H&R Block HRB
United StatesConsumer Cyclical · Personal ServicesUSD
51.67 USD (+19.7%)
3 analysts
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H&R Block is a US financial services and tax preparation company, offering in-person and digital tax assistance to individuals and small businesses, as well as banking and accounting products.
Key points
from its scores- ✓Attractive valuation9.2
- ✓Favourable backdrop8.7
- ✓High-quality business8.5
- !Weak share-price trend5.0
- !Moderate growth5.2
AI analysis
bottom line, main risk, context and newsThe combination of cheap valuation, high return on capital and sustainable dividend (4.26%) offers an attractive defensive profile.
H&R Block presents solid financial health (net debt/EBITDA of 1.11), exceptional quality (ROIC of 58.53%) and a very attractive valuation (P/E of 7.59, FCF yield of 11.82%), although its growth is moderate (revenue +3.00%).
The main risk is the seasonality of its business, concentrated in the tax season, and potential competitive pressure from low-cost digital solutions that could erode its market share.
Context and risks
H&R Block operates in the tax preparation services sector in the US, with stable revenues and low sensitivity to interest rates or commodities. Its net debt/EBITDA of 1.11 is moderate, and its business does not depend on shipping routes or commodity cycles. The current macro context has no material direct impact on its activity.
Is H&R Block stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 51% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 7.6 | 17.8 | −58% |
| EV / EBITDA | 6.3 | 11.2 | −44% |
| Price / book | 45.6 | 2.9 | +1,489% |
| Price / sales | 1.3 | 1.3 | +7% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 9.2 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 51.67 USD, +19.7% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.5 (sector 5.7), Growth 5.2 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 7.6
- Forward P/E
- 6.2
- EV / EBITDA
- 6.3
- Price / book
- 45.6
- Price / sales
- 1.3
- PEG
- 0.54
- Market cap
- 5.3B USD
- Enterprise value
- 6.5B USD
Profitability
- ROE
- 713.5%
- ROA
- 17.4%
- ROIC (approx.)
- 58.5%
- Gross margin
- 44.3%
- Operating margin
- 32.9%
- Net margin
- 18.6%
- Free cash flow
- 624.8M USD
- FCF yield
- 11.8%
- Cash conversion
- 61%
Solvency
- Total debt
- 2.1B USD
- Net debt
- 1.1B USD
- Cash
- 958.7M USD
- EBITDA
- 1.0B USD
- Net debt / EBITDA
- 1.11
- Debt / equity
- 1,789.42
- Current ratio
- 1.13
- Quick ratio
- 1.02
Growth
- Revenue growth
- +3.0%
- Earnings growth
- +4.5%
- EPS (TTM)
- 5.69 USD
- EPS (forward)
- 6.92 USD
Dividend
- Dividend yield
- 4.3%
- Payout
- 29.5%
Risk and market
- Beta
- 0.39
- Analyst consensus
- Hold (3)
- Target price
- 51.67 USD
- 52-week range
- 28.16 – 58.67
Recent news
All HRB news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about H&R Block
Is H&R Block stock cheap or expensive?
On P/E and EV / EBITDA, it trades 51% below the Consumer Cyclical median on average. Valuation score: 9.2 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 51.67 USD, +19.7% versus the price. This is not investment advice.
What score does H&R Block get on MeridIAn Screener?
It scores 7.8 out of 10, rank 23 of 2,130 (better than 99% of the companies analysed). Its strongest category is Valuation (9.2) and its weakest, Momentum (5.0). Analysis of 08/10/2026.
What is H&R Block's P/E ratio?
Its P/E is 7.6: the share price equals 7.6 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 6.2.
How much is H&R Block worth on the stock market?
Its market capitalisation is 5.3B USD and its enterprise value, debt included, is 6.5B USD.
How much debt does H&R Block have?
Its net debt (debt minus cash) is 1.1B USD. That is 1.11 times its EBITDA; the Consumer Cyclical median is 1.91.
Does H&R Block pay a dividend?
Yes: its dividend yield is 4.26% and it pays out 30% of its earnings.
How has H&R Block stock performed over the last year?
It has fallen 11.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 28.16 and 58.67 USD. Past performance does not guarantee future results.
What do analysts think of H&R Block?
3 analysts cover it; their average recommendation is “Hold” and their average target is 51.67 USD (+19.7% versus the price). It is an estimate, not market data.