Stock

H&R Block

HRB
45
Personal Products & Services · Consumer Cyclical
Also trades as: 0HOB.L GBP 0.43 (+1.92%)
Price
$43.16
+0.53 (+1.24%)
Market Cap
$5.47B
Winston Score
45
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 8, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
10/30
Growth
Mixed
8/20
Cash Flow
Exceptional
10/10
Stability
Mixed
3/10
Valuation
Strong
7/10
Ownership
Weak
2/15
Dividends
Exceptional
5/5

45 of 100 counted points = Winston Score 45.

Share count falling — buybacks

−25.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 171.4M (2022) → 127.0M (2026)

§Winston Score History

The full picture

H&R Block helps everyday people file their taxes. It offers in-person tax preparation at retail offices, a do-it-yourself online filing product, and tax software you can buy and install at home. The main customers are individual taxpayers, including people with simple returns and small business owners. H&R Block is one of the largest consumer tax preparation companies in the United States.

The company makes money by charging fees for each tax return it prepares or helps file, whether in a physical office or through its digital products. It operates primarily in the United States, with some presence in Canada and Australia, and generates most of its revenue during the January-to-April tax season. Its large network of retail locations and a recognizable brand give it a durable position, but the main risk is that the IRS or government-backed free filing programs could reduce demand for paid tax preparation services over time.

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Score breakdown

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Quality

Profit per sale
Gross Margin
89.7%
Premium pricing power — 89.7% gross margin
Profit after running costs
Operating Margin
-14224.5%
Losing money on operations — -14224.5%
Return on the money invested
ROCE
-9.7%
Weak — -9.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
-25.5%
Shrinking sales (-25.5% YoY)
Profit growth
EPS YoY
+26.9%
Earnings growing fast (+26.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
190%
Turns 190% of profit into real cash
Spare cash per sale
FCF Margin
27.2%
Converts sales into free cash efficiently (27.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
22.78
Heavy debt load (22.78)
Covers its interest
Interest Cover
7.37x
Adequate interest coverage (7.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
7.4x
Attractive valuation — P/E 7.4

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
+0.1
GROWING
Earnings roughly flat

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Dividends

Dividend
Dividend Yield
4.08%
Healthy income — 4.08% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
+11.3%
Dividend growing fast (11.3% YoY)

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