HR Block Stock Buy Hold or Sell Recommendation

HRB
 Stock
  

USD 41.58  0.06  0.14%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding HR Block is 'Strong Hold'. Macroaxis provides HR Block buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HR Block positions. The advice algorithm takes into account all of HR Block's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from HR Block's buy-and-hold perspective. Please check HR Block Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as HR Block and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards HR Block.

Execute HR Block Buy or Sell Advice

The HR Block recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on HR Block. Macroaxis does not own or have any residual interests in HR Block or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute HR Block's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell HR BlockBuy HR Block
Strong Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon HR Block has a Risk Adjusted Performance of (0.041835), Jensen Alpha of (0.11), Total Risk Alpha of (0.16) and Treynor Ratio of (0.11)
HR Block trade advice module can be used to check and cross-verify current advice provided by analysts inspecting the entity's potential to grow using all of fundamental, technical, data market data available at this moment. To make sure HR Block is not overpriced, please check out all HR Block fundamentals, including its price to sales, cash per share, and the relationship between the number of shares shorted and ebitda . Given that HR Block has a price to book of 27.09 X, we strongly advise you to confirm HR Block market performance and probability of bankruptcy to ensure the company can sustain itself this quarter and beyond given your latest risk tolerance and investing horizon.

HR Block Trading Alerts and Improvement Suggestions

HR Block generated a negative expected return over the last 90 days
HR Block has a frail financial position based on the latest SEC disclosures
Over 93.0% of the company shares are owned by institutional investors
Latest headline from news.google.com: Heres One Hot Stock That Could Fundamentally Rise Even Higher - Barchart

HR Block Returns Distribution Density

The distribution of HR Block's historical returns is an attempt to chart the uncertainty of HR Block's future price movements. The chart of the probability distribution of HR Block stock daily returns describes the distribution of returns around its average expected value. We use HR Block price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of HR Block returns is essential to provide solid investment advice for HR Block.
Mean Return-0.06Value At Risk-3.42
Potential Upside2.77Standard Deviation2.00
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of HR Block historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

HR Block Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(98.58 M)(95.49 M)(81.69 M)(52.79 M)(61.95 M)(66.85 M)
Depreciation Amortization and Accretion183.29 M166.69 M169.54 M156.85 M142.18 M161.45 M
Net Cash Flow or Change in Cash and Cash Equivalents546.14 M44.05 M1.17 B(1.81 B)(533.45 M)(547.49 M)
Net Cash Flow Business Acquisitions and Disposals(2.57 M)(10.97 M)(410.32 M)25.64 M(5.02 M)(5.42 M)
Issuance Purchase of Equity Shares19.19 M(187.38 M)(254.14 M)(189.15 M)(556.84 M)(600.8 M)
Payment of Dividends and Other Cash Distributions(200.47 M)(205.46 M)(204.87 M)(195.07 M)(186.48 M)(201.2 M)
Net Cash Flow from Financing(190.66 M)(403.69 M)1.53 B(2.41 B)(1.26 B)(1.29 B)
Net Cash Flow from Investing(112.06 M)(155.13 M)(470.23 M)(45.52 M)(76.54 M)(78.56 M)
Net Cash Flow Investment Acquisitions and Disposals(22.32 M)(19.92 M)(35.26 M)(26.92 M)(18.47 M)(18.95 M)
Net Cash Flow from Operations850 M606.54 M108.96 M625.93 M808.54 M736.22 M
Effect of Exchange Rate Changes on Cash(1.14 M)(3.66 M)(5.29 M)18.32 M(8.1 M)(8.74 M)
Share Based Compensation21.95 M23.77 M28.05 M28.27 M34.25 M31.47 M

HR Block Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to HR Block or Diversified Consumer Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that HR Block's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a HR Block stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.11
β
Beta against NYSE Composite0.65
σ
Overall volatility
2.03
Ir
Information ratio -0.07

HR Block Volatility Alert

HR Block exhibits very low volatility with skewness of -0.94 and kurtosis of 1.42. However, we advise investors to further study HR Block technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure HR Block's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact HR Block's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

HR Block Implied Volatility

HR Block's implied volatility exposes the market's sentiment of HR Block stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if HR Block's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that HR Block stock will not fluctuate a lot when HR Block's options are near their expiration.

HR Block Fundamentals Vs Peers

Comparing HR Block's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze HR Block's direct or indirect competition across all of the common fundamentals between HR Block and the related equities. This way, we can detect undervalued stocks with similar characteristics as HR Block or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of HR Block's fundamental indicators could also be used in its relative valuation, which is a method of valuing HR Block by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare HR Block to competition
FundamentalsHR BlockPeer Average
Return On Asset0.15 %(0.14) %
Profit Margin0.16 %(1.27) %
Operating Margin0.21 %(5.51) %
Current Valuation8.17 B16.62 B
Shares Outstanding155.47 M571.82 M
Shares Owned by Insiders0.93 %10.09 %
Shares Owned by Institutions93.35 %39.21 %
Number of Shares Shorted12.64 M4.71 M
Price to Earning87.78 X28.72 X
Price to Book27.09 X9.51 X
Price to Sales1.87 X11.42 X
Revenue3.46 B9.43 B
Gross Profit1.58 B27.38 B
EBITDA882.56 M3.9 B
Net Income553.67 M570.98 M
Cash and Equivalents885.01 M2.7 B
Cash per Share5.53 X5.01 X
Total Debt1.49 B5.32 B
Debt to Equity9.10 %48.70 %
Current Ratio1.39 X2.16 X
Book Value Per Share1.32 X1.93 K
Cash Flow from Operations808.54 M971.22 M
Short Ratio6.98 X4.00 X
Earnings Per Share3.05 X3.12 X
Price to Earnings To Growth0.86 X4.89 X
Target Price38.75
Number of Employees3.8 K18.84 K
Beta0.61-0.15
Market Capitalization6.46 B19.03 B
Total Asset3.27 B29.47 B
Retained Earnings44.1 M9.33 B
Working Capital182.69 M1.48 B
Current Asset1.22 B9.34 B
   Acquisition by Matthew Winter of 4679 shares of HR Block subject to Rule 16b-3 [view details]

About HR Block Buy or Sell Advice

When is the right time to buy or sell HR Block? Buying financial instruments such as HR Block Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable203.1 M198.08 M160.93 M165.16 M
Receivables123.34 M181.74 M54.77 M56.21 M

Use Investing Ideas to Build Portfolios

In addition to having HR Block in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Obamacare Thematic Idea Now

Obamacare
Obamacare Theme
Health care services and providers including hospitals, clinics and nursing homes that hope to benefit from Obamacare program. The Obamacare theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Obamacare Theme or any other thematic opportunities.
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Please check HR Block Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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When running HR Block price analysis, check to measure HR Block's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HR Block is operating at the current time. Most of HR Block's value examination focuses on studying past and present price action to predict the probability of HR Block's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move HR Block's price. Additionally, you may evaluate how the addition of HR Block to your portfolios can decrease your overall portfolio volatility.
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Is HR Block's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HR Block. If investors know HR Block will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HR Block listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.455
Market Capitalization
6.5 B
Quarterly Revenue Growth YOY
(0.07) 
Return On Assets
0.1499
The market value of HR Block is measured differently than its book value, which is the value of HR Block that is recorded on the company's balance sheet. Investors also form their own opinion of HR Block's value that differs from its market value or its book value, called intrinsic value, which is HR Block's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HR Block's market value can be influenced by many factors that don't directly affect HR Block's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HR Block's value and its price as these two are different measures arrived at by different means. Investors typically determine HR Block value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HR Block's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.