HRB Stock Analysis — H&R Block
Sector: Financials
AI Verdict
HRB is cheap for the growth you're getting, but the moat relies on continued relevance of in-person tax prep as digital alternatives expand.
Competitive Moat
H&R Block operates a dense national network of tax preparation offices, giving it a brand and convenience advantage for in-person filers. Its scale allows for consistent client acquisition and retention, especially among less tech-savvy customers who value face-to-face service.
Summary
HRB trades at just 7.6x next year's earnings while analysts expect nearly 8% EPS growth — unusually cheap for a stable, cash-generative business.
Where It Stands
With a trailing P/E of 8.2x and a forward P/E of 7.6x, HRB trades at a deep discount to the financials sector median of 14x, while delivering 7.9% forward EPS growth.
Key Metrics
- Trailing P/E: 8.2x
- Forward P/E: 7.6x
- PEG Ratio: 1.04
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Dividend Yield: 0.03%
- 52-Week High: $58.67
- 52-Week Low: $28.16
Analyst Consensus
1 Buy · 5 Hold · 6 Sell (12 analysts)
Bull Case
A 7.6x forward P/E for 7.9% expected EPS growth means you're paying a low price for steady earnings in a business with entrenched local presence.
Bear Case
If the P/E multiple were to fall from 7.6x to 6x (closer to deep value territory), the stock could lose over 20% even if earnings meet expectations.
Catalyst to Watch
Tax season volumes and client retention rates will show if HRB can keep growing EPS at the 7.9% pace analysts expect.