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 97 industry peers in the Financial Services industry. SQ has an average financial health and profitability rating. SQ is not overvalued while it is showing excellent growth. This is an interesting 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.
- SQ had positive earnings in 4 of the past 5 years.
- In the past 5 years SQ always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of SQ (3.11%) is better than 65.69% of its industry peers.
- The Return On Equity of SQ (5.67%) 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's Profit Margin of 4.73% is on the low side compared to the rest of the industry. SQ is outperformed by 60.78% of its industry peers.
- In the last couple of years the Profit Margin of SQ has declined.
- With a Operating Margin value of 6.18%, SQ is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
- SQ's Operating Margin has improved in the last couple of years.
- 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.
- In the last couple of years the Gross Margin of SQ has declined.
| 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
- SQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, SQ has more shares outstanding
- The debt/assets ratio for SQ is higher compared to a year ago.
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.
- With an excellent Altman-Z score value of 3.13, SQ belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
- 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 (9.86) which is comparable to the rest of the industry.
- 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 has a better Current ratio (2.07) than 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.
- With a decent Quick ratio value of 2.06, SQ is doing good in the industry, outperforming 76.47% of the companies in the same industry.
| 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.
- 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.
- SQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.75%.
- 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
- The Earnings Per Share is expected to grow by 34.31% on average over the next years. This is a very strong growth
- 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
- SQ is valuated quite expensively with a Price/Earnings ratio of 27.96.
- Compared to the rest of the industry, the Price/Earnings ratio of SQ indicates a slightly more expensive valuation: SQ is more expensive than 60.78% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.94. SQ is around the same levels.
- SQ is valuated rather expensively with a Price/Forward Earnings ratio of 18.54.
- The rest of the industry has a similar Price/Forward Earnings ratio as SQ.
- When comparing the Price/Forward Earnings ratio of SQ to the average of the S&P500 Index (23.94), we can say SQ is valued slightly cheaper.
| 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 is on the same level as 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
- No dividends for SQ!.
| 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 Change0.04%
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.