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H&R Block
(NYSE:HRB)
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Rating:71Outperform
Price Target:
$60.00
▲(41.74% Upside)
Action:Reiterated
Date:08/17/26
The score is supported by strong technical trend momentum, attractive valuation (low P/E and solid dividend yield), and constructive FY27 guidance with continued capital returns. The primary limiter is financial risk from very high leverage/thin equity and the latest-year operating-profit inconsistency, which reduces confidence in the stability of underlying operating earnings.
Positive Factors
Revenue and Margin Growth
Consistent revenue growth alongside faster EBITDA expansion indicates operating leverage and improving profitability. Higher client conversion, retention, pricing and mix can support durable earnings progress beyond a single tax season.
Negative Factors
Very High Leverage
The thin equity cushion leaves limited protection against weaker tax-season earnings or cash flow disruption. High leverage can constrain financial flexibility, increase refinancing sensitivity and limit the company’s ability to absorb execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Growth
Consistent revenue growth alongside faster EBITDA expansion indicates operating leverage and improving profitability. Higher client conversion, retention, pricing and mix can support durable earnings progress beyond a single tax season.
Read all positive factors
H&R Block (HRB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.56B
Dividend Yield3.19%
Average Volume (3M)1.92M
Price to Earnings (P/E)9.1
Beta (1Y)0.21
Revenue Growth4.90%
EPS Growth26.87%
CountryUS
Employees4,600
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)5.80
Shares Outstanding123,265,920
10 Day Avg. Volume1,695,009
30 Day Avg. Volume1,915,891
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)41.16
Price to Sales (P/S)1.23
P/FCF Ratio6.40
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.67Price Target Upside10.24% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)5.86
Revenue Forecast (FY)$4.05B
H&R Block Business Overview & Revenue Model
Company Description
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...
How the Company Makes Money
H&R Block primarily makes money by charging fees for tax preparation and filing services delivered through multiple channels. (1) Assisted tax preparation fees: The largest revenue driver is typically the preparation and filing of tax returns by t...
H&R Block Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong financial performance, margin expansion, robust free cash flow, sizable shareholder returns, meaningful improvements in client metrics (conversion, retention, product attachment) and tangible progress on ambitious technology and operating model initiatives. Near‑term headwinds include a moderated industry growth outlook tied to slower job growth, a higher normalized effective tax rate in FY27 (after a one‑time FY26 benefit), modest assisted volume growth, and some international/regulatory noise. Management outlined targeted investments (consultative model, automation, year‑round leadership) with expected short‑term costs (including an $8.3M severance charge) but presented multiple proof points that the strategy is yielding higher quality business and can support continued shareholder returns and margin progress.Positive Updates
Revenue Growth
Revenue increased 4.9% year‑over‑year to $3.95 billion in fiscal 2026, driven by higher net average charge (NAC), company‑owned assisted volume, international growth, and Wave small business momentum.
Negative Updates
Industry Growth Outlook Moderation
Management expects industry growth to moderate relative to historical norms (~1%) due to slowing job growth and softer payroll trends, creating a more constrained market backdrop for tax preparation demand.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Growth
Revenue increased 4.9% year‑over‑year to $3.95 billion in fiscal 2026, driven by higher net average charge (NAC), company‑owned assisted volume, international growth, and Wave small business momentum.
