BLOCK INC (XYZ) Stock Fundamental Analysis
USA - NYSE:XYZ - US8522341036 - Common Stock
70.93 USD
-2.72 (-3.69%)
62.75 USD
-8.18 (-11.53%)
We assign a fundamental rating of 5 out of 10 to XYZ. XYZ was compared to 98 industry peers in the Financial Services industry. XYZ has an average financial health and profitability rating. XYZ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year XYZ was profitable.
In the past year XYZ had a positive cash flow from operations.
XYZ had positive earnings in 4 of the past 5 years.
XYZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.03%, XYZ belongs to the top of the industry, outperforming 84.69% of the companies in the same industry.
With a decent Return On Equity value of 13.35%, XYZ is doing good in the industry, outperforming 69.39% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.05%, XYZ is doing good in the industry, outperforming 68.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROIC | 6.05% |
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
XYZ has a Profit Margin (12.41%) which is in line with its industry peers.
XYZ's Profit Margin has improved in the last couple of years.
XYZ has a Operating Margin (8.60%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of XYZ has grown nicely.
XYZ has a Gross Margin (39.38%) which is in line with its industry peers.
In the last couple of years the Gross Margin of XYZ 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYZ is destroying value.
XYZ has more shares outstanding than it did 1 year ago.
XYZ has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, XYZ has a worse debt to assets ratio.
2.2 Solvency
XYZ has an Altman-Z score of 3.09. This indicates that XYZ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.09, XYZ belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
XYZ has a debt to FCF ratio of 5.49. This is a neutral value as XYZ would need 5.49 years to pay back of all of its debts.
XYZ's Debt to FCF ratio of 5.49 is fine compared to the rest of the industry. XYZ outperforms 65.31% of its industry peers.
XYZ has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of XYZ (0.19) is better than 66.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.09 |
ROIC/WACC0.74
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYZ should not have too much problems paying its short term obligations.
The Current ratio of XYZ (1.96) is better than 74.49% of its industry peers.
A Quick Ratio of 1.94 indicates that XYZ should not have too much problems paying its short term obligations.
XYZ has a better Quick ratio (1.94) than 74.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
XYZ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
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.
Measured over the past years, XYZ shows a very strong growth in Revenue. The Revenue has been growing by 38.62% on average per year.
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
XYZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.30% yearly.
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y-22.61%
EPS Next 2Y4.02%
EPS Next 3Y10.9%
EPS Next 5Y14.3%
Revenue Next Year1.41%
Revenue Next 2Y5.59%
Revenue Next 3Y6.98%
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.
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 25.61, the valuation of XYZ can be described as expensive.
Based on the Price/Earnings ratio, XYZ is valued a bit more expensive than 67.35% of the companies in the same industry.
XYZ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.45 indicates a rather expensive valuation of XYZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XYZ indicates a slightly more expensive valuation: XYZ is more expensive than 61.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, XYZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.61 | ||
| Fwd PE | 19.45 |
4.2 Price Multiples
XYZ's Enterprise Value to EBITDA ratio is in line with the industry average.
XYZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.81 | ||
| EV/EBITDA | 18.04 |
4.3 Compensation for Growth
The decent profitability rating of XYZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y4.02%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
No dividends for XYZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.93
-2.72 (-3.69%)
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 Change-3.52%
Market Cap43.24B
Revenue(TTM)23.83B
Net Income(TTM)2.96B
Analysts76.67
Price Target90.22 (27.2%)
Short Float %3.9%
Short Ratio3.57
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)2.25%
PT rev (3m)23.34%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-4.68%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.61 | ||
| Fwd PE | 19.45 | ||
| P/S | 1.81 | ||
| P/FCF | 40.81 | ||
| P/OCF | 35.85 | ||
| P/B | 1.95 | ||
| P/tB | 4.82 | ||
| EV/EBITDA | 18.04 |
EPS(TTM)2.77
EY3.91%
EPS(NY)3.65
Fwd EY5.14%
FCF(TTM)1.74
FCFY2.45%
OCF(TTM)1.98
OCFY2.79%
SpS39.1
BVpS36.35
TBVpS14.72
PEG (NY)N/A
PEG (5Y)0.77
Graham Number47.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROCE | 7.65% | ||
| ROIC | 6.05% | ||
| ROICexc | 8.1% | ||
| ROICexgc | 23.75% | ||
| 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
ROICexgc growth 3Y19.01%
ROICexgc 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 | 3.09 |
F-Score8
WACC8.16%
ROIC/WACC0.74
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-22.61%
EPS Next 2Y4.02%
EPS Next 3Y10.9%
EPS Next 5Y14.3%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
Revenue Next Year1.41%
Revenue Next 2Y5.59%
Revenue Next 3Y6.98%
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%
BLOCK INC / XYZ FAQ
Can you provide the ChartMill fundamental rating for BLOCK INC?
ChartMill assigns a fundamental rating of 5 / 10 to XYZ.
What is the valuation status for XYZ stock?
ChartMill assigns a valuation rating of 2 / 10 to BLOCK INC (XYZ). This can be considered as Overvalued.
How profitable is BLOCK INC (XYZ) stock?
BLOCK INC (XYZ) has a profitability rating of 6 / 10.
Can you provide the financial health for XYZ stock?
The financial health rating of BLOCK INC (XYZ) is 5 / 10.
What is the earnings growth outlook for BLOCK INC?
The Earnings per Share (EPS) of BLOCK INC (XYZ) is expected to decline by -22.61% in the next year.