MeritValue

H&R BLOCK INC

HRBdata completeness 100%18 fiscal years on file
The thesis, from the filings

H&R BLOCK INC earns about 30% on invested capital, far above its ~9% cost of capital, and has bought back 27% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $44.05 and $75.24 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$3.41B1$3.46B2$3.47B3$3.61B3$3.76B3
Net income$583.8M4$553.7M5$553.7M6$595.3M6$605.8M6
Operating cash flow$625.9M7$808.5M8$821.8M9$720.9M9$680.9M9
Capital expenditure$52.8M10$62M11$69.7M12$63.7M12$82M12
Free cash flow (derived)$573.1M7$746.6M8$752.1M9$657.2M9$598.8M9
Total debt$2.98B13$2.97B14$2.98B15$2.98B16$2.99B16
Cash & equivalents$934.3M17$885M18$987M19$1.05B20$983.3M20
Diluted shares188.8M171.4M157.2M143.9M137.3M

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
$6.47
your share of equity
Profit it earned you last year
$44.11
Free cash flow it threw off
$43.6
Debt you’d be carrying
$217.45

10 shares is a claim on $6.47 of net worth that earned you $44.11 and generated $43.6 of cash last year, against $217.45 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
30% avg · 5y
FY21 27%FY22 28%FY23 31%FY24 33%FY25 32%

It earned about 30% 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
−27% shares · 5y

Share count is down 27% 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 v0.1.0

The 3 estimate methods that apply put fair value between $44.05 and $75.24 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
$75.24
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth4.7%
  • fcfBase$657.2M
DCF · Growth Exit 5Y
$69.13
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth4.7%
  • fcfBase$657.2M
Earnings Power Value
$44.05
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$583.8M
  • growthAssumed0.0%
Graham Number
$8
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 years4.7%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $69.13
The three cases
Bear0.0%$53.78
Base4.7%$69.13
Bull9.7%$88.7

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

Default growth 4.7%= 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 2021-04-30 · accession 0001838862-23-000027 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0001838862-24-000030 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0001605297-25-000016 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-04-30 · accession 0001838862-23-000027 (NetIncomeLoss)
  5. 10-K · period ending 2022-06-30 · accession 0001838862-24-000030 (NetIncomeLoss)
  6. 10-K · period ending 2023-06-30 · accession 0001605297-25-000016 (NetIncomeLoss)
  7. 10-K · period ending 2021-04-30 · accession 0001838862-23-000027 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-06-30 · accession 0001838862-24-000030 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-06-30 · accession 0001605297-25-000016 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-04-30 · accession 0001838862-23-000027 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-06-30 · accession 0001838862-24-000030 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-06-30 · accession 0001605297-25-000016 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-04-30 · accession 0001838862-22-000028 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-06-30 · accession 0001838862-23-000027 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-06-30 · accession 0001838862-24-000030 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-06-30 · accession 0001605297-25-000016 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-04-30 · accession 0001838862-22-000028 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-06-30 · accession 0001838862-23-000027 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-06-30 · accession 0001838862-24-000030 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-06-30 · accession 0001605297-25-000016 (CashAndCashEquivalentsAtCarryingValue)