# H&R Block (HRB.US)

Canonical: https://gigainvestors.com/s/HRB

Analysis as of: 2026-10-16T07:29:08.086Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $48.31 per share; close as of 2026-10-15.

Estimated value: low $70.90 per share, central $79.68 per share, high $91.38 per share. Buy at or below the central value $79.68 per share. Valuation as of 2026-10-16T07:29:08.086Z; scenarios are not confidence intervals.

Expected annual return: 15.6% at the stated quote. About 15.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 1.10×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.24×

- FY2018: 0.24×

- FY2019: 0.20×

- FY2020: 0.07×

- FY2021: 0.22×

- FY2022: 0.22×

- FY2023: 0.22×

- FY2024: 0.22×

- FY2025: 0.22×

- FY2026: -0.33×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 56.5%

- ROIC, second-lowest year: 18.3%

- Typical minus recent gross margin: 0.4 pp

- Typical gross margin (annual median): 44.7%

- Recent gross margin (lower of latest and 3-year median): 44.3%

- Years with nonpositive capital: 3

- Capital spending / revenue: 2.1%

- ROIC including acquisitions, ten-year median: 49.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 33.4%

- FY2018: 41.8%

- FY2019: 24.7%

- FY2020: 18.3%

- FY2021: 71.2%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

- FY2026: -247.7%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.09×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.3B

- Net income, five-year total: $3.0B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -2.4 pp

- Working capital / revenue, final three-year average: -2.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.14×

- FY2023: 1.11×

- FY2024: 1.10×

- FY2025: 1.06×

- FY2026: 1.05×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 33.4% vs 102.2%

- Per-share earnings: 1.91 to 4.41 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -6.4%

- Ordinary dilution, 5-year annual growth: -5.8%

- Market cap gain: -$400M

- Cumulative retained earnings: $79M

- Diluted shares, 10-year annual growth: -6.4%

- Diluted shares, 5-year annual growth: -5.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.0%

- Per-share value change: $2.50

- Per-share value, starting three-year median: $1.91

- Per-share value, ending three-year median: $4.41

- Buybacks concentrated in cheaper years (correlation): 0.15

- Average buyback yield: 6.4%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $295M

- Cumulative net income, 10 years: $5.0B

- ROIC, first three-year median: 33.4%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.91

- FY2018: $2.98

- FY2019: $2.04

- FY2020: -$0.04

- FY2021: $3.19

- FY2022: $3.23

- FY2023: $3.52

- FY2024: $4.14

- FY2025: $4.41

- FY2026: $5.69

### accounting: pass

- Sloan accruals: -3.2%

- Receivables to sales index (DSRI): 0.87×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.14×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 9.19×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.2%

- FY2018: -9.1%

- FY2019: -5.6%

- FY2020: -2.3%

- FY2021: -2.0%

- FY2022: -7.8%

- FY2023: -8.7%

- FY2024: -3.9%

- FY2025: -2.3%

- FY2026: -3.2%

## Holders

## Price story

Down 24% since Sep 2024 · sales +4.9%

Story as of 2026-10-16T09:58:54.208Z; price observation 2026-10-15.

Price needs cash profits to shrink 6.2% a year for ten years

- 2026-08-14: HRB Q2 Deep Dive: Client Mix Shift and Tech Investments Drive Guidance Upside ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/hrb-q2-deep-dive-client-145300544.html))

### Sales · FY2025–2026

sales +4.9%; source https://www.sec.gov/Archives/edgar/data/12659/000001265926000026/hrb-20260630.htm; observed 2026-08-14.

- FY2017: $3.0B 

- FY2018: $3.2B 

- FY2019: $3.1B 

- FY2020: $2.6B 

- FY2021: $3.5B 

- FY2022: $3.5B 

- FY2023: $3.5B 

- FY2024: $3.6B 

- FY2025: $3.8B 

- FY2026: $3.9B 

### Gross margin · FY2026

gross margin 44.3%; source https://www.sec.gov/Archives/edgar/data/12659/000001265926000026/hrb-20260630.htm; observed 2026-08-14.

