SQUARESPACE INC - CLASS A (SQSP) Stock Fundamental Analysis

NYSE:SQSP • US85225A1079

46.57 USD
-0.1 (-0.21%)
At close: Oct 16, 2024
46.75 USD
+0.18 (+0.39%)
After Hours: 10/16/2024, 9:01:31 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Taking everything into account, SQSP scores 3 out of 10 in our fundamental rating. SQSP was compared to 86 industry peers in the IT Services industry. SQSP has a bad profitability rating. Also its financial health evaluation is rather negative. SQSP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year SQSP has reported negative net income.
  • In the past year SQSP had a positive cash flow from operations.
  • SQSP had negative earnings in each of the past 5 years.
  • In the past 5 years SQSP always reported a positive cash flow from operatings.
SQSP Yearly Net Income VS EBIT VS OCF VS FCFSQSP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M

1.2 Ratios

  • SQSP's Return On Assets of -0.50% is in line compared to the rest of the industry. SQSP outperforms 45.68% of its industry peers.
  • With a decent Return On Invested Capital value of 9.88%, SQSP is doing good in the industry, outperforming 75.31% of the companies in the same industry.
Industry RankSector Rank
ROA -0.5%
ROE N/A
ROIC 9.88%
ROA(3y)-21.03%
ROA(5y)-44.47%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SQSP Yearly ROA, ROE, ROICSQSP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 500 1K 1.5K

1.3 Margins

  • SQSP's Operating Margin of 4.68% is in line compared to the rest of the industry. SQSP outperforms 56.79% of its industry peers.
  • In the last couple of years the Operating Margin of SQSP has declined.
  • SQSP has a better Gross Margin (74.21%) than 91.36% of its industry peers.
  • In the last couple of years the Gross Margin of SQSP has remained more or less at the same level.
Industry RankSector Rank
OM 4.68%
PM (TTM) N/A
GM 74.21%
OM growth 3Y8.52%
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.89%
GM growth 5Y-0.62%
SQSP Yearly Profit, Operating, Gross MarginsSQSP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SQSP is destroying value.
  • SQSP has more shares outstanding than it did 1 year ago.
  • SQSP has a better debt/assets ratio than last year.
SQSP Yearly Shares OutstandingSQSP Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
SQSP Yearly Total Debt VS Total AssetsSQSP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

  • An Altman-Z score of 2.57 indicates that SQSP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.57, SQSP is in line with its industry, outperforming 54.32% of the companies in the same industry.
  • The Debt to FCF ratio of SQSP is 2.61, which is a good value as it means it would take SQSP, 2.61 years of fcf income to pay off all of its debts.
  • SQSP's Debt to FCF ratio of 2.61 is fine compared to the rest of the industry. SQSP outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 2.61
Altman-Z 2.57
ROIC/WACC1
WACC9.93%
SQSP Yearly LT Debt VS Equity VS FCFSQSP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 200M -200M 400M -400M

2.3 Liquidity

  • SQSP has a Current Ratio of 0.76. This is a bad value and indicates that SQSP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SQSP has a Current ratio of 0.76. This is amonst the worse of the industry: SQSP underperforms 83.95% of its industry peers.
  • SQSP has a Quick Ratio of 0.76. This is a bad value and indicates that SQSP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • SQSP has a worse Quick ratio (0.76) than 83.95% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
SQSP Yearly Current Assets VS Current LiabilitesSQSP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 97.53% over the past year.
  • Looking at the last year, SQSP shows a quite strong growth in Revenue. The Revenue has grown by 18.77% in the last year.
  • SQSP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.02% yearly.
EPS 1Y (TTM)97.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)18.77%
Revenue growth 3Y17.68%
Revenue growth 5Y21.02%
Sales Q2Q%19.89%

3.2 Future

  • SQSP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 115.31% yearly.
  • Based on estimates for the next years, SQSP will show a quite strong growth in Revenue. The Revenue will grow by 14.77% on average per year.
EPS Next Y732.4%
EPS Next 2Y261.81%
EPS Next 3Y177.11%
EPS Next 5Y115.31%
Revenue Next Year20.35%
Revenue Next 2Y17.46%
Revenue Next 3Y15.64%
Revenue Next 5Y14.77%

3.3 Evolution

  • 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.
SQSP Yearly Revenue VS EstimatesSQSP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B 2.5B
SQSP Yearly EPS VS EstimatesSQSP Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 -1 2 3

More info and screens

Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for SQSP. In the last year negative earnings were reported.
  • A Price/Forward Earnings ratio of 83.98 indicates a quite expensive valuation of SQSP.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SQSP.
  • When comparing the Price/Forward Earnings ratio of SQSP to the average of the S&P500 Index (28.11), we can say SQSP is valued expensively.
Industry RankSector Rank
PE N/A
Fwd PE 83.98
SQSP Price Earnings VS Forward Price EarningsSQSP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400 -600 -800 -1K

