BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - FRA:SQ3 - US8522341036 - Common Stock
63.49 EUR
-2.49 (-3.77%)
We assign a fundamental rating of 5 out of 10 to SQ3. SQ3 was compared to 47 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. While showing a medium growth rate, SQ3 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SQ3 was profitable.
In the past year SQ3 had a positive cash flow from operations.
Of the past 5 years SQ3 4 years were profitable.
In the past 5 years SQ3 always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.03%, SQ3 belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.35%, SQ3 is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
SQ3 has a Return On Invested Capital of 5.39%. This is in the better half of the industry: SQ3 outperforms 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROIC | 5.39% |
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
SQ3 has a Profit Margin (12.41%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
Looking at the Operating Margin, with a value of 8.60%, SQ3 is in line with its industry, outperforming 48.94% of the companies in the same industry.
In the last couple of years the Operating Margin of SQ3 has grown nicely.
The Gross Margin of SQ3 (39.38%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SQ3 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.6% | ||
| PM (TTM) | 12.41% | ||
| GM | 39.38% |
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
SQ3 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SQ3 has more shares outstanding than it did 1 year ago.
SQ3 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SQ3 has a worse debt to assets ratio.
2.2 Solvency
SQ3 has an Altman-Z score of 3.19. This indicates that SQ3 is financially healthy and has little risk of bankruptcy at the moment.
SQ3 has a better Altman-Z score (3.19) than 68.09% of its industry peers.
The Debt to FCF ratio of SQ3 is 5.49, which is a neutral value as it means it would take SQ3, 5.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.49, SQ3 is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that SQ3 is not too dependend on debt financing.
The Debt to Equity ratio of SQ3 (0.19) is better than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.67
WACC8.03%
2.3 Liquidity
SQ3 has a Current Ratio of 1.96. This is a normal value and indicates that SQ3 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.96, SQ3 belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
SQ3 has a Quick Ratio of 1.94. This is a normal value and indicates that SQ3 is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SQ3 (1.94) is better than 82.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The earnings per share for SQ3 have decreased by -0.36% in the last year.
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 1.41% in the last year.
The Revenue has been growing by 38.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-0.36%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
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-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue Next Year1.32%
Revenue Next 2Y5.6%
Revenue Next 3Y6.81%
Revenue Next 5Y10.16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 26.90 indicates a quite expensive valuation of SQ3.
Compared to the rest of the industry, the Price/Earnings ratio of SQ3 is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.06, SQ3 is valued at the same level.
The Price/Forward Earnings ratio is 19.86, which indicates a rather expensive current valuation of SQ3.
SQ3's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.64. SQ3 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SQ3 is valued a bit more expensive than 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.95 | ||
| EV/EBITDA | 19.03 |
4.3 Compensation for Growth
SQ3 has a very decent profitability rating, which may justify a higher PE ratio.
SQ3's earnings are expected to grow with 12.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y5.6%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
SQ3 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (9/25/2025, 7:00:00 PM)
63.49
-2.49 (-3.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners70.56%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap38.70B
Analysts77.08
Price Target74.38 (17.15%)
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)0
Avg EPS beat(2)-23.6%
Min EPS beat(2)-36.25%
Max EPS beat(2)-10.95%
EPS beat(4)0
Avg EPS beat(4)-16.74%
Min EPS beat(4)-36.25%
Max EPS beat(4)-0.18%
EPS beat(8)3
Avg EPS beat(8)-5.98%
EPS beat(12)6
Avg EPS beat(12)2.16%
EPS beat(16)8
Avg EPS beat(16)2.2%
Revenue beat(2)0
Avg Revenue beat(2)-6.41%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-5%
Revenue beat(4)0
Avg Revenue beat(4)-5.77%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-5%
Revenue beat(8)3
Avg Revenue beat(8)-2.77%
Revenue beat(12)5
Avg Revenue beat(12)-0.64%
Revenue beat(16)7
Avg Revenue beat(16)-1.82%
PT rev (1m)13.27%
PT rev (3m)20.25%
EPS NQ rev (1m)-4.66%
EPS NQ rev (3m)-9.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.86%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 19.86 | ||
| P/S | 1.91 | ||
| P/FCF | 42.95 | ||
| P/OCF | 37.72 | ||
| P/B | 2.05 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 19.03 |
EPS(TTM)2.36
EY3.72%
EPS(NY)3.2
Fwd EY5.03%
FCF(TTM)1.48
FCFY2.33%
OCF(TTM)1.68
OCFY2.65%
SpS33.26
BVpS30.92
TBVpS12.52
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROCE | 7.65% | ||
| ROIC | 5.39% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 21.16% | ||
| OM | 8.6% | ||
| PM (TTM) | 12.41% | ||
| GM | 39.38% | ||
| FCFM | 4.44% |
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
ROICexcg growth 3Y19.01%
ROICexcg 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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 40.44% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 8.31 | ||
| Cash Conversion | 49.99% | ||
| Profit Quality | 35.81% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 3.19 |
F-Score8
WACC8.03%
ROIC/WACC0.67
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)-0.36%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-33.33%
EPS Next Y-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
Revenue Next Year1.32%
Revenue Next 2Y5.6%
Revenue Next 3Y6.81%
Revenue Next 5Y10.16%
EBIT growth 1Y82.02%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.76%
EBIT Next 3Y61.21%
EBIT Next 5Y22.69%
FCF growth 1Y229.37%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y157.29%
OCF growth 3Y26.28%
OCF growth 5Y29.67%