| Volume | 1192594 |
| Year High | 68.45 |
| Year Low | 42.28 |
| M A 50 | 55.64 |
| M A 200 | 56.31 |
Financial Ratios
| FCF Yield | 8.66% |
| Dividend Yield | 2.51% |
| ROE | -198.73% |
| Debt / Equity | -523.85% |
| Net Debt / EBIDTA | 162.62% |
| Price To Book | -21.07 |
| Price Earnings Ratio | 13.23 |
| Price To FCF | 11.55 |
| Price To sales | 2.1 |
| EV / EBITDA | 9.79 |
News
- Jan -23 - HRB Stock Consolidates for a Month: Is This a Buying Opportunity?
- Jan -21 - H&R Block Q2 Preview: Guidance And Comments On The Economy Are Crucial
- Jan -21 - H&R Block to Release Fiscal 2025 Second Quarter Results on February 4, 2025
- Jan -14 - What PMI Data Says About the NFP Report: 3 Hidden Opportunities
- Jan -14 - What Tax Filers Need to Know To Get The Best Outcome This Tax Season
- Jan -09 - FTC Fines H&R Block $7 Million, Orders Changes to Advertising, Service Practices
- Jan -09 - Here's Why H&R Block Stock is a Compelling Pick for You Right Now
- Jan -08 - FTC Finalizes $7 Million Settlement With H&R Block
- Dec -18 - H&R Block's 2024 Outlook on American Life Data Shows Rise in Consumer Debt Amidst Increased Holiday Spending
- Dec -05 - H&R Block Names George Agurkis as Vice President of Government Relations
- Dec -03 - H&R Block Stock Rises 27% in a Year: What You Should Know
- Dec -01 - H&R Block CEO: Americans need a 'high-functioning IRS'
- Nov -27 - 3 Reasons Why Growth Investors Shouldn't Overlook H&R Block (HRB)
- Nov -25 - H&R Block CEO Sees Optimistic Consumer, AI Opportunities
- Nov -22 - Here's Why H&R Block Stock is a Compelling Pick Right Now
- Nov -19 - H&R Block, Intuit stocks fall on news of a potential free tax-filing app by Trump transition team
- Nov -13 - H&R Block Agrees to $7M FTC Settlement and Will Make Downgrading Tax Tiers Easier
- Nov -12 - H&R Block to Settle FTC Lawsuit Alleging Deceptive Claims
- Nov -10 - H&R Block: Attractive Entry Point, Buy The Dip
- Nov -08 - H&R Block's Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Assisted Tax Preparation
Expected Growth : 2.5 %
What the company do ?
Assisted Tax Preparation from H&R Block, Inc. offers personalized tax preparation services, where experienced tax professionals guide clients through the tax filing process.
Why we expect these perspectives ?
H&R Block's Assisted Tax Preparation growth is driven by increasing demand for professional tax services, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital transformation and customer experience enhancements are attracting new clients and increasing retention rates, contributing to a 2.5% growth rate.
Segment n°2 -> Do It Yourself Tax Preparation
Expected Growth : 1.8 %
What the company do ?
H&R Block's DIY tax preparation allows individuals to prepare and file their taxes online, with guidance and support, at an affordable cost.
Why we expect these perspectives ?
The 1.8% growth of H&R Block's DIY tax preparation segment is driven by increasing consumer adoption of digital tax filing, expansion of online services, and strategic marketing efforts. Additionally, the rise of gig economy and self-employment has led to more individuals seeking DIY tax solutions, contributing to the segment's growth.
Segment n°3 -> International
Expected Growth : 2.2 %
What the company do ?
H&R Block's International segment provides tax preparation services in Canada and other countries outside the United States.
Why we expect these perspectives ?
H&R Block's international segment growth of 2.2% is driven by increasing demand for digital tax preparation services, expansion into new markets, and strategic partnerships. Additionally, the company's efforts to enhance its online platform and mobile app have improved customer experience, leading to increased adoption and retention rates.
Segment n°4 -> Royalties
Expected Growth : 1.5 %
What the company do ?
Royalties from H&R Block, Inc. refer to the fees paid to the company for the use of its brand, operating system, and other intellectual property by its franchisees.
Why we expect these perspectives ?
The 1.5% growth in royalties from H&R Block, Inc. is driven by increasing demand for tax preparation services, expansion of digital platforms, and strategic partnerships. Additionally, the rise of the gig economy and self-employment has led to more individuals seeking tax filing services, contributing to the growth in royalties.
Segment n°5 -> Refund Transfers
Expected Growth : 2.8 %
What the company do ?
Refund Transfers from H&R Block, Inc. allow clients to receive their tax refund on a debit card or have it direct deposited into their bank account.
Why we expect these perspectives ?
The 2.8% growth in Refund Transfers from H&R Block, Inc. is driven by increasing demand for tax preparation services, expansion of digital platforms, and strategic partnerships. Additionally, the rise of the gig economy and self-employment has led to more individuals seeking refund transfer services. Furthermore, H&R Block's efforts to improve customer experience and enhance its refund transfer process have contributed to the growth.
Segment n°6 -> Peace of Mind Extended Service Plan
Expected Growth : 2.1 %
What the company do ?
The Peace of Mind Extended Service Plan from H&R Block, Inc. provides additional support and protection for tax preparation clients, including audit representation and identity theft protection.