4.2 Price Multiples

  • SQSP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SQSP is more expensive than 62.96% of the companies in the same industry.
  • SQSP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 30.87
EV/EBITDA 56.06
SQSP Per share dataSQSP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6

4.3 Compensation for Growth

  • SQSP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as SQSP's earnings are expected to grow with 177.10% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y261.81%
EPS Next 3Y177.11%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SQSP does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

SQUARESPACE INC - CLASS A

NYSE:SQSP (10/16/2024, 9:01:31 PM)

After market: 46.75 +0.18 (+0.39%)

46.57

-0.1 (-0.21%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)08-02
Earnings (Next)11-05
Inst Owners47.24%
Inst Owner Change0%
Ins Owners7.17%
Ins Owner Change0%
Market Cap6.45B
Revenue(TTM)1.11B
Net Income(TTM)-4.97M
Analysts71.11
Price Target46.32 (-0.54%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)1
Avg EPS beat(2)18.28%
Min EPS beat(2)-63.44%
Max EPS beat(2)100%
EPS beat(4)1
Avg EPS beat(4)-56.87%
Min EPS beat(4)-191.2%
Max EPS beat(4)100%
EPS beat(8)2
Avg EPS beat(8)-212.48%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.25%
Revenue beat(4)2
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.65%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)3
Avg Revenue beat(12)-0.36%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.54%
PT rev (3m)2.74%
EPS NQ rev (1m)41.48%
EPS NQ rev (3m)-14.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.58%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 83.98
P/S 5.83
P/FCF 30.87
P/OCF 28.69
P/B N/A
P/tB N/A
EV/EBITDA 56.06
EPS(TTM)-0.04
EYN/A
EPS(NY)0.55
Fwd EY1.19%
FCF(TTM)1.51
FCFY3.24%
OCF(TTM)1.62
OCFY3.49%
SpS7.98
BVpS-1.75
TBVpS-4.19
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -0.5%
ROE N/A
ROCE 12.51%
ROIC 9.88%
ROICexc 44.8%
ROICexgc N/A
OM 4.68%
PM (TTM) N/A
GM 74.21%
FCFM 18.89%
ROA(3y)-21.03%
ROA(5y)-44.47%
ROE(3y)N/A
ROE(5y)N/A
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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y8.52%
OM growth 5Y-10.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.89%
GM growth 5Y-0.62%
F-Score5
Asset Turnover1.1
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 2.61
Debt/EBITDA 4.13
Cap/Depr 23.94%
Cap/Sales 1.44%
Interest Coverage 1.32
Cash Conversion 190.39%
Profit Quality N/A
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 2.57
F-Score5
WACC9.93%
ROIC/WACC1
Cap/Depr(3y)36.24%
Cap/Depr(5y)35.04%
Cap/Sales(3y)1.47%
Cap/Sales(5y)1.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)97.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y732.4%
EPS Next 2Y261.81%
EPS Next 3Y177.11%
EPS Next 5Y115.31%
Revenue 1Y (TTM)18.77%
Revenue growth 3Y17.68%
Revenue growth 5Y21.02%
Sales Q2Q%19.89%
Revenue Next Year20.35%
Revenue Next 2Y17.46%
Revenue Next 3Y15.64%
Revenue Next 5Y14.77%
EBIT growth 1Y-35.06%
EBIT growth 3Y27.71%
EBIT growth 5Y8.85%
EBIT Next Year171.84%
EBIT Next 3Y62.45%
EBIT Next 5Y41.74%
FCF growth 1Y56.14%
FCF growth 3Y13.8%
FCF growth 5YN/A
OCF growth 1Y51.78%
OCF growth 3Y15.5%
OCF growth 5YN/A

SQUARESPACE INC - CLASS A / SQSP FAQ

Can you provide the ChartMill fundamental rating for SQUARESPACE INC - CLASS A?

ChartMill assigns a fundamental rating of 3 / 10 to SQSP.


Can you provide the valuation status for SQUARESPACE INC - CLASS A?

ChartMill assigns a valuation rating of 3 / 10 to SQUARESPACE INC - CLASS A (SQSP). This can be considered as Overvalued.


Can you provide the profitability details for SQUARESPACE INC - CLASS A?

SQUARESPACE INC - CLASS A (SQSP) has a profitability rating of 3 / 10.


What is the financial health of SQUARESPACE INC - CLASS A (SQSP) stock?

The financial health rating of SQUARESPACE INC - CLASS A (SQSP) is 3 / 10.