6/26/2023 0 Comments H and r block key codes 2016Meanwhile, our 6.94% yield fans have one simple question. So, our growth thesis needs to account for bearish sentiment. Consider this chart of the short interest over a ten-year time frame. From January 2016 to August 2019, the short interest went from nearly 3% to 30% of the float. It's two-fold, both HRB's lag in the run up to March 2020 and the pronounced lack of recovery in the share price. HRB investors were cut in half while the S&P doubled and Intuit quadrupled. The level of market hate for HRB shown in this chart is staggering. Against this backdrop, it's intriguing to see the stock price chart against both the S&P 500 and tax preparation titan Intuit ( INTU). Here are the prior 5 years per the 10k.įrom 2016 to 2019, we see a remarkably stable revenue ($3B) and income ($400-500M). Instead, the vast majority of revenue occurs during filing season which aligns to HRB's Q4. While they do offer products & services beyond seasonal tax preparation, these lines of business account for less than 10% of revenue, which I will cover in the next session. HRB is best understood as an annual stock. HRB is willing to pay you, the investor, 6.94% to wait. While there are strategic concerns around revenue growth & legal risks, this has generated a discount excessive to the risks that should resolve in the near to medium term. An exceptional yield tainted by concerns around safety & growth.Īs I'll show through this article, standard models aren't handling HRB's pandemic measures such as drawing on their credit as well as the pandemic-related revenue shift. HRB's dividend page on Seeking Alpha is a study in contrasts. Consider your favorite neighborhood tax preparer, H&R Block ( NYSE: HRB). Stocks so weird that surely someone has to be wrong.
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