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On August 11, 2025 H&R Block announced a leadership succession plan: Jeffrey J. Jones II will retire as President and CEO effective December 31, 2025 and will serve as a Strategic Advisor through September 2026; Curtis Campbell, President of Global Consumer Tax and Chief Product Officer, will assume the CEO role on January 1, 2026.
Technical Analysis
ADX at 34.18 signals a strong trend environment; trend strength increases sensitivity to directional signals and raises the chance that short-term moves extend into multi-week action.
Directional indicators show bullish alignment: DI+ at 14.11 with a dip & reversal and DI- at 31.58 with a peak & reversal. Both DI line behaviors correspond to bullish pressure, supporting the idea that directional bias recently flipped in favor of buyers despite DI- remaining numerically larger.
MACD sits at -0.95 with a dip & reversal and a signal line at -1.02; MACD has crossed above its signal line, a bullish momentum confirmation that supports continued upside pressure from recent momentum shifts.
MRO reads -30.53, indicating the price sits below the model target and therefore contains potential upward pressure; the negative value coupled with a dip & reversal suggests meaningful reversion potential toward fair-value vectors in the near term.
RSI at 41.78 with a dip & reversal shows momentum recovering from a recent pullback; RSI remains below neutral, implying room for additional upside before overbought conditions appear.
Price behavior versus averages offers mixed context: the close at $51.37 sits above the 20-day average ($50.93) and just above the 12-day EMA ($51.10), while the 200-day average at $54.93 and Ichimoku signals (Chikou below the cloud) retain longer-term resistance. The price crossing above the -1x standard-deviation Bollinger band signals a short-term reversion toward the mean, but the SuperTrend upper at $52.18 and the 200-day average form nearby resistance levels to monitor for any sustained advance.
Fundamental Analysis
Profitability: EBIT totaled $383,610,000 and EBIT margin equals 34.53%. That EBIT margin sits above the industry peer range high of 26.90% (industry peer mean 19.60%, industry peer median 21.44%), indicating operating profitability materially above typical peers. Operating margin stands at 33.42% and return on sales at 33.42%.
Top line and growth: Total revenue registered $1,111,011,000 with revenue growth year-over-year at -0.30% and revenue growth quarter-over-quarter at -104.37%. YoY stability contrasts with sequential contraction; the negative QoQ reads reflect seasonal and period-specific shifts in activity.
Cash and cash flow: Cash and short-term investments total $983,277,000 and operating cash flow reached $251,561,000 with free cash flow of $241,311,000. Free cash flow yield equals 3.345% but shows a large sequential contraction quarter-over-quarter (-80.41%) and a YoY decline of -15.23%, signaling compression in free-cash conversion versus recent periods despite positive absolute cash balances.
Leverage and liquidity: Total debt measures $2,025,248,000 with net debt at $509,921,000; debt to assets equals 62.05%, and debt to equity equals 2,278.22% (reflecting very low reported equity of $88,896,000). Interest coverage stands at 24.24x, indicating ample capacity to service interest despite elevated leverage metrics driven by the small equity base. Current ratio reads 0.895 (below the industry peer mean of 0.771 but within the industry peer range), and the cash ratio equals 0.757.
Returns: Return on assets equals 9.20% and return on equity equals 336.84%, the latter reflecting the combination of net income and a very small equity denominator. Return on invested capital registers at 19.81%.
Valuation multiples: Forward PE stands at 43.84x, enterprise multiple at 19.98x, and forward PS at 45.18x. Price-to-book sits at 81.14x, well above the industry peer mean of 8.08 and industry peer median of 7.16. Those multiples indicate valuation sits at a premium to historical and typical market bearings on comparable metrics.
