Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

H&R Block (HRB) is a company that provides assisted income tax return preparation services and operates in a mature industry. The company has seen stable revenue in recent years, with limited growth potential due to the threat of competition from DIY tax software. The balance sheet is strong, with healthy cash flow and aggressive share repurchases. However, recent results have shown weaker than expected tax season and flat growth, making it a less appealing investment for some experts.

Consensus
Mixed
Valuation
Fair Value
BUY
H&R Block
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

HRB provides assisted income tax return preparation service and is now trading at 10.2x times' Forward P/E. HRB operates in a mature industry. In the last few years, revenue has been stable (except for the drop in COVID years), but growth is very limited. Based on consensus estimates, sales are expected to grow by 2% going forward. As the industry faces a secular headwind by losing shares to Do-It-Yourself (DIY) tax software.
The balance sheet is strong, with net debt of $951M and net debt/EBITDA of 0.8x. The company generated healthy cash flow which was used to repurchase shares aggressively in the last few years. Overall, a 'value' type of name with lots of cash flow, a strong balance sheet but limited growth. Investors can do okay from here given the company continues buying back 5%-8% of its shares annually. We would not say it is recession 'proof' but certainly its business is largely stable, except for the threat of competition as noted above. 
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HOLD
H&R Block
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

HRB recently reported results with revenue essentially meeting estimates but EPS of $4.2 missed estimates of $4.46. Tax season came in weaker than HRB was expecting and guidance also came down because of this. They have a $900 mln buyback program available and the shares are cheap. We don't like to call dividends 'safe' but cash flows cover the dividend so we would not be too concerned on this front. We think a case can be made for HRB but with the flat growth, it is not a name that would really interest us.
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DON'T BUY
H&R Block
They compete with Intuit and lose. It's like bringing a knife to a gunfight.
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
H&R Block
(A Top Pick Sep 15/20, Up 55.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HRB has triggered its stop at $23. To remain disciplined, we recommend covering the balance of the position at this time. When combined with the previous recommendation to cover half the position, this results in a net investment gain of 45%. We will continue to monitor for another entry point.
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
H&R Block
(A Top Pick Sep 15/20, Up 69.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HRB is progressing well. We recommend trailing up the stop (from $20) to $23. Along with the previous recommendation to cover half the position, this would all but guarantee a net investment return of 45% if triggered.
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premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
H&R Block
(A Top Pick Sep 15/20, Up 66.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HRB continues to do well. We are now recommending to trail up the stop (from $15) to $20. If triggered, this would all but guarantee an investment return of 35% when considering the recommendation to cover 50% previously.
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premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
H&R Block
(A Top Pick Sep 15/20, Up 35.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with HRB has achieved its $20 objective. We recommend covering 50% of the position and trailing up the stop to $15. This would all but guarantee a minimum return exceeding 17%.
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premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
H&R Block
(A Top Pick Sep 15/20, Up 20.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK is advancing nicely. We recommend trailing the stop up to the original recommended buy price near $14.75 (up from $13.00 originally).
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premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
H&R Block
Stockchase Research Editor: Michael O'Reilly It will soon be tax time again and HRB is set to see a seasonal uptick in business. Latest earnings beat expectations by almost 50%. Although EPS was negative the company's investment in its online digital platform will better position it for this pandemic based economy. It pays a nice dividend, but its payout ratio of cash flow is a bit high at 84% -- we think improving earnings will keep it safe. We expect some technical resistance near $17, when breached will lead to a test of $20 -- 35% upside. We would trade this with a $13 stop-loss. Yield 7.07% (Analysts’ price target is $20.17)
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DON'T BUY
H&R Block

(Market call Minute) Uneven revenues and earnings. Own it in the season tax time.

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H&R Block(HRB-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for H&R Block is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

H&R Block(HRB-N) Frequently Asked Questions

What is H&R Block stock symbol?

H&R Block is a American stock, trading under the symbol HRB-N on the New York Stock Exchange (HRB). It is usually referred to as NYSE:HRB or HRB-N

Is H&R Block a buy or a sell?

In the last year, 2 stock analysts published opinions about HRB-N. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for H&R Block.

Is H&R Block a good investment or a top pick?

H&R Block was recommended as a Top Pick by on . Read the latest stock experts ratings for H&R Block.

Why is H&R Block stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is H&R Block worth watching?

2 stock analysts on Stockchase covered H&R Block In the last year. It is a trending stock that is worth watching.

What is H&R Block stock price?

On 2024-02-28, H&R Block (HRB-N) stock closed at a price of $49.66.