Why we expect these perspectives ?
The 2.1% growth of Peace of Mind Extended Service Plan from H&R Block, Inc. is driven by increasing demand for tax preparation services, expansion of digital platforms, and strategic partnerships. Additionally, the plan's comprehensive coverage and customer loyalty programs contribute to its growth, as clients seek protection against tax-related issues and audit representation.
Segment n°7 -> Wave
Expected Growth : 3.0 %
What the company do ?
Wave is a financial management platform from H&R Block, Inc. that offers invoicing, payment tracking, and accounting tools for small businesses.
Why we expect these perspectives ?
Wave's 3.0 growth is driven by increasing adoption of digital tax preparation solutions, expansion into adjacent markets such as bookkeeping and payroll services, and strategic partnerships with financial institutions. Additionally, Wave's focus on serving small businesses and self-employed individuals, a growing demographic, contributes to its growth momentum.
Segment n°8 -> Emerald Card and Spruce
Expected Growth : 2.4 %
What the company do ?
The Emerald Card and Spruce are financial products from H&R Block, Inc., offering prepaid debit cards and mobile banking services for managing finances.
Why we expect these perspectives ?
The 2.4% growth of Emerald Card and Spruce from H&R Block, Inc. is driven by increasing adoption of digital tax preparation services, expansion of financial product offerings, and strategic partnerships. Additionally, the growing demand for mobile banking and digital payment solutions, as well as the company's efforts to enhance user experience and expand its customer base, contribute to this growth.
Segment n°9 -> Interest and Fee Income on Emerald Advance
Expected Growth : 1.9 %
What the company do ?
Interest and Fee Income on Emerald Advance from H&R Block, Inc. refers to the revenue generated from interest charges and fees on tax-related loans and credit products offered to clients.
Why we expect these perspectives ?
The 1.9% growth in Interest and Fee Income on Emerald Advance from H&R Block, Inc. is driven by increased adoption of digital tax preparation services, expansion of financial products offerings, and strategic partnerships. Additionally, the rise of gig economy and self-employment has led to higher demand for tax-related financial services, contributing to the growth.
Segment n°10 -> Other
Expected Growth : 2.0 %
What the company do ?
The 'Other' segment from H&R Block, Inc. refers to the company's non-tax preparation services, including business and accounting services, financial products, and other miscellaneous revenue streams.
Why we expect these perspectives ?
H&R Block's 'Other' segment growth is driven by increased demand for financial products and services, expansion of financial services to underserved markets, and strategic partnerships. Additionally, the company's investments in digital transformation and customer experience enhancements have contributed to the 2.0% growth.
Segment n°11 -> Tax Identity Shield
Expected Growth : 2.6 %
What the company do ?
Tax Identity Shield from H&R Block, Inc. is a service that helps protect users' tax identities and provides assistance in case of identity theft.
Why we expect these perspectives ?
The 2.6% growth of Tax Identity Shield from H&R Block, Inc. is driven by increasing demand for identity theft protection, expansion of digital tax preparation services, and strategic partnerships. Additionally, the rise of online tax filing and growing awareness of tax-related identity theft contribute to the segment's growth.
H&R Block, Inc. Products
| Product Range | What is it ? |
|---|---|
| Tax Preparation Services | H&R Block offers in-person and online tax preparation services, including filing of federal, state, and local taxes. |
| Tax Audit Representation | H&R Block provides representation services for clients audited by the IRS, including audit preparation and response. |
| Bookkeeping and Accounting Services | H&R Block offers bookkeeping and accounting services for small businesses, including financial statement preparation and budgeting. |
| Payroll Services | H&R Block provides payroll processing services, including payroll tax compliance and employee benefits administration. |
| Financial Products and Services | H&R Block offers a range of financial products and services, including refund anticipation loans and prepaid debit cards. |
| Tax Identity Shield | H&R Block's Tax Identity Shield provides identity theft protection and restoration services for taxpayers. |
| Online Tax Filing | H&R Block offers online tax filing services, including free filing options for simple returns. |
H&R Block, Inc.'s Porter Forces
Threat Of Substitutes
H&R Block's services are specialized and require expertise, making it difficult for substitutes to emerge.
Bargaining Power Of Customers
Customers have some bargaining power due to the availability of alternative tax preparation services, but H&R Block's brand recognition and convenience mitigate this power.
Bargaining Power Of Suppliers
H&R Block has a diverse supplier base, and its suppliers have limited bargaining power due to the company's large scale and negotiating power.
Threat Of New Entrants
While there are barriers to entry in the tax preparation industry, new entrants can still emerge, especially with the rise of digital tax preparation services.
Intensity Of Rivalry
The tax preparation industry is highly competitive, with many established players and new entrants vying for market share.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 98.37% |
| Debt Cost | 4.77% |
| Equity Weight | 1.63% |
| Equity Cost | 7.47% |
| WACC | 4.82% |
| Leverage | 6034.52% |
H&R Block, Inc. : Quality Control
H&R Block, Inc. passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
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Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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H&R Block
A-Score
1-Year Total Return ->
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Dillard's
A-Score
1-Year Total Return ->
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SCI
A-Score
1-Year Total Return ->
4
Rollins
A-Score
1-Year Total Return ->
5
Frontdoor
A-Score
1-Year Total Return ->
6
