BLOCK INC (SQ3.DE) Fundamental Analysis & Valuation
FRA:SQ3 • US8522341036
Current stock price
52.65 EUR
+1 (+1.94%)
Last:
This SQ3.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. SQ3.DE Profitability Analysis
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.
- SQ3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SQ3 has a better Return On Assets (3.30%) than 72.73% of its industry peers.
- SQ3 has a Return On Equity (5.88%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 7.71%, SQ3 is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SQ3 is below the industry average of 8.81%.
- The last Return On Invested Capital (7.71%) for SQ3 is above the 3 year average (4.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 5.88% | ||
| ROIC | 7.71% |
ROA(3y)3.74%
ROA(5y)2.12%
ROE(3y)6.52%
ROE(5y)4.3%
ROIC(3y)4.43%
ROIC(5y)N/A
1.3 Margins
- SQ3's Profit Margin of 5.40% is in line compared to the rest of the industry. SQ3 outperforms 47.27% 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 12.59%, SQ3 is in line with its industry, outperforming 50.91% of the companies in the same industry.
- SQ3's Operating Margin has improved in the last couple of years.
- SQ3 has a Gross Margin (42.82%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of SQ3 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.59% | ||
| PM (TTM) | 5.4% | ||
| GM | 42.82% |
OM growth 3YN/A
OM growth 5Y49.73%
PM growth 3YN/A
PM growth 5Y19.19%
GM growth 3Y7.8%
GM growth 5Y8.27%
2. SQ3.DE Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SQ3 is still creating some value.
- Compared to 1 year ago, SQ3 has less shares outstanding
- 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 2.63. 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 2.63 is fine compared to the rest of the industry. SQ3 outperforms 72.73% of its industry peers.
- SQ3 has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as SQ3 would need 3.57 years to pay back of all of its debts.
- SQ3's Debt to FCF ratio of 3.57 is fine compared to the rest of the industry. SQ3 outperforms 72.73% of its industry peers.
- SQ3 has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
- SQ3 has a better Debt to Equity ratio (0.30) than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.02
WACC7.58%
2.3 Liquidity
- SQ3 has a Current Ratio of 2.20. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
- SQ3 has a better Current ratio (2.20) than 70.91% of its industry peers.
- A Quick Ratio of 2.19 indicates that SQ3 has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 2.19, SQ3 is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.19 |
3. SQ3.DE Growth Analysis
3.1 Past
- SQ3 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.67%.
- The Earnings Per Share has been growing by 23.65% on average over the past years. This is a very strong growth
- Looking at the last year, SQ3 shows a small growth in Revenue. The Revenue has grown by 0.30% in the last year.
- SQ3 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.56% yearly.
EPS 1Y (TTM)-29.67%
EPS 3Y33.33%
EPS 5Y23.65%
EPS Q2Q%-8.45%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y11.33%
Revenue growth 5Y20.56%
Sales Q2Q%3.65%
3.2 Future
- SQ3 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.54% yearly.
- The Revenue is expected to grow by 10.39% on average over the next years. This is quite good.
EPS Next Y48.93%
EPS Next 2Y40.93%
EPS Next 3Y35.74%
EPS Next 5Y29.54%
Revenue Next Year10.12%
Revenue Next 2Y10.31%
Revenue Next 3Y11%
Revenue Next 5Y10.39%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. SQ3.DE Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.94 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.
- SQ3 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 17.43, the valuation of SQ3 can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SQ3 is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of SQ3 to the average of the S&P500 Index (23.54), we can say SQ3 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SQ3 indicates a somewhat cheap valuation: SQ3 is cheaper than 65.45% of the companies listed in the same industry.
- 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 | 15.2 | ||
| EV/EBITDA | 10.83 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as SQ3's earnings are expected to grow with 35.74% in the coming years.
