BLOCK INC (SQ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SQ - US8522341036 - Common Stock
86.96 USD
+0.58 (+0.67%)
87.17 USD
+0.21 (+0.24%)
Taking everything into account, SQ scores 5 out of 10 in our fundamental rating. SQ was compared to 98 industry peers in the Financial Services industry. SQ has only an average score on both its financial health and profitability. SQ is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- SQ had positive earnings in the past year.
- In the past year SQ had a positive cash flow from operations.
- Of the past 5 years SQ 4 years were profitable.
- SQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.11%, SQ is in the better half of the industry, outperforming 65.69% of the companies in the same industry.
- SQ has a Return On Equity (5.67%) which is comparable to the rest of the industry.
- SQ has a Return On Invested Capital of 4.42%. This is in the better half of the industry: SQ outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROIC | 4.42% |
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
- SQ has a Profit Margin of 4.73%. This is in the lower half of the industry: SQ underperforms 60.78% of its industry peers.
- SQ's Profit Margin has declined in the last couple of years.
- The Operating Margin of SQ (6.18%) is worse than 61.76% of its industry peers.
- In the last couple of years the Operating Margin of SQ has grown nicely.
- SQ has a Gross Margin of 36.06%. This is comparable to the rest of the industry: SQ outperforms 53.92% of its industry peers.
- SQ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.18% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.06% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SQ is destroying value.
- Compared to 1 year ago, SQ has more shares outstanding
- SQ has a worse debt/assets ratio than last year.
2.2 Solvency
- SQ has an Altman-Z score of 3.13. This indicates that SQ is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of SQ (3.13) is better than 84.31% of its industry peers.
- SQ has a debt to FCF ratio of 9.86. This is a negative value and a sign of low solvency as SQ would need 9.86 years to pay back of all of its debts.
- SQ has a Debt to FCF ratio of 9.86. This is comparable to the rest of the industry: SQ outperforms 50.98% of its industry peers.
- A Debt/Equity ratio of 0.30 indicates that SQ is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.30, SQ is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.51
WACC8.63%
2.3 Liquidity
- SQ has a Current Ratio of 2.07. This indicates that SQ is financially healthy and has no problem in meeting its short term obligations.
- SQ's Current ratio of 2.07 is fine compared to the rest of the industry. SQ outperforms 75.49% of its industry peers.
- SQ has a Quick Ratio of 2.06. This indicates that SQ is financially healthy and has no problem in meeting its short term obligations.
- SQ has a better Quick ratio (2.06) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 99.36% over the past year.
- SQ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.23% yearly.
- The Revenue has grown by 14.75% in the past year. This is quite good.
- SQ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 46.05% yearly.
EPS 1Y (TTM)99.36%
EPS 3Y29.72%
EPS 5Y31.23%
EPS Q2Q%60%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%6.38%
3.2 Future
- SQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.31% yearly.
- The Revenue is expected to grow by 11.81% on average over the next years. This is quite good.
EPS Next Y102.87%
EPS Next 2Y61.85%
EPS Next 3Y47.31%
EPS Next 5Y34.31%
Revenue Next Year11.42%
Revenue Next 2Y11.39%
Revenue Next 3Y11.45%
Revenue Next 5Y11.81%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 27.96, which means the current valuation is very expensive for SQ.
- Based on the Price/Earnings ratio, SQ is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
- SQ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.54, the valuation of SQ can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SQ is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. SQ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 18.54 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SQ.
- SQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.17 | ||
| EV/EBITDA | 27.68 |
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 47.31% in the coming years.
PEG (NY)0.27
PEG (5Y)0.9
EPS Next 2Y61.85%
EPS Next 3Y47.31%
5. Dividend
5.1 Amount
- SQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.96
+0.58 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-20 2025-02-20/amc
Inst OwnersN/A
Inst Owner Change0.03%
Ins OwnersN/A
Ins Owner Change0%
Market Cap53.90B
Revenue(TTM)23.86B
Net Income(TTM)1.13B
Analysts80.36
Price Target100.49 (15.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.63%
Min EPS beat(2)-2.11%
Max EPS beat(2)7.38%
EPS beat(4)2
Avg EPS beat(4)-1.39%
Min EPS beat(4)-25.8%
Max EPS beat(4)14.99%
EPS beat(8)5
Avg EPS beat(8)-0.13%
EPS beat(12)8
Avg EPS beat(12)6.56%
EPS beat(16)11
Avg EPS beat(16)22.13%
Revenue beat(2)0
Avg Revenue beat(2)-5.9%
Min Revenue beat(2)-7.02%
Max Revenue beat(2)-4.77%
Revenue beat(4)0
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-7.02%
Max Revenue beat(4)-0.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)3
Avg Revenue beat(12)-1.54%
Revenue beat(16)4
Avg Revenue beat(16)-0.05%
PT rev (1m)6.1%
PT rev (3m)13.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.96 | ||
| Fwd PE | 18.54 | ||
| P/S | 2.26 | ||
| P/FCF | 75.17 | ||
| P/OCF | 60.18 | ||
| P/B | 2.71 | ||
| P/tB | 8.6 | ||
| EV/EBITDA | 27.68 |
EPS(TTM)3.11
EY3.58%
EPS(NY)4.69
Fwd EY5.39%
FCF(TTM)1.16
FCFY1.33%
OCF(TTM)1.45
OCFY1.66%
SpS38.5
BVpS32.14
TBVpS10.11
PEG (NY)0.27
PEG (5Y)0.9
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROCE | 5.6% | ||
| ROIC | 4.42% | ||
| ROICexc | 6.65% | ||
| ROICexgc | 30.21% | ||
| OM | 6.18% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.06% | ||
| FCFM | 3% |
ROA(3y)-0.2%
ROA(5y)1.96%
ROE(3y)0.66%
ROE(5y)6.36%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-0.41%
ROICexgc growth 5Y5.31%
ROICexc growth 3Y-32.39%
ROICexc growth 5Y-14.18%
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%
F-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 45.51% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 10.59 | ||
| Cash Conversion | 47.98% | ||
| Profit Quality | 63.5% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 3.13 |
F-Score7
WACC8.63%
ROIC/WACC0.51
Cap/Depr(3y)104.3%
Cap/Depr(5y)111.99%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)99.36%
EPS 3Y29.72%
EPS 5Y31.23%
EPS Q2Q%60%
EPS Next Y102.87%
EPS Next 2Y61.85%
EPS Next 3Y47.31%
EPS Next 5Y34.31%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%6.38%
Revenue Next Year11.42%
Revenue Next 2Y11.39%
Revenue Next 3Y11.45%
Revenue Next 5Y11.81%
EBIT growth 1Y302.85%
EBIT growth 3Y33.91%
EBIT growth 5Y49.57%
EBIT Next Year1780.32%
EBIT Next 3Y204.1%
EBIT Next 5Y109.97%
FCF growth 1Y329.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y175.67%
OCF growth 3Y-35.8%
OCF growth 5Y-19.31%
BLOCK INC / SQ FAQ
What is the ChartMill fundamental rating of BLOCK INC (SQ) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SQ.
Can you provide the valuation status for BLOCK INC?
ChartMill assigns a valuation rating of 3 / 10 to BLOCK INC (SQ). This can be considered as Overvalued.
What is the profitability of SQ stock?
BLOCK INC (SQ) has a profitability rating of 4 / 10.
What is the valuation of BLOCK INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BLOCK INC (SQ) is 27.96 and the Price/Book (PB) ratio is 2.71.