H&R Block (NYSE:HRB) (0.7%) (HRB - $29.30 - NYSE) is the largest assisted tax preparation business in the U.S., conducting operations through company owned and franchised locations. The company is also a leading provider of "do-it-yourself" (DIY) tax preparation software and has begun offering customers a variety of hybrid DIY/assisted options. The company has been improving service and investing in digital to meet the slow but steadily increasing customer preference for DIY, steps that were accelerated when Jeffrey Jones became CEO in 2017. As part of this transformation, in June 2019 H&R Block purchased Wave Financial, a fast-growing, cloud-based bookkeeping service for small businesses. H&R Block should be able to accelerate its topline while integrating Wave and cross-selling tax services to an underpenetrated market. In the meantime, the company should be able to improve tax prep market share and margins while continuing to generate significant cash flow for shareholders.
From Mario Gabelli (Trades, Portfolio)'s second-quarter 2019 Value 25 Fund commentary.
This article first appeared on GuruFocus.
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