BLOCK INC (SQ3.DE) Stock Fundamental Analysis
FRA:SQ3 - US8522341036 - Common Stock
64.68 EUR
-0.04 (-0.06%)
Taking everything into account, SQ3 scores 4 out of 10 in our fundamental rating. SQ3 was compared to 50 industry peers in the Financial Services industry. SQ3 has an average financial health and profitability rating. SQ3 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SQ3 had positive earnings in the past year.
In the past year SQ3 had a positive cash flow from operations.
SQ3 had positive earnings in 4 of the past 5 years.
In the past 5 years SQ3 always reported a positive cash flow from operatings.
1.2 Ratios
SQ3 has a Return On Assets of 8.03%. This is amongst the best in the industry. SQ3 outperforms 82.00% of its industry peers.
The Return On Equity of SQ3 (13.35%) is better than 66.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.39%, SQ3 is in line with its industry, outperforming 60.00% of the companies in the same industry.
| 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 in line with its industry peers.
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 44.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SQ3 has grown nicely.
With a Gross Margin value of 39.38%, SQ3 perfoms like the industry average, outperforming 44.00% of the companies in the same 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.
Compared to 5 years ago, SQ3 has more shares outstanding
SQ3 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.14 indicates that SQ3 is not in any danger for bankruptcy at the moment.
SQ3 has a better Altman-Z score (3.14) than 66.00% 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.
SQ3's Debt to FCF ratio of 5.49 is in line compared to the rest of the industry. SQ3 outperforms 58.00% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that SQ3 is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, SQ3 is doing good in the industry, outperforming 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.67
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.96 indicates that SQ3 should not have too much problems paying its short term obligations.
SQ3 has a Current ratio of 1.96. This is in the better half of the industry: SQ3 outperforms 74.00% of its industry peers.
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.
SQ3 has a Quick ratio of 1.94. This is in the better half of the industry: SQ3 outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
SQ3 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
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.
SQ3 shows a small growth in Revenue. In the last year, the Revenue has grown by 1.41%.
Measured over the past years, SQ3 shows a very strong growth in Revenue. The Revenue has been growing by 38.62% on average per year.
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
SQ3 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.30% yearly.
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue Next Year1.06%
Revenue Next 2Y5.4%
Revenue Next 3Y6.43%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.18 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.
The average S&P500 Price/Earnings ratio is at 27.03. SQ3 is around the same levels.
A Price/Forward Earnings ratio of 20.05 indicates a rather expensive valuation of SQ3.
SQ3's Price/Forward Earnings is on the same level as the industry average.
SQ3's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 20.05 |
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 indicates a slightly more expensive valuation: SQ3 is more expensive than 62.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.35 | ||
| EV/EBITDA | 18.47 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SQ3's earnings are expected to grow with 12.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.82
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 (9/4/2025, 7:00:00 PM)
64.68
-0.04 (-0.06%)
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 Cap39.43B
Analysts80
Price Target72.95 (12.79%)
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)13.11%
PT rev (3m)22.38%
EPS NQ rev (1m)-9.33%
EPS NQ rev (3m)-40.88%
EPS NY rev (1m)-2.88%
EPS NY rev (3m)-11.12%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)-5.81%
Revenue NY rev (1m)-1.84%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 20.05 | ||
| P/S | 1.93 | ||
| P/FCF | 43.35 | ||
| P/OCF | 38.07 | ||
| P/B | 2.07 | ||
| P/tB | 5.12 | ||
| EV/EBITDA | 18.47 |
EPS(TTM)2.38
EY3.68%
EPS(NY)3.23
Fwd EY4.99%
FCF(TTM)1.49
FCFY2.31%
OCF(TTM)1.7
OCFY2.63%
SpS33.57
BVpS31.21
TBVpS12.64
PEG (NY)N/A
PEG (5Y)0.82
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 | 3.14 |
F-Score8
WACC8.09%
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 Year1.06%
Revenue Next 2Y5.4%
Revenue Next 3Y6.43%
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%