Capital allocation: Dividend yield equals 0.696% with a dividend payout ratio of 16.76% and dividend coverage of 5.97x; retained capital and ongoing buybacks noted in recent corporate disclosures shape cash return dynamics. WMDST values the stock as over-valued given current multiples vs. cash-flow and earnings dynamics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-13 |
| NEXT REPORT DATE: | 2025-11-12 |
| CASH FLOW | Begin Period Cash Flow | $ 789.7 M |
| Operating Cash Flow | $ 251.6 M | |
| Capital Expenditures | $ -10.25 M | |
| Change In Working Capital | $ -71.58 M | |
| Dividends Paid | $ -50.19 M | |
| Cash Flow Delta | $ 213.4 M | |
| End Period Cash Flow | $ 1.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.1 B | |
| Forward Revenue | $ 159.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 532.9 M | |
| Depreciation | $ 29.6 M | |
| Depreciation and Amortization | $ 29.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 739.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 578.1 M | |
| EBITDA | $ 413.2 M | |
| EBIT | $ 383.6 M | |
| Operating Income | $ 371.3 M | |
| Interest Income | — | |
| Interest Expense | $ 15.8 M | |
| Net Interest Income | $ -15.83 M | |
| Income Before Tax | $ 367.8 M | |
| Tax Provision | $ 67.4 M | |
| Tax Rate | 18.319 % | |
| Net Income | $ 299.4 M | |
| Net Income From Continuing Operations | $ 299.4 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 1.28 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.3 B | |
| Intangible Assets | $ 1.1 B | |
| Net Tangible Assets | $ -972.57 M | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 983.3 M | |
| Cash | $ 983.3 M | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 65.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 144.0 M | |
| Short-Term Debt | $ 349.9 M | |
| Total Current Liabilities | $ 1.3 B | |
| Net Debt | $ 509.9 M | |
| Total Debt | $ 2.0 B | |
| Total Liabilities | $ 3.2 B | |
| EQUITY | ||
| Total Equity | $ 88.9 M | |
| Retained Earnings | $ 12.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 0.66 | |
| Shares Outstanding | 133.947 M | |
| Revenue Per-Share | $ 8.29 | |
| VALUATION | Market Capitalization | $ 7.2 B |
| Enterprise Value | $ 8.3 B | |
| Enterprise Multiple | 19.979 | |
| Enterprise Multiple QoQ | 130.478 % | |
| Enterprise Multiple YoY | 25.473 % | |
| Enterprise Multiple IPRWA | high: 77.32 mean: 53.935 median: 51.0 HRB: 19.979 low: -5.653 |
|
| EV/R | 7.43 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 36.716 | |
| Asset To Liability | 1.028 | |
| Debt To Capital | 0.958 | |
| Debt To Assets | 0.621 | |
| Debt To Assets QoQ | 4.915 % | |
| Debt To Assets YoY | 71221.839 % | |
| Debt To Assets IPRWA | high: 0.816 HRB: 0.621 median: 0.423 mean: 0.385 low: 0.28 |
|
| Debt To Equity | 22.782 | |
| Debt To Equity QoQ | -328.911 % | |
| Debt To Equity YoY | 73605.015 % | |
| Debt To Equity IPRWA | HRB: 22.782 high: 4.763 median: 3.23 mean: 2.89 low: -2.487 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 81.141 | |
| Price To Book QoQ | -305.155 % | |
| Price To Book YoY | -0.231 % | |
| Price To Book IPRWA | HRB: 81.141 high: 16.594 mean: 8.08 median: 7.156 low: -0.498 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 6.492 | |
| Price To Sales QoQ | 93.836 % | |
| Price To Sales YoY | -6.365 % | |
| Price To Sales IPRWA | high: 10.477 mean: 9.355 median: 9.349 HRB: 6.492 low: 0.239 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 43.841 | |
| Forward PE/G | — | |
| Forward P/S | 45.179 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.191 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.341 | |
