SQUARESPACE INC - CLASS A (SQSP) Fundamental Analysis & Valuation

NYSE:SQSP • US85225A1079

Current stock price

46.57 USD
-0.1 (-0.21%)
At close:
46.75 USD
+0.18 (+0.39%)
After Hours:

This SQSP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. SQSP Profitability Analysis

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.
  • SQSP had a positive operating cash flow in each of the past 5 years.
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 has a Operating Margin of 4.68%. This is comparable to the rest of the industry: SQSP outperforms 56.79% of its industry peers.
  • 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 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

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3

2. SQSP Health Analysis

2.1 Basic Checks

  • SQSP 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 SQSP has been increased compared to 1 year ago.
  • The debt/assets ratio for SQSP has been reduced compared to a year ago.
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.
  • The Altman-Z score of SQSP (2.57) is comparable to the rest of the industry.
  • 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.
  • 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

  • A Current Ratio of 0.76 indicates that SQSP may have some problems paying 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.
  • A Quick Ratio of 0.76 indicates that SQSP may have some problems paying its short term obligations.
  • SQSP has a Quick ratio of 0.76. This is amonst the worse of the industry: SQSP underperforms 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. SQSP Growth Analysis

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.
  • SQSP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.77%.
  • 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

  • Based on estimates for the next years, SQSP will show a very strong growth in Earnings Per Share. The EPS will grow by 115.31% on average per year.
  • The Revenue is expected to grow by 14.77% on average over the next years. This is quite good.
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.
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

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3

4. SQSP Valuation Analysis

4.1 Price/Earnings Ratio

  • SQSP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • A Price/Forward Earnings ratio of 83.98 indicates a quite expensive valuation of SQSP.
  • SQSP's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of SQSP to the average of the S&P500 Index (21.41), 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

  • Based on the Enterprise Value to EBITDA ratio, SQSP is valued a bit more expensive than the industry average as 62.96% of the companies are valued more cheaply.
  • 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

  • The 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. SQSP Dividend Analysis

5.1 Amount

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

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SQSP Fundamentals: All Metrics, Ratios and Statistics

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
Industry Strength78.26
Industry Growth76.4
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 Number0 (-100%)
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 Fundamental Analysis 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.


What is the profitability of SQSP stock?

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.