Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

H&R Block, Inc. (0HOB.L)

Company Dividend Discount ModelIndustry: Personal Products & ServicesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$89.00 - $205.22$130.10
Multi-Stage$331.49 - $365.49$348.15
Blended Fair Value$239.13
Current Price$50.57
Upside372.86%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.75%-1.08%1.471.341.321.391.451.521.531.491.391.50
YoY Growth--9.76%1.04%-4.59%-4.40%-4.78%-0.29%2.49%7.14%-7.23%-8.31%
Dividend Yield--2.90%2.10%3.07%3.26%5.80%10.50%5.52%5.92%4.56%6.27%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)612.53
(-) Cash Dividends Paid (M)202.89
(=) Cash Retained (M)409.65
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)122.5176.5745.94
Cash Retained (M)409.65409.65409.65
(-) Cash Required (M)-122.51-76.57-45.94
(=) Excess Retained (M)287.14333.08363.71
(/) Shares Outstanding (M)134.51134.51134.51
(=) Excess Retained per Share2.132.482.70
LTM Dividend per Share1.511.511.51
(+) Excess Retained per Share2.132.482.70
(=) Adjusted Dividend3.643.984.21
WACC / Discount Rate4.12%4.12%4.12%
Growth Rate0.02%1.02%2.02%
Fair Value$89.00$130.10$205.22
Upside / Downside76.00%157.26%305.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)612.53618.79625.11631.50637.96644.48663.81
Payout Ratio33.12%44.50%55.87%67.25%78.62%90.00%92.50%
Projected Dividends (M)202.89275.35349.27424.68501.59580.03614.03

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.12%4.12%4.12%
Growth Rate0.02%1.02%2.02%
Year 1 PV (M)261.85264.46267.08
Year 2 PV (M)315.86322.20328.61
Year 3 PV (M)365.21376.28387.56
Year 4 PV (M)410.20426.85444.01
Year 5 PV (M)451.09474.09498.02
PV of Terminal Value (M)42,784.8544,966.8147,236.91
Equity Value (M)44,589.0546,830.7049,162.20
Shares Outstanding (M)134.51134.51134.51
Fair Value$331.49$348.15$365.49
Upside / Downside555.50%588.46%622.73%

High-Yield Dividend Screener

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