H&R BlockFRA:HRB -0.69%78 Pretax Margin % is 42.39% as of Mar. 2026, which is 112% above its 10-year median of 20.04. GuruFocus rates FRA:HRB with a GF Score™ of 78/100 and a GF Value™ of €52.67 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 97 Personal Services companies, H&R Block ranks better than 94.85% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. H&R Block's Pre-Tax Income for the
three
months ended in Mar. 2026 was €879 Mil. H&R Block's Revenue for the
three
months ended in Mar. 2026 was €2,074 Mil. Therefore, H&R Block's pretax margin for the quarter that ended in Mar. 2026 was 42.39%.
The historical rank and industry rank for H&R Block's Pretax Margin % or its related term are showing as below:
FRA:HRB'
s Pretax Margin % Range Over the Past 10 Years
Min: -0.13 Med: 20.04 Max: 21.7
Current: 21.7
FRA:HRB's Pretax Margin % is ranked better than 94.85% of 97
companies
in the Personal Services industry
Industry Median: 5.59
vs FRA:HRB: 21.70
H&R Block (FRA:HRB) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
H&R Block Pretax Margin % Related Terms
H&R Block Pretax Margin % Historical Data
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The historical data trend for H&R Block's Pretax 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.
FRA:HRB vs FTDR, ANDG, BFAM: Pretax Margin % Comparison
For the Personal Services subindustry, H&R Block's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, H&R Block's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where H&R Block's Pretax 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.
H&R Block (FRA:HRB) has a Pretax Margin % of 42.39% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on H&R Block and its competitors. This is 112% above median its historical median of 20.04. According to the industry distribution chart, H&R Block ranks #5 out of 97 companies in the Personal Services industry, placing it in the top 5.2%.
Is H&R Block's Pretax Margin % too high?
H&R Block's current Pretax Margin % of 42.39% is 112% above median its 10-year median of 20.04. The Personal Services industry median Pretax Margin % is 5.59. H&R Block's value of 42.39% is 658.3% above this industry median. Based on the distribution chart, H&R Block ranks #5 out of 97 companies in the Personal Services industry, which is in the top quartile — a strong position relative to peers. Overall, H&R Block has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does H&R Block's Pretax Margin % compare to FTDR and ANDG?
According to the Personal Services industry distribution chart, H&R Block ranks #5 out of 97 companies for Pretax Margin %. This places H&R Block in the top 5% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.59. H&R Block's value of 42.39% is 658.3% above this benchmark. While the company's 10-year median is 20.04 vs. the industry median of 5.59, 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 Pretax Margin % for a Personal Services company?
The median Pretax Margin % among Personal Services companies is 5.59, based on 97 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H&R Block's current Pretax Margin % of 42.39% is 658.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on H&R Block and its competitors. For the Personal Services industry, the median Pretax Margin % is 5.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H&R Block's current Pretax Margin % is 42.39%, which is 112% above median its own 10-year median of 20.04. 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 (FRA:HRB) is currently considered Significantly Undervalued. The stock's GF Value™ is €52.67, compared to a current price of €33.02 — trading 37.3% below its estimated fair value. The current Pretax Margin % is 42.39%, which is 112% above median its 10-year median of 20.04 and 658.3% above the Personal Services industry median of 5.59. H&R Block's overall GF Score™ is 78/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For H&R Block (FRA:HRB), the current Pretax Margin % is 42.39% 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 (FRA:HRB) Overvalued in 2026?
Based on GuruFocus' analysis, H&R Block stock appears to be undervalued.
The current stock price of €33.02 is trading 37.3% below its estimated GF Value™ of €52.67.
GuruFocus considers H&R Block to be Significantly Undervalued.
Key valuation signals for FRA:HRB:
Pretax Margin %: 42.39% (112% above median its 10-year median of 20.04)
GF Value™: €52.67 vs. price of €33.02 (37.3% below fair value)
Industry Position: 658.3% above the Personal Services median (#5 of 97)
No single metric tells the full story. See the FRA:HRB 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.
78GF Score
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