MeritValue

H&R BLOCK INC

HRBdata completeness 100%19 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'realEstateImpairment'

The thesis, from the filings

H&R BLOCK INC earns about 32% on invested capital, far above its ~9% cost of capital, and has bought back 25% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $47.24 and $55.77 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$3.46B1$3.47B2$3.61B3$3.76B3$3.95B3
Net income$553.7M4$553.7M5$595.3M6$605.8M6$733.6M6
Operating cash flow$808.5M7$821.8M8$720.9M9$680.9M9$838.7M9
Capital expenditure$62M10$69.7M11$63.7M12$82M12$82.6M12
Free cash flow (derived)$746.6M7$752.1M8$657.2M9$598.8M9$756.1M9
Total debt$2.97B13$2.98B14$2.98B15$2.99B16$2.98B16
Cash & equivalents$885M17$987M18$1.05B19$983.3M20$958.7M20
Diluted shares171.4M157.2M143.9M137.3M128.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$9.12
your share of equity
Profit it earned you last year
$56.93
Free cash flow it threw off
$58.67
Debt you’d be carrying
$231.48

10 shares is a claim on $9.12 of net worth that earned you $56.93 and generated $58.67 of cash last year, against $231.48 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
32% avg · 5y
FY22 28%FY23 31%FY24 33%FY25 32%FY26 38%

It earned about 32% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−25% shares · 5y

Share count is down 25% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $47.24 and $55.77 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$50.44
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$657.2M
DCF · Growth Exit 5Y
$55.77
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$657.2M
Earnings Power Value
$47.24
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$595.3M
  • growthAssumed0.0%
Graham Number
$10.78
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)9.06%
Terminal growth2.5%
At your growth, a share is worth $55.77
The three cases
Bear0.0%$55.77
Base0.0%$55.77
Bull5.0%$73.03

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0001838862-24-000030 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0001605297-25-000016 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0000012659-26-000026 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0001838862-24-000030 (NetIncomeLoss)
  5. 10-K · period ending 2023-06-30 · accession 0001605297-25-000016 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-30 · accession 0000012659-26-000026 (NetIncomeLoss)
  7. 10-K · period ending 2022-06-30 · accession 0001838862-24-000030 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-06-30 · accession 0001605297-25-000016 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-06-30 · accession 0000012659-26-000026 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0001838862-24-000030 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-06-30 · accession 0001605297-25-000016 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-06-30 · accession 0000012659-26-000026 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-06-30 · accession 0001838862-23-000027 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-06-30 · accession 0001838862-24-000030 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-06-30 · accession 0001605297-25-000016 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2025-06-30 · accession 0000012659-26-000026 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-06-30 · accession 0001838862-23-000027 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0001838862-24-000030 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-06-30 · accession 0001605297-25-000016 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-06-30 · accession 0000012659-26-000026 (CashAndCashEquivalentsAtCarryingValue)