- FY2017: 45.8% 

- FY2018: 44.9% 

- FY2019: 43.2% 

- FY2020: 35.1% 

- FY2021: 45.7% 

- FY2022: 45.7% 

- FY2023: 44.6% 

- FY2024: 44.8% 

- FY2025: 44.5% 

- FY2026: 44.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in personal services; annual sales are USD 3.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/12659/000001265926000026/hrb-20260630.htm (filed 2026-08-14); FY2026: revenue 3945392000; grossProfit 1748985000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HRB.US: H&R Block, Inc., through its subsidiaries, provides assisted and do-it-yourself (DIY) tax preparation solutions in the United States, Canada, and Australia. The company offers tax preparation services, such as assisted income tax return preparation and related services through a system of retail offices operated directly or through its franchisees in person or virtually; refund transfers for clients to receive tax refunds; Peace of Mind, an extended service plan; and H&R Block Emerald Prepaid Mastercard and Spruce debit cards. It also provides H&R Block Emerald Advance, a term loan; Tax Identity Shield, a program for protection of tax identity and access to services to help restore tax identity; refund advance loans; H&R Block's Instant Refund, an advance refund; and small business financial solutions, such as payment processing, payroll and bookkeeping services. H&R Block, Inc. was incorporated in 1955 and is headquartered in Kansas City, Missouri.

### Why customers stay

Margins ranged from 44.3% to 44.8% during 2024–26; it earns 56.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2024: grossProfit / revenue = 44.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2025: grossProfit / revenue = 44.5%.

- Source: https://www.sec.gov/Archives/edgar/data/12659/000001265926000026/hrb-20260630.htm (filed 2026-08-14); FY2026: grossProfit / revenue = 44.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); 10-year return on capital observations [[2017,0.33441158787098824],[2018,0.4177517473440998],[2019,0.24724959226453888],[2020,0.18294197258063088],[2021,0.7124557896402471],[2022,1.1480724119400008],[2023,1.4191159852514206],[2024,1.3789043281677926],[2025,1.0221124401876065],[2026,-2.477261700114538]]; median 0.5651037684921735. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 46% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/12659/000001265926000026/hrb-20260630.htm (filed 2026-08-14); Gross margin observations: [[2021,0.4567960338062005],[2022,0.4567960338062005],[2023,0.44603988554757307]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 512.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2017: growth capex 0; upkeep 89255000; owner earnings 501858000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2018: growth capex 0; upkeep 98583000; owner earnings 697861000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2019: growth capex 0; upkeep 95490000; owner earnings 493714000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2020: growth capex 0; upkeep 81685000; owner earnings 80325000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2021: growth capex 0; upkeep 52792000; owner earnings 657734000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2022: growth capex 0; upkeep 61955000; owner earnings 633897000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2023: growth capex 0; upkeep 69698000; owner earnings 614503000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2024: growth capex 0; upkeep 63678000; owner earnings 653423000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); FY2025: growth capex 0; upkeep 82034000; owner earnings 640566000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/12659/000001265926000026/hrb-20260630.htm (filed 2026-08-14); FY2026: growth capex 0; upkeep 82614000; owner earnings 773422000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); Dividend observations: [[2017,187115000],[2018,200469000],[2019,205461000],[2020,204870000],[2021,195068000],[2022,186476000],[2023,177925000],[2024,179775000],[2025,197330000],[2026,211005000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/12659/000001265926000026/hrb-20260630.htm (filed 2026-08-14); FY2026: cash repurchases 512905000 USD.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HRB.US SharesStats.PercentInsiders = 0.6930000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 6.2% yearly over ten years; actual growth was 12.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-14); Ten-year compound average after fade. Initial solved rate -0.10036428208889553. Price 48.31; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.7859244551826423 → FY2026 6.001753759719398. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $22.97 per share

