BLOCK INC (XYZ) Stock Fundamental Analysis
NYSE:XYZ - New York Stock Exchange, Inc. - US8522341036 - Common Stock - Currency: USD
XYZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. XYZ has only an average score on both its financial health and profitability. XYZ shows excellent growth, but is valued quite expensive already. This makes XYZ very considerable for growth investing!
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.
Of the past 5 years XYZ 4 years were profitable.
In the past 5 years XYZ always reported a positive cash flow from operatings.
1.2 Ratios
XYZ has a Return On Assets of 7.18%. This is amongst the best in the industry. XYZ outperforms 85.86% of its industry peers.
The Return On Equity of XYZ (12.18%) is better than 61.62% of its industry peers.
With a decent Return On Invested Capital value of 5.05%, XYZ is doing good in the industry, outperforming 64.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.18% | ||
| ROIC | 5.05% |
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 of 10.92%. This is comparable to the rest of the industry: XYZ outperforms 52.53% of its industry peers.
XYZ's Profit Margin has improved in the last couple of years.
The Operating Margin of XYZ (7.40%) is worse than 63.64% of its industry peers.
In the last couple of years the Operating Margin of XYZ has grown nicely.
XYZ has a Gross Margin (37.95%) 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 | 7.4% | ||
| PM (TTM) | 10.92% | ||
| GM | 37.95% |
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
XYZ 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 XYZ has been increased compared to 1 year ago.
Compared to 5 years ago, XYZ has more shares outstanding
XYZ has a worse debt/assets ratio than last year.
2.2 Solvency
XYZ has an Altman-Z score of 2.88. This is not the best score and indicates that XYZ is in the grey zone with still only limited risk for bankruptcy at the moment.
XYZ has a better Altman-Z score (2.88) than 83.84% of its industry peers.
The Debt to FCF ratio of XYZ is 4.78, which is a neutral value as it means it would take XYZ, 4.78 years of fcf income to pay off all of its debts.
XYZ's Debt to FCF ratio of 4.78 is fine compared to the rest of the industry. XYZ outperforms 69.70% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that XYZ is not too dependend on debt financing.
XYZ's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. XYZ outperforms 64.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.6
WACC8.36%
2.3 Liquidity
XYZ has a Current Ratio of 2.27. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
XYZ has a Current ratio of 2.27. This is in the better half of the industry: XYZ outperforms 78.79% of its industry peers.
A Quick Ratio of 2.26 indicates that XYZ has no problem at all paying its short term obligations.
The Quick ratio of XYZ (2.26) is better than 79.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
XYZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.50%, which is quite impressive.
Measured over the past years, XYZ shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.32% on average per year.
XYZ shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
XYZ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
EPS 1Y (TTM)37.5%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-34.12%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-3.11%
3.2 Future
Based on estimates for the next years, XYZ will show a very strong growth in Earnings Per Share. The EPS will grow by 22.41% on average per year.
Based on estimates for the next years, XYZ will show a quite strong growth in Revenue. The Revenue will grow by 10.16% on average per year.
EPS Next Y-11.29%
EPS Next 2Y6.14%
EPS Next 3Y12.63%
EPS Next 5Y22.41%
Revenue Next Year2.69%
Revenue Next 2Y6.21%
Revenue Next 3Y6.41%
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
With a Price/Earnings ratio of 20.80, XYZ is valued on the expensive side.
Based on the Price/Earnings ratio, XYZ is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.55, XYZ is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.87, the valuation of XYZ can be described as correct.
62.63% of the companies in the same industry are cheaper than XYZ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.40. XYZ is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYZ is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XYZ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.93 | ||
| EV/EBITDA | 17.16 |
4.3 Compensation for Growth
A more expensive valuation may be justified as XYZ's earnings are expected to grow with 12.63% in the coming years.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y6.14%
EPS Next 3Y12.63%
5. Dividend
5.1 Amount
No dividends for XYZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.06
-0.42 (-0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners71.38%
Inst Owner ChangeN/A
Ins Owners1.02%
Ins Owner Change6.07%
Market Cap39.44B
Analysts80
Price Target69.23 (8.07%)
Short Float %3.15%
Short Ratio1.61
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)-27.92%
Min EPS beat(2)-36.25%
Max EPS beat(2)-19.6%
EPS beat(4)1
Avg EPS beat(4)-11.63%
Min EPS beat(4)-36.25%
Max EPS beat(4)9.51%
EPS beat(8)4
Avg EPS beat(8)-3.73%
EPS beat(12)7
Avg EPS beat(12)3.49%
EPS beat(16)9
Avg EPS beat(16)9.64%
Revenue beat(2)0
Avg Revenue beat(2)-6.45%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-5.07%
Revenue beat(4)0
Avg Revenue beat(4)-5.25%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-2.89%
Revenue beat(8)4
Avg Revenue beat(8)-1.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.2%
Revenue beat(16)7
Avg Revenue beat(16)-2.02%
PT rev (1m)1.01%
PT rev (3m)-30.81%
EPS NQ rev (1m)-12.72%
EPS NQ rev (3m)-34.07%
EPS NY rev (1m)-26.54%
EPS NY rev (3m)-34.47%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-5.81%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)-5.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.8 | ||
| Fwd PE | 16.87 | ||
| P/S | 1.65 | ||
| P/FCF | 32.93 | ||
| P/OCF | 29.18 | ||
| P/B | 1.84 | ||
| P/tB | 4.6 | ||
| EV/EBITDA | 17.16 |
EPS(TTM)3.08
EY4.81%
EPS(NY)3.8
Fwd EY5.93%
FCF(TTM)1.95
FCFY3.04%
OCF(TTM)2.2
OCFY3.43%
SpS38.88
BVpS34.87
TBVpS13.93
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.18% | ||
| ROCE | 6.39% | ||
| ROIC | 5.05% | ||
| ROICexc | 7.07% | ||
| ROICexgc | 20.28% | ||
| OM | 7.4% | ||
| PM (TTM) | 10.92% | ||
| GM | 37.95% | ||
| FCFM | 5% |
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-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 41.87% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 8.75 | ||
| Cash Conversion | 63.22% | ||
| Profit Quality | 45.79% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 2.88 |
F-Score7
WACC8.36%
ROIC/WACC0.6
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)37.5%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-34.12%
EPS Next Y-11.29%
EPS Next 2Y6.14%
EPS Next 3Y12.63%
EPS Next 5Y22.41%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-3.11%
Revenue Next Year2.69%
Revenue Next 2Y6.21%
Revenue Next 3Y6.41%
Revenue Next 5Y10.16%
EBIT growth 1Y162.01%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year177.21%
EBIT Next 3Y59.24%
EBIT Next 5Y22.69%
FCF growth 1Y1415.77%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y460.98%
OCF growth 3Y26.28%
OCF growth 5Y29.67%