BLOCK INC (SQ3.DE) Stock Fundamental Analysis
FRA:SQ3 - Deutsche Boerse Ag - US8522341036 - Common Stock - Currency: EUR
SQ3 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 industry peers in the Financial Services industry. SQ3 has only an average score on both its financial health and profitability. SQ3 is growing strongly while it is still valued neutral. This is a good combination! With these ratings, SQ3 could be worth investigating further 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.
In the past 5 years SQ3 always reported a positive cash flow from operatings.
1.2 Ratios
SQ3's Return On Assets of 7.88% is fine compared to the rest of the industry. SQ3 outperforms 78.72% of its industry peers.
SQ3 has a Return On Equity of 13.62%. This is in the better half of the industry: SQ3 outperforms 63.83% of its industry peers.
SQ3 has a Return On Invested Capital (4.21%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 13.62% | ||
| ROIC | 4.21% |
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's Profit Margin of 12.01% is in line compared to the rest of the industry. SQ3 outperforms 59.57% of its industry peers.
SQ3's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.99%, SQ3 is doing worse than 61.70% of the companies in the same industry.
SQ3's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.85%, SQ3 is in line with its industry, outperforming 44.68% of the companies in the same industry.
SQ3's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.99% | ||
| PM (TTM) | 12.01% | ||
| GM | 36.85% |
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.
Compared to 1 year ago, SQ3 has more shares outstanding
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 2.65. 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 2.65 is fine compared to the rest of the industry. SQ3 outperforms 63.83% of its industry peers.
The Debt to FCF ratio of SQ3 is 4.88, which is a neutral value as it means it would take SQ3, 4.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.88, SQ3 is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that SQ3 is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.30, SQ3 is doing good in the industry, outperforming 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 4.88 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.3
WACC13.87%
2.3 Liquidity
A Current Ratio of 2.33 indicates that SQ3 has no problem at all paying its short term obligations.
SQ3 has a better Current ratio (2.33) than 80.85% of its industry peers.
SQ3 has a Quick Ratio of 2.33. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.33, SQ3 belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 88.27% over the past 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.
SQ3 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.06%.
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)88.27%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%57.78%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%4.5%
3.2 Future
The Earnings Per Share is expected to grow by 22.41% on average over the next years. This is a very strong growth
SQ3 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
EPS Next Y20.76%
EPS Next 2Y23.26%
EPS Next 3Y21.2%
EPS Next 5Y22.41%
Revenue Next Year7.53%
Revenue Next 2Y9.09%
Revenue Next 3Y8.58%
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 17.17, the valuation of SQ3 can be described as rather expensive.
SQ3's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.75. SQ3 is valued slightly cheaper when compared to this.
SQ3 is valuated correctly with a Price/Forward Earnings ratio of 14.20.
The rest of the industry has a similar Price/Forward Earnings ratio as SQ3.
When comparing the Price/Forward Earnings ratio of SQ3 to the average of the S&P500 Index (20.49), we can say SQ3 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.17 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA is on the same level as 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 | 23.05 | ||
| EV/EBITDA | 16.73 |
4.3 Compensation for Growth
SQ3's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SQ3's earnings are expected to grow with 21.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)0.52
EPS Next 2Y23.26%
EPS Next 3Y21.2%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (4/30/2025, 7:00:00 PM)
50.83
-0.93 (-1.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners71.38%
Inst Owner ChangeN/A
Ins Owners1.02%
Ins Owner ChangeN/A
Market Cap31.49B
Analysts80.82
Price Target75.73 (48.99%)
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)-9.89%
Min EPS beat(2)-19.6%
Max EPS beat(2)-0.18%
EPS beat(4)2
Avg EPS beat(4)1.75%
Min EPS beat(4)-19.6%
Max EPS beat(4)17.26%
EPS beat(8)5
Avg EPS beat(8)2.84%
EPS beat(12)7
Avg EPS beat(12)5.4%
EPS beat(16)10
Avg EPS beat(16)21.31%
Revenue beat(2)0
Avg Revenue beat(2)-5.13%
Min Revenue beat(2)-5.19%
Max Revenue beat(2)-5.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.96%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)1.33%
Revenue beat(8)5
Avg Revenue beat(8)0.71%
Revenue beat(12)6
Avg Revenue beat(12)-0.02%
Revenue beat(16)8
Avg Revenue beat(16)1.54%
PT rev (1m)-20.04%
PT rev (3m)-22.02%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-13.6%
EPS NY rev (1m)-2.4%
EPS NY rev (3m)-11.49%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-4.43%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.17 | ||
| Fwd PE | 14.2 | ||
| P/S | 1.48 | ||
| P/FCF | 23.05 | ||
| P/OCF | 20.97 | ||
| P/B | 1.68 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 16.73 |
EPS(TTM)2.96
EY5.82%
EPS(NY)3.58
Fwd EY7.04%
FCF(TTM)2.2
FCFY4.34%
OCF(TTM)2.42
OCFY4.77%
SpS34.24
BVpS30.19
TBVpS11.95
PEG (NY)0.83
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.88% | ||
| ROE | 13.62% | ||
| ROCE | 5.97% | ||
| ROIC | 4.21% | ||
| ROICexc | 6.01% | ||
| ROICexgc | 17.2% | ||
| OM | 6.99% | ||
| PM (TTM) | 12.01% | ||
| GM | 36.85% | ||
| FCFM | 6.44% |
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-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 4.88 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 40.93% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.77% | ||
| Profit Quality | 53.62% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | 2.65 |
F-Score6
WACC13.87%
ROIC/WACC0.3
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)88.27%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%57.78%
EPS Next Y20.76%
EPS Next 2Y23.26%
EPS Next 3Y21.2%
EPS Next 5Y22.41%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%4.5%
Revenue Next Year7.53%
Revenue Next 2Y9.09%
Revenue Next 3Y8.58%
Revenue Next 5Y10.16%
EBIT growth 1Y341.71%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year201.23%
EBIT Next 3Y65.74%
EBIT Next 5Y22.69%
FCF growth 1Y3195.04%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y1591.1%
OCF growth 3Y26.28%
OCF growth 5Y29.67%