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 99 industry peers in the Financial Services industry. SQ has an average financial health and profitability rating. 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.
SQ had a positive operating cash flow in the past year.
SQ had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SQ had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.11%, SQ is doing good in the industry, outperforming 65.69% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.67%, SQ is in line with its industry, outperforming 43.14% of the companies in the same industry.
SQ's Return On Invested Capital of 4.42% is fine compared to the rest 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
With a Profit Margin value of 4.73%, SQ is not doing good in the industry: 60.78% 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 6.18%, SQ is doing worse than 61.76% 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 36.06%, SQ is in line with its industry, outperforming 53.92% of the companies in the same industry.
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.
The number of shares outstanding for SQ has been increased compared to 1 year ago.
The number of shares outstanding for SQ has been increased compared to 5 years ago.
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.
With a Debt to FCF ratio value of 9.86, SQ perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
SQ has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
SQ has a better Debt to Equity ratio (0.30) than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.51
WACC8.63%
2.3 Liquidity
A Current Ratio of 2.07 indicates that SQ has no problem at all paying its short term obligations.
SQ has a Current ratio of 2.07. This is in the better half 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.
The Quick ratio of SQ (2.06) is better than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
SQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 99.36%, which is quite impressive.
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.
Looking at the last year, SQ shows a quite strong growth in Revenue. The Revenue has grown by 14.75% in the last year.
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
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
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.
SQ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
SQ is valuated rather expensively with a Price/Forward Earnings ratio of 18.54.
SQ's Price/Forward Earnings is on the same level as the industry average.
SQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQ is on the same level as its industry peers.
| 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)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change20.74%
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.
What is the valuation status of BLOCK INC (SQ) stock?
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.
Can you provide the expected EPS growth for SQ stock?
The Earnings per Share (EPS) of BLOCK INC (SQ) is expected to grow by 102.87% in the next year.