BLOCK INC (XYZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYZ - US8522341036 - Common Stock
61.11 USD
-1.08 (-1.74%)
61.07 USD
-0.04 (-0.07%)
XYZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. XYZ has an average financial health and profitability rating. XYZ is valied quite expensively at the moment, while 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.
In the past 5 years XYZ always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.00%, XYZ belongs to the best of the industry, outperforming 84.69% of the companies in the same industry.
XYZ's Return On Equity of 13.93% is fine compared to the rest of the industry. XYZ outperforms 73.47% of its industry peers.
XYZ has a better Return On Invested Capital (6.27%) than 70.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 13.93% | ||
| ROIC | 6.27% |
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 (13.08%) 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 of 9.63%. This is in the lower half of the industry: XYZ underperforms 61.22% of its industry peers.
XYZ's Operating Margin has improved in the last couple of years.
The Gross Margin of XYZ (40.87%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of XYZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.63% | ||
| PM (TTM) | 13.08% | ||
| GM | 40.87% |
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.
Compared to 1 year ago, XYZ has more shares outstanding
Compared to 5 years ago, XYZ has more shares outstanding
Compared to 1 year ago, XYZ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.66 indicates that XYZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
XYZ has a better Altman-Z score (2.66) than 82.65% of its industry peers.
XYZ has a debt to FCF ratio of 4.25. This is a neutral value as XYZ would need 4.25 years to pay back of all of its debts.
The Debt to FCF ratio of XYZ (4.25) is better than 68.37% 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 60.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.78
WACC7.99%
2.3 Liquidity
XYZ has a Current Ratio of 2.18. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.18, XYZ is doing good in the industry, outperforming 77.55% of the companies in the same industry.
XYZ has a Quick Ratio of 2.17. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
XYZ's Quick ratio of 2.17 is fine compared to the rest of the industry. XYZ outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
The earnings per share for XYZ have decreased strongly by -21.86% in the last year.
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 0.47% in the past year.
The Revenue has been growing by 38.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-21.86%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-38.64%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
3.2 Future
The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
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-21.7%
EPS Next 2Y4.94%
EPS Next 3Y11.79%
EPS Next 5Y14.3%
Revenue Next Year1.35%
Revenue Next 2Y5.55%
Revenue Next 3Y6.48%
Revenue Next 5Y10.16%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.15, the valuation of XYZ can be described as expensive.
XYZ's Price/Earnings ratio is a bit more expensive when compared to the industry. XYZ is more expensive than 66.33% 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 26.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.47, the valuation of XYZ can be described as correct.
XYZ's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, XYZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XYZ.
The rest of the industry has a similar Price/Free Cash Flow ratio as XYZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 13.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y4.94%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
No dividends for XYZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.11
-1.08 (-1.74%)
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-3.36%
Market Cap37.13B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts77.14
Price Target85.74 (40.3%)
Short Float %3.7%
Short Ratio2.74
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)-15.41%
Min EPS beat(2)-19.86%
Max EPS beat(2)-10.95%
EPS beat(4)0
Avg EPS beat(4)-21.66%
Min EPS beat(4)-36.25%
Max EPS beat(4)-10.95%
EPS beat(8)2
Avg EPS beat(8)-10.55%
EPS beat(12)5
Avg EPS beat(12)-5.99%
EPS beat(16)8
Avg EPS beat(16)1.09%
Revenue beat(2)0
Avg Revenue beat(2)-4.55%
Min Revenue beat(2)-5%
Max Revenue beat(2)-4.09%
Revenue beat(4)0
Avg Revenue beat(4)-5.5%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-4.09%
Revenue beat(8)2
Avg Revenue beat(8)-3.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.95%
Revenue beat(16)7
Avg Revenue beat(16)-1.07%
PT rev (1m)-4.43%
PT rev (3m)-0.55%
EPS NQ rev (1m)-8.36%
EPS NQ rev (3m)-8.45%
EPS NY rev (1m)1.19%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-3.21%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 16.47 | ||
| P/S | 1.55 | ||
| P/FCF | 20.27 | ||
| P/OCF | 18.83 | ||
| P/B | 1.65 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 13.61 |
EPS(TTM)2.43
EY3.98%
EPS(NY)3.71
Fwd EY6.07%
FCF(TTM)3.01
FCFY4.93%
OCF(TTM)3.25
OCFY5.31%
SpS39.45
BVpS37.04
TBVpS15.43
PEG (NY)N/A
PEG (5Y)0.75
Graham Number45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 13.93% | ||
| ROCE | 7.94% | ||
| ROIC | 6.27% | ||
| ROICexc | 8.99% | ||
| ROICexgc | 25.48% | ||
| OM | 9.63% | ||
| PM (TTM) | 13.08% | ||
| GM | 40.87% | ||
| FCFM | 7.64% |
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-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 38.87% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 9.59 | ||
| Cash Conversion | 73.87% | ||
| Profit Quality | 58.41% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 2.66 |
F-Score7
WACC7.99%
ROIC/WACC0.78
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)-21.86%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-38.64%
EPS Next Y-21.7%
EPS Next 2Y4.94%
EPS Next 3Y11.79%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year1.35%
Revenue Next 2Y5.55%
Revenue Next 3Y6.48%
Revenue Next 5Y10.16%
EBIT growth 1Y56.58%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year187.09%
EBIT Next 3Y61.68%
EBIT Next 5Y22.69%
FCF growth 1Y130.2%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y108.9%
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 5 / 10.
Can you provide the financial health for XYZ stock?
The financial health rating of BLOCK INC (XYZ) is 6 / 10.
What is the earnings growth outlook for BLOCK INC?
The Earnings per Share (EPS) of BLOCK INC (XYZ) is expected to decline by -21.7% in the next year.