H&R Block Inc. Common Stock (HRB)

FairStock Score: 87/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable demand, honest cash generation, and a price that leaves room for error. H&R Block prepares taxes, a need that repeats every year, and its brand and retail network give it some advantage. But this is not a high-growth enterprise. Filed results show fiscal 2026 revenue of $3.9B, net income of $733.6M, and diluted EPS of $5.66, compared with fiscal 2025 revenue of $3.8B, net income of $605.8M, and diluted EPS of $4.39. Fiscal Q3 2026, the quarter ended 2026-03-31, delivered $2.4B of revenue, $847.9M of net income, and $6.60 of diluted EPS. The off-season is painful: fiscal Q2 2026, ended 2025-12-31, had revenue of $198.9M and a net loss of $242.2M. That seasonality is normal but requires discipline. At the 2026-10-13 close, FairStock calculates a P/E of 7.70 and EV/EBITDA of 6.19, alongside a 14.0% free-cash-flow yield and 4.16% dividend yield. Those are appealing if cash flow persists. Yet FairStock also shows P/B of 46.14, ROE of 713.54%—distorted by thin equity—a Graham Number of $11.03, and a margin of safety of -297.37%. The Piotroski F-Score is 4/9 and Altman Z-Score is 1.83. FairStock calls it a slow grower, citing 4.7% annual profit growth and 2.9% revenue growth over five years. I see a decent, cash-producing tax preparer with limited growth; the earnings multiple is modest, but asset-based value offers no cushion.

In plain English: H&R Block helps people prepare taxes in the U.S., Canada, and Australia. The business produces plenty of cash, pays a solid dividend, and has been profitable, but its growth has been slow. At the recent price, the stock looks cheap compared with its earnings, yet very expensive compared with the company's accounting value, so it appears steady rather than clearly bargain-priced.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer