BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQ3 - US8522341036 - Common Stock
58.93 EUR
+0.26 (+0.44%)
Overall SQ3 gets a fundamental rating of 5 out of 10. We evaluated SQ3 against 58 industry peers in the Financial Services industry. Both the profitability and the financial health of SQ3 get a neutral evaluation. Nothing too spectacular is happening here. SQ3 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SQ3 was profitable.
SQ3 had a positive operating cash flow in the past year.
Of the past 5 years SQ3 4 years were profitable.
Each year in the past 5 years SQ3 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SQ3 (8.00%) is better than 89.66% of its industry peers.
SQ3's Return On Equity of 13.93% is fine compared to the rest of the industry. SQ3 outperforms 70.69% of its industry peers.
SQ3 has a better Return On Invested Capital (5.59%) than 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 13.93% | ||
| ROIC | 5.59% |
ROA(3y)2.06%
ROA(5y)1.89%
ROE(3y)3.51%
ROE(5y)4.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.08%, SQ3 is in line with its industry, outperforming 56.90% of the companies in the same industry.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
SQ3 has a Operating Margin (9.62%) which is comparable to the rest of the industry.
SQ3's Operating Margin has improved in the last couple of years.
SQ3 has a Gross Margin of 40.87%. This is comparable to the rest of the industry: SQ3 outperforms 46.55% of its industry peers.
SQ3's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.62% | ||
| PM (TTM) | 13.08% | ||
| GM | 40.87% |
OM growth 3Y43.23%
OM growth 5Y16.51%
PM growth 3Y133.66%
PM growth 5Y8.56%
GM growth 3Y13.77%
GM growth 5Y-1.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SQ3 is destroying value.
The number of shares outstanding for SQ3 has been increased compared to 1 year ago.
The number of shares outstanding for SQ3 has been increased compared to 5 years ago.
The debt/assets ratio for SQ3 is higher compared to a year ago.
2.2 Solvency
SQ3 has an Altman-Z score of 2.81. This is not the best score and indicates that SQ3 is in the grey zone with still only limited risk for bankruptcy at the moment.
SQ3's Altman-Z score of 2.81 is fine compared to the rest of the industry. SQ3 outperforms 68.97% of its industry peers.
SQ3 has a debt to FCF ratio of 4.25. This is a neutral value as SQ3 would need 4.25 years to pay back of all of its debts.
SQ3 has a better Debt to FCF ratio (4.25) than 65.52% of its industry peers.
SQ3 has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
SQ3 has a Debt to Equity ratio of 0.27. This is in the better half of the industry: SQ3 outperforms 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.69
WACC8.06%
2.3 Liquidity
SQ3 has a Current Ratio of 2.18. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
SQ3 has a Current ratio of 2.18. This is in the better half of the industry: SQ3 outperforms 72.41% of its industry peers.
A Quick Ratio of 2.17 indicates that SQ3 has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.17, SQ3 is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
SQ3 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.86%.
Measured over the past years, SQ3 shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.32% on average per year.
Looking at the last year, SQ3 shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
SQ3 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
EPS 1Y (TTM)-21.86%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-38.64%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
3.2 Future
Based on estimates for the next years, SQ3 will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.30% on average per year.
Based on estimates for the next years, SQ3 will show a quite strong growth in Revenue. The Revenue will grow by 10.16% on average per year.
EPS Next Y-27.45%
EPS Next 2Y0.44%
EPS Next 3Y9.5%
EPS Next 5Y14.3%
Revenue Next Year-0.08%
Revenue Next 2Y4.93%
Revenue Next 3Y6.92%
Revenue Next 5Y10.16%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
SQ3 is valuated quite expensively with a Price/Earnings ratio of 28.47.
The rest of the industry has a similar Price/Earnings ratio as SQ3.
The average S&P500 Price/Earnings ratio is at 27.17. SQ3 is around the same levels.
Based on the Price/Forward Earnings ratio of 20.37, the valuation of SQ3 can be described as rather expensive.
SQ3's Price/Forward Earnings ratio is in line with the industry average.
