• 繁

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    A Look at H&R Block’s (HRB) Valuation After Earnings Beat and Upgraded 2026 Outlook

    Simply Wall St·12/20/2025 05:28:09
    語音播報

    H&R Block (HRB) just turned in a quarter that topped revenue and EBITDA expectations, then followed it up with the biggest full year guidance raise in its peer group. This signals management’s confidence heading into fiscal 2026.

    See our latest analysis for H&R Block.

    The upbeat outlook lands after a choppy stretch for the stock, with a 90 day share price return of minus 13.05 percent and a year to date share price return of minus 17.67 percent, yet the five year total shareholder return of 233.62 percent suggests longer term momentum remains firmly positive.

    If this earnings pop has you thinking about what else could compound like that over time, it might be worth scouting fast growing stocks with high insider ownership as your next set of ideas.

    With shares still trading at a sizable discount to analyst targets despite robust guidance, the key question now is simple: Is H&R Block quietly undervalued, or is the market already pricing in its next leg of growth?

    Most Popular Narrative: 20.5% Undervalued

    Compared to the last close of $43.71, the most followed narrative implies a noticeably higher fair value for H&R Block, framing today’s weakness as a potential opportunity rather than a warning.

    The company's strategic focus and multi year success in expanding small business bookkeeping, payroll, and SaaS offerings including record small business revenue and strong results at Wave addresses a secular rise in gig economy and self employed taxpayers, supporting revenue diversification and incremental growth in both top line and net margins.

    Read the complete narrative.

    Want to see what kind of growth and margins could justify that gap, and how long it might take to close it? The full narrative lays out the precise revenue runway, earnings path, and profit multiple that underpin this higher valuation case, and reveals how a modest growth profile can still support a meaningfully richer price tag.

    Result: Fair Value of $55 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, persistent market share losses and intensifying digital competition could blunt that upside, capping revenue growth and keeping valuation multiples from re-rating meaningfully.

    Find out about the key risks to this H&R Block narrative.

    Build Your Own H&R Block Narrative

    If you are not fully aligned with this view, or simply want to dig into the numbers yourself, you can build a custom take in just a few minutes, Do it your way.

    A great starting point for your H&R Block research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    Before you move on, lock in your next set of opportunities with focused screens that surface quality, momentum, and yield so your watchlist constantly upgrades itself.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.