| Asset Turnover Ratio QoQ | -55.344 % | |
| Asset Turnover Ratio YoY | 3.32 % | |
| Asset Turnover Ratio IPRWA | high: 0.628 HRB: 0.341 mean: 0.141 median: 0.08 low: 0.06 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -8.165 | |
| CapEx To Revenue | -0.009 | |
| CapEx To Depreciation | -0.347 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.2 B | |
| Net Invested Capital | $ 1.6 B | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | $ -972.57 M | |
| Net Working Capital | $ -136.06 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.757 | |
| Current Ratio | 0.895 | |
| Current Ratio QoQ | 14.175 % | |
| Current Ratio YoY | -29.412 % | |
| Current Ratio IPRWA | high: 1.49 HRB: 0.895 mean: 0.771 median: 0.609 low: 0.341 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.901 | |
| Cost Of Debt | 0.656 % | |
| Interest Coverage Ratio | 24.236 | |
| Interest Coverage Ratio QoQ | -39.128 % | |
| Interest Coverage Ratio YoY | 4.475 % | |
| Interest Coverage Ratio IPRWA | HRB: 24.236 high: 8.3 mean: 5.796 median: 3.564 low: -2.856 |
|
| Operating Cash Flow Ratio | 0.177 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 18.252 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 5.966 | |
| Dividend Payout Ratio | 0.168 | |
| Dividend Rate | $ 0.37 | |
| Dividend Yield | 0.007 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.582 % | |
| Revenue Growth | -51.209 % | |
| Revenue Growth QoQ | -104.371 % | |
| Revenue Growth YoY | -0.3 % | |
| Revenue Growth IPRWA | high: 45.176 % mean: 10.707 % median: -0.812 % low: -4.597 % HRB: -51.209 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 52.032 % | |
| Gross Margin QoQ | -9.398 % | |
| Gross Margin YoY | -0.602 % | |
| Gross Margin IPRWA | high: 92.339 % HRB: 52.032 % mean: 31.536 % median: 25.477 % low: 24.953 % |
|
| EBIT Margin | 34.528 % | |
| EBIT Margin QoQ | -20.006 % | |
| EBIT Margin YoY | 0.256 % | |
| EBIT Margin IPRWA | HRB: 34.528 % high: 26.904 % median: 21.435 % mean: 19.601 % low: -26.956 % |
|
| Return On Sales (ROS) | 33.418 % | |
| Return On Sales QoQ | -22.577 % | |
| Return On Sales YoY | -2.967 % | |
| Return On Sales IPRWA | HRB: 33.418 % high: 26.256 % median: 20.834 % mean: 19.193 % low: -27.56 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 241.3 M | |
| Free Cash Flow Yield | 3.345 % | |
| Free Cash Flow Yield QoQ | -80.41 % | |
| Free Cash Flow Yield YoY | -15.231 % | |
| Free Cash Flow Yield IPRWA | HRB: 3.345 % high: 2.858 % mean: 1.337 % median: 0.745 % low: 0.587 % |
|
| Free Cash Growth | -81.47 % | |
| Free Cash Growth QoQ | -74.379 % | |
| Free Cash Growth YoY | 4.018 % | |
| Free Cash Growth IPRWA | high: 62.634 % mean: -16.919 % median: -50.71 % HRB: -81.47 % low: -383.68 % |
|
| Free Cash To Net Income | 0.806 | |
| Cash Flow Margin | 20.64 % | |
| Cash Flow To Earnings | 0.766 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 9.201 % | |
| Return On Assets QoQ | -62.058 % | |
| Return On Assets YoY | 14.769 % | |
| Return On Assets IPRWA | HRB: 9.201 % high: 5.171 % mean: 1.734 % median: 0.92 % low: -23.083 % |
|
| Return On Capital Employed (ROCE) | 19.519 % | |
| Return On Equity (ROE) | 3.368 | |
| Return On Equity QoQ | -189.925 % | |
| Return On Equity YoY | 18.363 % | |
| Return On Equity IPRWA | HRB: 3.368 high: 0.767 mean: 0.132 median: 0.079 low: 0.039 |
|
| DuPont ROE | -576.164 % | |
| Return On Invested Capital (ROIC) | 19.805 % | |
| Return On Invested Capital QoQ | -65.262 % | |
| Return On Invested Capital YoY | -177.056 % | |
| Return On Invested Capital IPRWA | HRB: 19.805 % high: 8.691 % mean: 3.728 % median: 2.59 % low: -31.748 % |
|