H&R BlockLTS:0HOB +0.91%85 Gross Margin % is 56.97% as of Mar. 2026, which is 27% above its 10-year median of 44.72. GuruFocus rates LTS:0HOB with a GF Score™ of 85/100 and a GF Value™ of $63.17 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 94 Personal Services companies, H&R Block ranks better than 51.06% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. H&R Block's Gross Profit for the
three
months ended in Mar. 2026 was $1,366 Mil. H&R Block's Revenue for the
three
months ended in Mar. 2026 was $2,398 Mil. Therefore, H&R Block's Gross Margin % for the quarter that ended in Mar. 2026 was 56.97%.
The historical rank and industry rank for H&R Block's Gross Margin % or its related term are showing as below:
LTS:0HOB'
s Gross Margin % Range Over the Past 10 Years
Min: 35.13 Med: 44.72 Max: 46.04
Current: 44.3
During the past 13 years, the highestGross Margin % of H&R Block was 46.04%. The lowest was 35.13%. And the median was 44.72%.
LTS:0HOB's Gross Margin % is ranked better than 51.06% of 94
companies
in the Personal Services industry
Industry Median: 41.795
vs LTS:0HOB: 44.30
H&R Block had a gross margin of 56.97% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for H&R Block was 3.10% per year.
H&R Block (LTS:0HOB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
H&R Block had a gross margin of 56.97% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
H&R Block Gross Margin % Related Terms
H&R Block Gross Margin % Historical Data
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The historical data trend for H&R Block's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0HOB vs FTDR, ANDG, BFAM: Gross Margin % Comparison
For the Personal Services subindustry, H&R Block's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
H&R Block Gross Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, H&R Block's Gross Margin % distribution charts can be found below:
* The bar in red indicates where H&R Block's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
H&R Block (LTS:0HOB) has a Gross Margin % of 56.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on H&R Block and its competitors. This is 27% above median its historical median of 44.72. Over the past decade, H&R Block's Gross Margin % has ranged from 35.13 to 46.04. According to the industry distribution chart, H&R Block ranks #46 out of 94 companies in the Personal Services industry, placing it in the top 48.9%.
Is H&R Block's Gross Margin % too high?
H&R Block's current Gross Margin % of 56.97% is 27% above median its 10-year median of 44.72. Over the past 10 years, this metric has ranged from a low of 35.13 to a high of 46.04. The Personal Services industry median Gross Margin % is 41.80. H&R Block's value of 56.97% is 36.3% above this industry median. Based on the distribution chart, H&R Block ranks #46 out of 94 companies in the Personal Services industry, which is above the industry midpoint. Overall, H&R Block has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does H&R Block's Gross Margin % compare to FTDR and ANDG?
According to the Personal Services industry distribution chart, H&R Block ranks #46 out of 94 companies for Gross Margin %. This puts H&R Block in the upper half of its industry. The industry median Gross Margin % is 41.80. H&R Block's value of 56.97% is 36.3% above this benchmark. Historically, H&R Block's own Gross Margin % has ranged from 35.13 to 46.04 over the past decade. While the company's 10-year median is 44.72 vs. the industry median of 41.80, H&R Block has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Personal Services company?
The median Gross Margin % among Personal Services companies is 41.80, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H&R Block's current Gross Margin % of 56.97% is 36.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on H&R Block and its competitors. For the Personal Services industry, the median Gross Margin % is 41.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H&R Block's current Gross Margin % is 56.97%, which is 27% above median its own 10-year median of 44.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H&R Block stock overvalued right now?
Based on GuruFocus' analysis, H&R Block (LTS:0HOB) is currently considered Significantly Undervalued. The stock's GF Value™ is $63.17, compared to a current price of $38.33 — trading 39.3% below its estimated fair value. The current Gross Margin % is 56.97%, which is 27% above median its 10-year median of 44.72 and 36.3% above the Personal Services industry median of 41.80. H&R Block's overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For H&R Block (LTS:0HOB), the current Gross Margin % is 56.97% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is H&R Block (LTS:0HOB) Overvalued in 2026?
Based on GuruFocus' analysis, H&R Block stock appears to be undervalued.
The current stock price of $38.33 is trading 39.3% below its estimated GF Value™ of $63.17.
GuruFocus considers H&R Block to be Significantly Undervalued.
Key valuation signals for LTS:0HOB:
Gross Margin %: 56.97% (27% above median its 10-year median of 44.72)
GF Value™: $63.17 vs. price of $38.33 (39.3% below fair value)
Industry Position: 36.3% above the Personal Services median (#46 of 94)
No single metric tells the full story. See the LTS:0HOB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H&R Block Inc provides income tax return preparation services, digital do-it-yourself tax solutions, and other services related to income tax preparation to the general public in the United States, Canada, and Australia. The company mainly prepares tax returns for customers within the United States through its company-owned offices, franchise locations, and online tax software. The vast majority of H&R Block's offices are located in the U.S. The company derives the majority of its total revenue from the U.S. assisted tax preparation fees. Revenue from franchise and product royalties and digital do-it-yourself tax solutions is also relatively.
85GF Score
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