BLOCK INC (SQ)
US8522341036 - Common Stock
Taking everything into account, SQ scores 4 out of 10 in our fundamental rating. SQ was compared to 101 industry peers in the Financial Services industry. SQ scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SQ shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year SQ was profitable.
SQ had a positive operating cash flow in the past year.
Of the past 5 years SQ 4 years were profitable.
Each year in the past 5 years SQ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SQ (1.40%) is comparable to the rest of the industry.
SQ's Return On Equity of 2.63% is on the low side compared to the rest of the industry. SQ is outperformed by 65.35% of its industry peers.
The Return On Invested Capital of SQ (2.31%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 2.63% | ||
| ROIC | 2.31% |
ROA(3y)-0.2%
ROA(5y)1.96%
ROE(3y)0.66%
ROE(5y)6.36%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 2.18%, SQ is not doing good in the industry: 61.39% of the companies in the same industry are doing better.
SQ's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.95%, SQ is doing worse than 65.35% of the companies in the same industry.
SQ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.46%, SQ is in line with its industry, outperforming 52.48% of the companies in the same industry.
In the last couple of years the Gross Margin of SQ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.95% | ||
| PM (TTM) | 2.18% | ||
| GM | 34.46% |
OM growth 3Y1.34%
OM growth 5Y2.41%
PM growth 3Y-72.91%
PM growth 5YN/A
GM growth 3Y5.97%
GM growth 5Y-2.83%
2. Health
2.1 Basic Checks
SQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SQ has been increased compared to 1 year ago.
SQ has more shares outstanding than it did 5 years ago.
SQ has a better debt/assets ratio than last year.
2.2 Solvency
SQ has an Altman-Z score of 2.42. This is not the best score and indicates that SQ is in the grey zone with still only limited risk for bankruptcy at the moment.
SQ has a better Altman-Z score (2.42) than 80.20% of its industry peers.
SQ has a debt to FCF ratio of 28.41. This is a negative value and a sign of low solvency as SQ would need 28.41 years to pay back of all of its debts.
With a Debt to FCF ratio value of 28.41, SQ is not doing good in the industry: 60.40% of the companies in the same industry are doing better.
SQ has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
SQ's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. SQ outperforms 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 28.41 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.27
WACC8.51%
2.3 Liquidity
SQ has a Current Ratio of 1.64. This is a normal value and indicates that SQ is financially healthy and should not expect problems in meeting its short term obligations.
SQ has a better Current ratio (1.64) than 67.33% of its industry peers.
SQ has a Quick Ratio of 1.63. This is a normal value and indicates that SQ is financially healthy and should not expect problems in meeting its short term obligations.
SQ's Quick ratio of 1.63 is fine compared to the rest of the industry. SQ outperforms 68.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.61% over the past year.
Measured over the past years, SQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.23% on average per year.
The Revenue has grown by 23.28% in the past year. This is a very strong growth!
Measured over the past years, SQ shows a very strong growth in Revenue. The Revenue has been growing by 46.05% on average per year.
EPS 1Y (TTM)83.61%
EPS 3Y29.72%
EPS 5Y31.23%
EPS Q2Q%112.5%
Revenue 1Y (TTM)23.28%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%19.38%
3.2 Future
Based on estimates for the next years, SQ will show a very strong growth in Earnings Per Share. The EPS will grow by 32.32% on average per year.
Based on estimates for the next years, SQ will show a quite strong growth in Revenue. The Revenue will grow by 12.41% on average per year.
EPS Next Y99.95%
EPS Next 2Y60.17%
EPS Next 3Y48.82%
EPS Next 5Y32.32%
Revenue Next Year15.05%
Revenue Next 2Y13.3%
Revenue Next 3Y12%
Revenue Next 5Y12.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.61, which means the current valuation is very expensive for SQ.
Compared to the rest of the industry, the Price/Earnings ratio of SQ indicates a slightly more expensive valuation: SQ is more expensive than 60.40% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.05. SQ is around the same levels.
With a Price/Forward Earnings ratio of 13.95, SQ is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SQ is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.07, SQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SQ is valued a bit more expensive than the industry average as 60.40% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, SQ is valued a bit more expensive than the industry average as 67.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 272.49 | ||
| EV/EBITDA | 34.3 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SQ's earnings are expected to grow with 48.82% in the coming years.
PEG (NY)0.29
PEG (5Y)0.92
EPS Next 2Y60.17%
EPS Next 3Y48.82%
5. Dividend
5.1 Amount
SQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BLOCK INC
NYSE:SQ (5/31/2024, 7:07:03 PM)
After market: 64.28 +0.2 (+0.31%)64.08
-0.94 (-1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap39.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.61 | ||
| Fwd PE | 13.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.29
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 2.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.95% | ||
| PM (TTM) | 2.18% | ||
| GM | 34.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)83.61%
EPS 3Y29.72%
EPS 5Y
EPS Q2Q%
EPS Next Y99.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.28%
Revenue growth 3Y32.14%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y