HR Block Beneish M Score

HRB
 Stock
  

USD 43.45  0.26  0.59%   

This module uses fundamental data of HR Block to approximate the value of its Beneish M Score. HR Block M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check HR Block Piotroski F Score and HR Block Altman Z Score analysis.
  
HR Block Long Term Debt to Equity is projected to increase based on the last few years of reporting. The past year's Long Term Debt to Equity was at 7.03. The current year Debt to Equity Ratio is expected to grow to 8.27, whereas Total Debt is forecasted to decline to about 1.9 B. HR Block Interest Coverage is projected to decrease significantly based on the last few years of reporting. The past year's Interest Coverage was at 8.44. The current year Long Term Debt to Equity is expected to grow to 7.94, whereas Accrued Expenses Turnover is forecasted to decline to 6.94.
At this time, it appears that HR Block is an unlikely manipulator. The earnings manipulation may begin if HR Block's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by HR Block executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of HR Block's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.46
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality0.96Focus
Expense Coverage0.98Focus
Gross Margin Strengs0.93Focus
Accruals Factor0.98Focus
Depreciation Resistance0.84Focus
Net Sales Growth1.03Focus
Financial Leverage Condition0.88Focus

HR Block Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if HR Block's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense844.8 M837.1 M
Slightly Up
Increasing
Slightly volatile
Revenues3.6 B3.5 B
Fairly Up
Increasing
Stable
Trade and Non Trade Receivables60 M58.4 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net497.9 M551.7 M
Moderately Down
Increasing
Slightly volatile
Operating Income751.5 M744.9 M
Slightly Up
Decreasing
Stable
Net Cash Flow from Operations736.2 M808.5 M
Significantly Down
Increasing
Stable
Liabilities Non Current2.1 B2.1 B
Slightly Up
Increasing
Slightly volatile
Current Liabilities1.4 B998.8 M
Significantly Up
Decreasing
Slightly volatile
Total Liabilities3.5 B3.1 B
Fairly Up
Increasing
Very volatile
Investments Non Current186.9 M182.1 M
Fairly Up
Decreasing
Slightly volatile
Investments Current515.9 M505.6 M
Fairly Up
Increasing
Slightly volatile
Investments186.9 M182.1 M
Fairly Up
Decreasing
Slightly volatile
Gross Margin42.345.6796
Significantly Down
Increasing
Stable
Depreciation Amortization and Accretion161.4 M142.2 M
Moderately Up
Increasing
Slightly volatile
Debt Non Current1.7 B1.7 B
Fairly Down
Increasing
Slightly volatile
Debt Current205.5 M206.9 M
Slightly Down
Decreasing
Very volatile
Total Debt1.9 B1.9 B
Slightly Down
Increasing
Slightly volatile
Assets Non Current1.7 B1.9 B
Moderately Down
Decreasing
Stable
Current AssetsB1.4 B
Way Up
Decreasing
Slightly volatile
Total Assets4.1 B3.3 B
Fairly Up
Decreasing
Slightly volatile

HR Block Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between HR Block's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards HR Block in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find HR Block's degree of accounting gimmicks and manipulations.

About HR Block Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

850.72 Million

HR Block Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 837.11 Million

HR Block Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as HR Block. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues3.16 B3.09 B2.64 B3.41 B3.46 B3.55 B
Total Assets3.14 B3.3 B5.11 B3.65 B3.27 B4.07 B
Current Assets1.89 B1.99 B3.09 B1.7 B1.38 B2 B
Assets Non Current1.25 B1.31 B2.03 B1.95 B1.88 B1.71 B
Total Liabilities2.75 B2.76 B5.04 B3.3 B3.06 B3.52 B
Current Liabilities843.65 M923 M1.58 B1.16 B998.81 M1.42 B
Total Debt1.5 B1.49 B4 B1.94 B1.92 B1.92 B
Debt Current981 K1.03 M844.92 M206.39 M206.9 M205.51 M
Debt Non Current1.49 B1.49 B3.16 B1.73 B1.72 B1.69 B
Operating Income752.05 M615.79 M77.08 M769.63 M744.9 M751.49 M
Gross Margin44.9443.2335.1346.0445.6842.3

About HR Block Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze HR Block's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of HR Block using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of HR Block based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
HR Block, Inc., through its subsidiaries, provides assisted income tax return preparation and do-it-yourself tax return preparation services and products to the general public primarily in the United States, Canada, and Australia. HR Block, Inc. was founded in 1955 and is headquartered in Kansas City, Missouri. HR Block operates under Personal Services classification in the United States and is traded on New York Stock Exchange. It employs 3800 people.

HR Block Investors Sentiment

The influence of HR Block's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in HR Block. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to HR Block's public news can be used to forecast risks associated with investment in HR Block. The trend in average sentiment can be used to explain how an investor holding HR Block can time the market purely based on public headlines and social activities around HR Block. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
HR Block's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for HR Block's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average HR Block's news discussions. The higher the estimated score, the more favorable is the investor's outlook on HR Block.

HR Block Implied Volatility

    
  26.27  
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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards HR Block in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, HR Block's short interest history, or implied volatility extrapolated from HR Block options trading.

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Please check HR Block Piotroski F Score and HR Block Altman Z Score analysis. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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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
1.46
Market Capitalization
6.8 B
Quarterly Revenue Growth YOY
(0.07) 
Return On Assets
0.15
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.