BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - FRA:SQ3 - US8522341036 - Common Stock
56.52 EUR
+1.33 (+2.41%)
Overall SQ3 gets a fundamental rating of 5 out of 10. We evaluated SQ3 against 50 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 shows excellent growth, but is valued quite expensive already. These ratings would make SQ3 suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year SQ3 was profitable.
SQ3 had a positive operating cash flow in the past year.
SQ3 had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SQ3 had a positive operating cash flow.
1.2 Ratios
SQ3's Return On Assets of 8.03% is amongst the best of the industry. SQ3 outperforms 92.00% of its industry peers.
Looking at the Return On Equity, with a value of 13.35%, SQ3 is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.39%, SQ3 is doing good in the industry, outperforming 66.00% 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
The Profit Margin of SQ3 (12.41%) is comparable to the rest of the industry.
SQ3's Profit Margin has improved in the last couple of years.
SQ3's Operating Margin of 8.60% is in line compared to the rest of the industry. SQ3 outperforms 54.00% of its industry peers.
SQ3's Operating Margin has improved in the last couple of years.
SQ3 has a Gross Margin of 39.38%. This is comparable to the rest of the industry: SQ3 outperforms 48.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SQ3 is destroying value.
SQ3 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SQ3 has more shares outstanding
The debt/assets ratio for SQ3 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.89 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SQ3 (2.89) is better 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.
The Debt to FCF ratio of SQ3 (5.49) is better than 62.00% of its industry peers.
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 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.68
WACC7.9%
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.
With a decent Current ratio value of 1.96, SQ3 is doing good in the industry, outperforming 72.00% of the companies in the same industry.
A Quick Ratio of 1.94 indicates that SQ3 should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.94, SQ3 is doing good in the industry, outperforming 74.00% of the companies in the same industry.
| 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 strongly by -21.86% in the last year.
The Earnings Per Share has been growing by 33.32% on average over the past years. This is a very strong growth
The Revenue has grown by 10.06% in the past year. This is quite good.
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)10.06%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
3.2 Future
The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y-21.7%
EPS Next 2Y4.94%
EPS Next 3Y11.79%
EPS Next 5Y14.3%
Revenue Next Year1.35%
Revenue Next 2Y5.55%
Revenue Next 3Y6.48%
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
Based on the Price/Earnings ratio of 26.91, the valuation of SQ3 can be described as expensive.
Based on the Price/Earnings ratio, SQ3 is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
SQ3's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.28.
With a Price/Forward Earnings ratio of 17.62, SQ3 is valued on the expensive side.
SQ3's Price/Forward Earnings ratio is in line with the industry average.
SQ3 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.91 | ||
| Fwd PE | 17.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SQ3 is valued a bit cheaper than 62.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SQ3 is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.63 | ||
| EV/EBITDA | 15.96 |
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)0.81
EPS Next 2Y4.94%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
SQ3 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (11/10/2025, 7:00:00 PM)
56.52
+1.33 (+2.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners75.03%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap34.45B
Revenue(TTM)24.12B
Net Income(TTM)2.96B
Analysts77.14
Price Target77.51 (37.14%)
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)2.99%
PT rev (3m)18.04%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-9.92%
EPS NY rev (1m)0.48%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.91 | ||
| Fwd PE | 17.62 | ||
| P/S | 1.67 | ||
| P/FCF | 37.63 | ||
| P/OCF | 33.05 | ||
| P/B | 1.8 | ||
| P/tB | 4.44 | ||
| EV/EBITDA | 15.96 |
EPS(TTM)2.1
EY3.72%
EPS(NY)3.21
Fwd EY5.67%
FCF(TTM)1.5
FCFY2.66%
OCF(TTM)1.71
OCFY3.03%
SpS33.79
BVpS31.41
TBVpS12.72
PEG (NY)N/A
PEG (5Y)0.81
Graham Number38.53
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
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-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 | 2.89 |
F-Score8
WACC7.9%
ROIC/WACC0.68
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-21.7%
EPS Next 2Y4.94%
EPS Next 3Y11.79%
EPS Next 5Y14.3%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year1.35%
Revenue Next 2Y5.55%
Revenue Next 3Y6.48%
Revenue Next 5Y10.16%
EBIT growth 1Y82.02%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year187.09%
EBIT Next 3Y61.68%
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%
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.
Can you provide the valuation status for BLOCK INC?
ChartMill assigns a valuation rating of 3 / 10 to BLOCK INC (SQ3.DE). This can be considered as Overvalued.
How profitable is BLOCK INC (SQ3.DE) stock?
BLOCK INC (SQ3.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for SQ3 stock?
The financial health rating of BLOCK INC (SQ3.DE) is 5 / 10.