Read all positive updates
Company Guidance
For fiscal 2027 H&R Block guided revenue of $4.11–$4.16 billion, adjusted EBITDA of $1.11–$1.14 billion, adjusted diluted EPS of $6.14–$6.24 and an effective tax rate of ~23% (excluding an ~$8.3 million Q1 severance charge); the company expects to repurchase roughly $400 million of shares (with ~$600 million remaining under a $1.5 billion authorization) and raised the quarterly dividend 10% to $0.46, backing the outlook with durable cash flow after fiscal 2026 free cash flow of $756 million and $714 million returned to shareholders (including $500 million of repurchases that retired ~10.5 million shares, ~7.9%). The guide assumes a moderated but still-positive industry backdrop versus a historical ~1% growth rate, continued low single‑digit pricing and opportunistic franchise buybacks, and builds on fiscal 2026 momentum (FY26 revenue $3.95B, +4.9%; EBITDA $1.06B, +8.3% and 80 bps margin expansion; adjusted EPS $5.31, +13.9%; NAC +4.1%; assisted volume +2%) as well as operational gains like conversion +200 bps, retention +190 bps and product attachment +550 bps.H&R Block Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
69
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.95B | 3.76B | 3.61B | 3.47B | 3.46B |
| Gross Profit | 1.75B | 1.67B | 1.62B | 1.55B | 1.58B |
| EBITDA | 934.50M | 976.34M | 963.19M | 914.69M | 889.53M |
| Net Income | 733.60M | 605.77M | 595.32M | 553.70M | 553.67M |
Balance Sheet | |||||
| Total Assets | 3.26B | 3.26B | 3.22B | 3.07B | 3.27B |
| Cash, Cash Equivalents and Short-Term Investments | 958.71M | 1.00B | 1.08B | 1.02B | 1.05B |
| Total Debt | 2.10B | 2.35B | 2.23B | 2.18B | 2.15B |
| Total Liabilities | 3.14B | 3.18B | 3.13B | 3.04B | 3.06B |
| Stockholders Equity | 117.49M | 88.90M | 90.59M | 32.06M | 211.63M |
Cash Flow | |||||
| Free Cash Flow | 756.08M | 598.85M | 657.18M | 752.14M | 746.58M |
| Operating Cash Flow | 838.70M | 680.88M | 720.86M | 821.84M | 808.54M |
| Investing Cash Flow | -124.81M | -105.37M | -93.86M | -101.39M | -76.54M |
| Financing Cash Flow | -734.22M | -647.44M | -564.31M | -750.99M | -1.26B |
H&R Block Technical Analysis
Positive
42.33
Price Trends
43.45
Positive
38.92
Positive
38.01
Positive
Market Momentum
2.96
Negative
64.81
Neutral
54.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRB, the sentiment is Positive. The current price of 42.33 is below the 20-day moving average (MA) of 49.56, below the 50-day MA of 43.45, and above the 200-day MA of 38.01, indicating a bullish trend. The MACD of 2.96 indicates Negative momentum. The RSI at 64.81 is Neutral, neither overbought nor oversold. The STOCH value of 54.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRB.
H&R Block Risk Analysis
H&R Block disclosed 24 risk factors in its most recent earnings report. H&R Block reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
H&R Block Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.75B | 21.80 | 102.24% | ― | 9.26% | 12.10% | |
71 Outperform | $6.56B | 9.08 | -229.09% | 3.97% | 4.90% | 26.87% | |
71 Outperform | $3.59B | 23.34 | 14.42% | ― | 8.51% | 3.70% | |
70 Outperform | $552.70M | 12.20 | 17.07% | 1.16% | 1.33% | -16.56% | |
70 Neutral | $11.51B | 18.89 | 39.72% | 1.65% | 2.89% | 3.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
HRB
H&R Block
52.67
3.89
7.97%
CSV
Carriage Services
34.76
-9.29
-21.08%
SCI
Service International
85.38
6.99
8.92%
BFAM
Bright Horizons
74.46
-45.00
-37.67%
FTDR
frontdoor
83.68
21.68
34.97%
H&R Block Corporate Events
Executive/Board Changes
H&R Block Announces Retirement of Two Longtime Directors
Neutral
Aug 14, 2026
On August 12, 2026, HR Block announced that longtime directors Robert A. Gerard and Matthew E. Winter will retire from the Board and will not stand for re-election at the company’s 2026 Annual Meeting of Shareholders in November. The company...
DividendsFinancial Disclosures
H&R Block Raises Quarterly Dividend, Highlights Shareholder Focus
Positive
Aug 11, 2026
On August 11, 2026, HR Block’s board of directors approved a 10% increase in the company’s quarterly dividend to $0.46 per share, reinforcing its commitment to returning capital to shareholders. The board also declared a quarterly cash...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.