SQ3 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQ3 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.97 | ||
| EV/EBITDA | 15.23 |
4.3 Compensation for Growth
SQ3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y0.44%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:SQ3 (1/6/2026, 7:00:00 PM)
58.93
+0.26 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap35.81B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price Target72.72 (23.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0
Avg EPS beat(2)-15.41%
Min EPS beat(2)-19.86%
Max EPS beat(2)-10.95%
EPS beat(4)0
Avg EPS beat(4)-21.66%
Min EPS beat(4)-36.25%
Max EPS beat(4)-10.95%
EPS beat(8)2
Avg EPS beat(8)-10.55%
EPS beat(12)5
Avg EPS beat(12)-5.99%
EPS beat(16)8
Avg EPS beat(16)1.09%
Revenue beat(2)0
Avg Revenue beat(2)-4.55%
Min Revenue beat(2)-5%
Max Revenue beat(2)-4.09%
Revenue beat(4)0
Avg Revenue beat(4)-5.5%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-4.09%
Revenue beat(8)2
Avg Revenue beat(8)-3.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.95%
Revenue beat(16)7
Avg Revenue beat(16)-1.07%
PT rev (1m)-3.6%
PT rev (3m)-3.37%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-10.01%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-6.9%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 20.37 | ||
| P/S | 1.76 | ||
| P/FCF | 22.97 | ||
| P/OCF | 21.33 | ||
| P/B | 1.87 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 15.23 |
EPS(TTM)2.07
EY3.51%
EPS(NY)2.89
Fwd EY4.91%
FCF(TTM)2.57
FCFY4.35%
OCF(TTM)2.76
OCFY4.69%
SpS33.58
BVpS31.52
TBVpS13.13
PEG (NY)N/A
PEG (5Y)0.85
Graham Number38.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 13.93% | ||
| ROCE | 7.93% | ||
| ROIC | 5.59% | ||
| ROICexc | 8% | ||
| ROICexgc | 22.69% | ||
| OM | 9.62% | ||
| PM (TTM) | 13.08% | ||
| GM | 40.87% | ||
| FCFM | 7.64% |
ROA(3y)2.06%
ROA(5y)1.89%
ROE(3y)3.51%
ROE(5y)4.71%
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 3Y19.01%
ROICexgc growth 5Y9.35%
ROICexc growth 3Y-9.27%
ROICexc growth 5Y-6.03%
OM growth 3Y43.23%
OM growth 5Y16.51%
PM growth 3Y133.66%
PM growth 5Y8.56%
GM growth 3Y13.77%
GM growth 5Y-1.67%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 38.96% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 9.59 | ||
| Cash Conversion | 73.93% | ||
| Profit Quality | 58.41% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 2.81 |
F-Score7
WACC8.06%
ROIC/WACC0.69
Cap/Depr(3y)42.7%
Cap/Depr(5y)103.65%
Cap/Sales(3y)0.77%
Cap/Sales(5y)1.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.86%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-38.64%
EPS Next Y-27.45%
EPS Next 2Y0.44%
EPS Next 3Y9.5%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year-0.08%
Revenue Next 2Y4.93%
Revenue Next 3Y6.92%
Revenue Next 5Y10.16%
EBIT growth 1Y56.5%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.44%
EBIT Next 3Y61.29%
EBIT Next 5Y22.69%
FCF growth 1Y130.22%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y108.93%
OCF growth 3Y26.28%
OCF growth 5Y29.67%
BLOCK INC / SQ3.DE FAQ
What is the ChartMill fundamental rating of BLOCK INC (SQ3.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SQ3.DE.
What is the valuation status of BLOCK INC (SQ3.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to BLOCK INC (SQ3.DE). This can be considered as Overvalued.
What is the profitability of SQ3 stock?
BLOCK INC (SQ3.DE) has a profitability rating of 6 / 10.
What is the valuation of BLOCK INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BLOCK INC (SQ3.DE) is 28.47 and the Price/Book (PB) ratio is 1.87.
What is the financial health of BLOCK INC (SQ3.DE) stock?
The financial health rating of BLOCK INC (SQ3.DE) is 6 / 10.