Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, tax prep specialist H&R Block
With that in mind, let's take a closer look at H&R Block's business and see what CAPS investors are saying about the stock right now.
H&R Block facts
| Headquarters (founded) | Kansas City, Mo. (1946) |
| Market Cap | $4.4 billion |
| Industry | Specialized consumer services |
| Trailing-12-Month Revenue | $2.8 billion |
| Management | CFO William Cobb (since May 2011) CFO Gregory Macfarlane (since June 2012) |
| Return on Equity (average, past 3 years) | 28% |
| Cash/Debt | $2.0 billion / $1.1 billion |
| Dividend Yield | 5% |
| Competitors |
Intuit Jackson Hewitt Tax Service JTH Holding |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 33% of the 558 members who have rated H&R Block believe the stock will underperform the S&P 500 going forward.
A few months ago, one of those Fools, Merlinssecret, succinctly summed up the bear case for our community:
[H&R Block] is a stagnant slow growth [brick-and-mortar] company locked in mortal combat with web based tax preparers such as [TurboTax]. ... While they have a good dividend and solid cash flow[,] management has historically proven inept at finding [profitable] ways to use this capital. I don't see this stock falling much from its current level but neither do I see it outperforming the market anytime soon.
If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
