SQUARESPACE INC - CLASS A (SQSP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SQSP - US85225A1079 - Common Stock
46.57 USD
-0.1 (-0.21%)
46.75 USD
+0.18 (+0.39%)
SQSP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. SQSP may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, SQSP is valued expensive at the moment.
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.
1.2 Ratios
SQSP has a Return On Assets (-0.50%) which is in line with its industry peers.
SQSP has a better Return On Invested Capital (9.88%) than 75.31% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Operating Margin, with a value of 4.68%, SQSP is in line with its industry, outperforming 56.79% of the companies in the same industry.
SQSP's Operating Margin has declined in the last couple of years.
SQSP's Gross Margin of 74.21% is amongst the best of the industry. SQSP outperforms 91.36% of its industry peers.
SQSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SQSP is destroying value.
The number of shares outstanding for SQSP has been increased compared to 1 year ago.
The debt/assets ratio for SQSP has been reduced compared to a year ago.
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.
SQSP has a Altman-Z score of 2.57. This is comparable to the rest of the industry: SQSP outperforms 54.32% of its industry peers.
SQSP has a debt to FCF ratio of 2.61. This is a good value and a sign of high solvency as SQSP would need 2.61 years to pay back of all of its debts.
The Debt to FCF ratio of SQSP (2.61) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 2.57 |
ROIC/WACC1
WACC9.93%
2.3 Liquidity
A Current Ratio of 0.76 indicates that SQSP may have some problems paying its short term obligations.
With a Current ratio value of 0.76, SQSP is not doing good in the industry: 83.95% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.76, SQSP is not doing good in the industry: 83.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
SQSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 97.53%, which is quite impressive.
Looking at the last year, SQSP shows a quite strong growth in Revenue. The Revenue has grown by 18.77% in the last year.
The Revenue has been growing by 21.02% on average over the past years. This is a very strong growth!
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.
SQSP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.77% yearly.
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
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
SQSP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
SQSP is valuated quite expensively with a Price/Forward Earnings ratio of 83.98.
The rest of the industry has a similar Price/Forward Earnings ratio as SQSP.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, SQSP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 83.98 |
4.2 Price Multiples
62.96% of the companies in the same industry are cheaper than SQSP, based on the Enterprise Value to EBITDA ratio.
SQSP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.87 | ||
| EV/EBITDA | 56.06 |
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.
SQSP's earnings are expected to grow with 177.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y261.81%
EPS Next 3Y177.11%
5. Dividend
5.1 Amount
No dividends for SQSP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.57
-0.1 (-0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners47.24%
Inst Owner Change-100%
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 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)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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.