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$87.12 - $196.92$126.49
Multi-Stage$306.89 - $338.33$322.30
Blended Fair Value$224.39
Current Price$50.57
Upside343.73%
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 Rate4.20%4.20%4.20%
Growth Rate0.02%1.02%2.02%
Fair Value$87.12$126.49$196.92
Upside / Downside72.28%150.12%289.40%

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 Rate4.20%4.20%4.20%
Growth Rate0.02%1.02%2.02%
Year 1 PV (M)261.62264.24266.86
Year 2 PV (M)315.32321.66328.06
Year 3 PV (M)364.29375.32386.58
Year 4 PV (M)408.81425.41442.50
Year 5 PV (M)449.18472.09495.92
PV of Terminal Value (M)39,480.9541,494.4243,589.22
Equity Value (M)41,280.1743,353.1445,509.13
Shares Outstanding (M)134.51134.51134.51
Fair Value$306.89$322.30$338.33
Upside / Downside506.86%537.34%569.03%

High-Yield Dividend Screener

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