PEG (NY)0.53
PEG (5Y)1.1
EPS Next 2Y40.93%
EPS Next 3Y35.74%
5. SQ3.DE Dividend Analysis
5.1 Amount
- SQ3 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SQ3.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:SQ3 (4/10/2026, 7:00:00 PM)
52.65
+1 (+1.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-26 2026-02-26/amc
Earnings (Next)04-30 2026-04-30/amc
Inst Owners81.27%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap31.54B
Revenue(TTM)24.19B
Net Income(TTM)1.31B
Analysts81.63
Price Target71.24 (35.31%)
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)-10.53%
Min EPS beat(2)-19.86%
Max EPS beat(2)-1.2%
EPS beat(4)0
Avg EPS beat(4)-17.06%
Min EPS beat(4)-36.25%
Max EPS beat(4)-1.2%
EPS beat(8)2
Avg EPS beat(8)-7.66%
EPS beat(12)5
Avg EPS beat(12)-3.8%
EPS beat(16)7
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.4%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-0.71%
Revenue beat(8)1
Avg Revenue beat(8)-3.68%
Revenue beat(12)5
Avg Revenue beat(12)-1%
Revenue beat(16)6
Avg Revenue beat(16)-1.12%
PT rev (1m)0%
PT rev (3m)-2.03%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 17.43 | ||
| P/S | 1.52 | ||
| P/FCF | 15.2 | ||
| P/OCF | 14.29 | ||
| P/B | 1.66 | ||
| P/tB | 4.06 | ||
| EV/EBITDA | 10.83 |
EPS(TTM)2.03
EY3.86%
EPS(NY)3.02
Fwd EY5.74%
FCF(TTM)3.46
FCFY6.58%
OCF(TTM)3.69
OCFY7%
SpS34.56
BVpS31.72
TBVpS12.96
PEG (NY)0.53
PEG (5Y)1.1
Graham Number38.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 5.88% | ||
| ROCE | 10.44% | ||
| ROIC | 7.71% | ||
| ROICexc | 10.23% | ||
| ROICexgc | 25.43% | ||
| OM | 12.59% | ||
| PM (TTM) | 5.4% | ||
| GM | 42.82% | ||
| FCFM | 10.02% |
ROA(3y)3.74%
ROA(5y)2.12%
ROE(3y)6.52%
ROE(5y)4.3%
ROIC(3y)4.43%
ROIC(5y)N/A
ROICexc(3y)6.05%
ROICexc(5y)N/A
ROICexgc(3y)16.79%
ROICexgc(5y)N/A
ROCE(3y)6%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y32.73%
ROICexc growth 3YN/A
ROICexc growth 5Y15.49%
OM growth 3YN/A
OM growth 5Y49.73%
PM growth 3YN/A
PM growth 5Y19.19%
GM growth 3Y7.8%
GM growth 5Y8.27%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 41.96% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 12.36 | ||
| Cash Conversion | 75.54% | ||
| Profit Quality | 185.71% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.19 | ||
| Altman-Z | 2.63 |
F-Score6
WACC7.58%
ROIC/WACC1.02
Cap/Depr(3y)39.96%
Cap/Depr(5y)79.17%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-29.67%
EPS 3Y33.33%
EPS 5Y23.65%
EPS Q2Q%-8.45%
EPS Next Y48.93%
EPS Next 2Y40.93%
EPS Next 3Y35.74%
EPS Next 5Y29.54%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y11.33%
Revenue growth 5Y20.56%
Sales Q2Q%3.65%
Revenue Next Year10.12%
Revenue Next 2Y10.31%
Revenue Next 3Y11%
Revenue Next 5Y10.39%
EBIT growth 1Y80.58%
EBIT growth 3YN/A
EBIT growth 5Y80.52%
EBIT Next Year134.59%
EBIT Next 3Y50.54%
EBIT Next 5Y15.43%
FCF growth 1Y56.09%
FCF growth 3Y681.09%
FCF growth 5Y58.39%
OCF growth 1Y51.09%
OCF growth 3Y144.77%
OCF growth 5Y46.55%
BLOCK INC / SQ3.DE Fundamental Analysis FAQ
What is the ChartMill fundamental rating of BLOCK INC (SQ3.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SQ3.DE.
What is the valuation status of BLOCK INC (SQ3.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to BLOCK INC (SQ3.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for BLOCK INC?
BLOCK INC (SQ3.DE) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for SQ3 stock?
The Earnings per Share (EPS) of BLOCK INC (SQ3.DE) is expected to grow by 48.93% in the next year.