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 50 industry peers in the Financial Services industry. SQ3 has only an average score on both its financial health and profitability. SQ3 is valued quite expensively, but it does show have an excellent growth rating.
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.
Each year in the past 5 years SQ3 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SQ3 (7.18%) is better than 78.00% of its industry peers.
SQ3's Return On Equity of 12.18% is in line compared to the rest of the industry. SQ3 outperforms 56.00% of its industry peers.
The Return On Invested Capital of SQ3 (4.50%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.18% | ||
| ROIC | 4.5% |
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 10.92% is in line compared to the rest of the industry. SQ3 outperforms 54.00% of its industry peers.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
SQ3 has a worse Operating Margin (7.40%) than 66.00% of its industry peers.
SQ3's Operating Margin has improved in the last couple of years.
SQ3 has a Gross Margin (37.95%) which 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 | 7.4% | ||
| PM (TTM) | 10.92% | ||
| GM | 37.95% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SQ3 is destroying value.
The number of shares outstanding for SQ3 has been increased compared to 1 year ago.
The number of shares outstanding for SQ3 has been increased compared to 5 years ago.
SQ3 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.84 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
SQ3's Altman-Z score of 2.84 is fine compared to the rest of the industry. SQ3 outperforms 66.00% of its industry peers.
SQ3 has a debt to FCF ratio of 4.78. This is a neutral value as SQ3 would need 4.78 years to pay back of all of its debts.
SQ3 has a better Debt to FCF ratio (4.78) than 66.00% of its industry peers.
SQ3 has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, SQ3 is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.54
WACC8.28%
2.3 Liquidity
SQ3 has a Current Ratio of 2.27. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
SQ3 has a Current ratio of 2.27. This is amongst the best in the industry. SQ3 outperforms 82.00% of its industry peers.
SQ3 has a Quick Ratio of 2.26. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
SQ3's Quick ratio of 2.26 is amongst the best of the industry. SQ3 outperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
SQ3 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.50%, which is quite impressive.
The Earnings Per Share has been growing by 33.32% on average over the past years. This is a very strong growth
SQ3 shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
SQ3 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
EPS 1Y (TTM)37.5%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-34.12%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-3.11%
3.2 Future
Based on estimates for the next years, SQ3 will show a very strong growth in Earnings Per Share. The EPS will grow by 22.41% on average per year.
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y-11.29%
EPS Next 2Y6.14%
EPS Next 3Y12.63%
EPS Next 5Y22.41%
Revenue Next Year3.22%
Revenue Next 2Y6.62%
Revenue Next 3Y6.97%
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
With a Price/Earnings ratio of 20.40, SQ3 is valued on the expensive side.
SQ3's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.43, SQ3 is valued a bit cheaper.
SQ3 is valuated correctly with a Price/Forward Earnings ratio of 16.58.
SQ3's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.17. SQ3 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 16.58 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.36 | ||
| EV/EBITDA | 16.71 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SQ3's earnings are expected to grow with 12.63% in the coming years.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y6.14%
EPS Next 3Y12.63%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (6/4/2025, 7:00:00 PM)
55.29
-0.33 (-0.59%)
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 Cap34.04B
Analysts81.6
Price Target59.61 (7.81%)
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)-27.92%
Min EPS beat(2)-36.25%
Max EPS beat(2)-19.6%
EPS beat(4)1
Avg EPS beat(4)-11.63%
Min EPS beat(4)-36.25%
Max EPS beat(4)9.51%
EPS beat(8)4
Avg EPS beat(8)-3.73%
EPS beat(12)7
Avg EPS beat(12)3.49%
EPS beat(16)9
Avg EPS beat(16)9.64%
Revenue beat(2)0
Avg Revenue beat(2)-6.45%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-5.07%
Revenue beat(4)0
Avg Revenue beat(4)-5.25%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-2.89%
Revenue beat(8)4
Avg Revenue beat(8)-1.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.2%
Revenue beat(16)7
Avg Revenue beat(16)-2.02%
PT rev (1m)-21.29%
PT rev (3m)-38.62%
EPS NQ rev (1m)-30.91%
EPS NQ rev (3m)-37.69%
EPS NY rev (1m)-26.54%
EPS NY rev (3m)-34.47%
Revenue NQ rev (1m)-3.84%
Revenue NQ rev (3m)-7.35%
Revenue NY rev (1m)-4.01%
Revenue NY rev (3m)-7.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 16.58 | ||
| P/S | 1.62 | ||
| P/FCF | 32.36 | ||
| P/OCF | 28.68 | ||
| P/B | 1.8 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 16.71 |
EPS(TTM)2.71
EY4.9%
EPS(NY)3.33
Fwd EY6.03%
FCF(TTM)1.71
FCFY3.09%
OCF(TTM)1.93
OCFY3.49%
SpS34.15
BVpS30.63
TBVpS12.23
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.18% | ||
| ROCE | 6.39% | ||
| ROIC | 4.5% | ||
| ROICexc | 6.3% | ||
| ROICexgc | 18.07% | ||
| OM | 7.4% | ||
| PM (TTM) | 10.92% | ||
| GM | 37.95% | ||
| FCFM | 5% |
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-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 41.87% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 8.75 | ||
| Cash Conversion | 63.22% | ||
| Profit Quality | 45.79% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 2.84 |
F-Score7
WACC8.28%
ROIC/WACC0.54
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)37.5%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-34.12%
EPS Next Y-11.29%
EPS Next 2Y6.14%
EPS Next 3Y12.63%
EPS Next 5Y22.41%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-3.11%
Revenue Next Year3.22%
Revenue Next 2Y6.62%
Revenue Next 3Y6.97%
Revenue Next 5Y10.16%
EBIT growth 1Y162.01%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year177.21%
EBIT Next 3Y59.24%
EBIT Next 5Y22.69%
FCF growth 1Y1415.77%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y460.98%
OCF growth 3Y26.28%
OCF growth 5Y29.67%