- 2016-11: $22.16 per share

- 2016-12: $22.99 per share

- 2017-01: $21.46 per share

- 2017-02: $20.56 per share

- 2017-03: $23.25 per share

- 2017-04: $24.79 per share

- 2017-05: $26.54 per share

- 2017-06: $30.91 per share

- 2017-07: $30.50 per share

- 2017-08: $26.74 per share

- 2017-09: $26.48 per share

- 2017-10: $24.74 per share

- 2017-11: $26.18 per share

- 2017-12: $26.22 per share

- 2018-01: $26.54 per share

- 2018-02: $25.33 per share

- 2018-03: $25.41 per share

- 2018-04: $27.65 per share

- 2018-05: $27.45 per share

- 2018-06: $22.78 per share

- 2018-07: $25.16 per share

- 2018-08: $27.06 per share

- 2018-09: $25.75 per share

- 2018-10: $26.54 per share

- 2018-11: $27.01 per share

- 2018-12: $25.37 per share

- 2019-01: $23.59 per share

- 2019-02: $24.15 per share

- 2019-03: $23.94 per share

- 2019-04: $27.21 per share

- 2019-05: $26.25 per share

- 2019-06: $29.30 per share

- 2019-07: $27.69 per share

- 2019-08: $24.22 per share

- 2019-09: $23.62 per share

- 2019-10: $24.99 per share

- 2019-11: $24.38 per share

- 2019-12: $23.48 per share

- 2020-01: $23.20 per share

- 2020-02: $20.67 per share

- 2020-03: $14.08 per share

- 2020-04: $16.65 per share

- 2020-05: $17.00 per share

- 2020-06: $14.28 per share

- 2020-07: $14.50 per share

- 2020-08: $14.50 per share

- 2020-09: $16.29 per share

- 2020-10: $17.26 per share

- 2020-11: $18.80 per share

- 2020-12: $15.86 per share

- 2021-01: $17.23 per share

- 2021-02: $19.23 per share

- 2021-03: $21.80 per share

- 2021-04: $22.26 per share

- 2021-05: $24.82 per share

- 2021-06: $23.48 per share

- 2021-07: $24.55 per share

- 2021-08: $25.65 per share

- 2021-09: $25.00 per share

- 2021-10: $23.07 per share

- 2021-11: $23.68 per share

- 2021-12: $23.56 per share

- 2022-01: $22.86 per share

- 2022-02: $24.81 per share

- 2022-03: $26.04 per share

- 2022-04: $26.07 per share

- 2022-05: $35.24 per share

- 2022-06: $35.32 per share

- 2022-07: $39.96 per share

- 2022-08: $45.00 per share

- 2022-09: $42.54 per share

- 2022-10: $41.15 per share

- 2022-11: $43.71 per share

- 2022-12: $36.51 per share

- 2023-01: $38.98 per share

- 2023-02: $36.80 per share

- 2023-03: $35.25 per share

- 2023-04: $33.91 per share

- 2023-05: $29.85 per share

- 2023-06: $31.87 per share

- 2023-07: $33.61 per share

- 2023-08: $39.98 per share

- 2023-09: $43.06 per share

- 2023-10: $41.05 per share

- 2023-11: $45.42 per share

- 2023-12: $48.37 per share

- 2024-01: $46.84 per share

- 2024-02: $48.95 per share

- 2024-03: $49.11 per share

- 2024-04: $47.23 per share

- 2024-05: $49.64 per share

- 2024-06: $54.23 per share

- 2024-07: $57.94 per share

- 2024-08: $63.31 per share

- 2024-09: $63.55 per share

- 2024-10: $59.73 per share

- 2024-11: $59.28 per share

- 2024-12: $52.84 per share

- 2025-01: $55.31 per share

- 2025-02: $54.51 per share

- 2025-03: $54.91 per share

- 2025-04: $60.37 per share

- 2025-05: $56.95 per share

- 2025-06: $54.89 per share

- 2025-07: $54.34 per share

- 2025-08: $50.35 per share

- 2025-09: $50.57 per share

- 2025-10: $49.74 per share

- 2025-11: $42.12 per share

- 2025-12: $43.58 per share

- 2026-01: $39.45 per share

- 2026-02: $30.62 per share

- 2026-03: $31.74 per share

- 2026-04: $31.73 per share

- 2026-05: $38.49 per share

- 2026-06: $38.08 per share

- 2026-07: $44.03 per share

- 2026-08: $51.65 per share

- 2026-09: $40.85 per share

- 2026-10: $48.31 per share

## Annual estimated value (USD per share)

- FY2017: low $28.26 per share, central $31.48 per share, high $35.76 per share

- FY2018: low $27.78 per share, central $31.61 per share, high $36.70 per share

- FY2019: low $35.20 per share, central $38.93 per share, high $43.90 per share

- FY2020: low $37.53 per share, central $40.73 per share, high $44.99 per share

- FY2021: low $47.63 per share, central $62.77 per share, high $72.70 per share

- FY2022: low $46.14 per share, central $51.71 per share, high $59.13 per share

- FY2023: low $48.73 per share, central $54.62 per share, high $62.46 per share

- FY2024: low $65.27 per share, central $82.08 per share, high $94.82 per share

- FY2025: low $69.26 per share, central $85.83 per share, high $99.17 per share

- FY2026: low $67.39 per share, central $75.74 per share, high $86.86 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/12659/000001265926000026/hrb-20260630.htm); period 2026-06-30, filed 2026-08-14.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.