BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - FRA:SQ3 - US8522341036 - Common Stock
64.11 EUR
-1.97 (-2.98%)
SQ3 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 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 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.
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 has a Return On Assets of 8.03%. This is amongst the best in the industry. SQ3 outperforms 92.16% of its industry peers.
With a decent Return On Equity value of 13.35%, SQ3 is doing good in the industry, outperforming 70.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.39%, SQ3 is in the better half of the industry, outperforming 64.71% 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
Looking at the Profit Margin, with a value of 12.41%, SQ3 is in line with its industry, outperforming 58.82% of the companies in the same industry.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
With a Operating Margin value of 8.60%, SQ3 perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
SQ3's Operating Margin has improved in the last couple of years.
SQ3 has a Gross Margin (39.38%) 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 | 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.
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.
The debt/assets ratio for SQ3 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.18 indicates that SQ3 is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.18, SQ3 is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SQ3 has a debt to FCF ratio of 5.49. This is a neutral value as SQ3 would need 5.49 years to pay back of all of its debts.
The Debt to FCF ratio of SQ3 (5.49) is better than 60.78% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that SQ3 is not too dependend on debt financing.
SQ3's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. SQ3 outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.68
WACC7.91%
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.
Looking at the Current ratio, with a value of 1.96, SQ3 is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
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 better Quick ratio (1.94) than 74.51% of its industry peers.
| 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 by -0.36% 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 been growing slightly by 1.41% in the past year.
The Revenue has been growing by 38.62% on average over the past years. This is a very strong growth!
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.
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 Y-22.07%
EPS Next 2Y4.63%
EPS Next 3Y11.47%
EPS Next 5Y14.3%
Revenue Next Year1.32%
Revenue Next 2Y5.59%
Revenue Next 3Y6.99%
Revenue Next 5Y10.16%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 26.94, the valuation of SQ3 can be described as expensive.
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 27.40. SQ3 is around the same levels.
The Price/Forward Earnings ratio is 20.24, which indicates a rather expensive current valuation of SQ3.
SQ3's Price/Forward Earnings ratio is in line with the industry average.
SQ3 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.94 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SQ3.
64.71% of the companies in the same industry are cheaper than SQ3, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.97 | ||
| EV/EBITDA | 18.88 |
4.3 Compensation for Growth
The decent profitability rating of SQ3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y4.63%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (10/17/2025, 7:00:00 PM)
64.11
-1.97 (-2.98%)
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 Cap39.08B
Analysts76.67
Price Target75.26 (17.39%)
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)3.16%
PT rev (3m)21.67%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-9.57%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-4.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.94 | ||
| Fwd PE | 20.24 | ||
| P/S | 1.91 | ||
| P/FCF | 42.97 | ||
| P/OCF | 37.74 | ||
| P/B | 2.05 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 18.88 |
EPS(TTM)2.38
EY3.71%
EPS(NY)3.17
Fwd EY4.94%
FCF(TTM)1.49
FCFY2.33%
OCF(TTM)1.7
OCFY2.65%
SpS33.57
BVpS31.2
TBVpS12.63
PEG (NY)N/A
PEG (5Y)0.81
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 | 3.18 |
F-Score8
WACC7.91%
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)-0.36%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-33.33%
EPS Next Y-22.07%
EPS Next 2Y4.63%
EPS Next 3Y11.47%
EPS Next 5Y14.3%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
Revenue Next Year1.32%
Revenue Next 2Y5.59%
Revenue Next 3Y6.99%
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%