BLOCK INC (XYZ) Stock Fundamental Analysis
USA - NYSE:XYZ - US8522341036 - Common Stock
77.03 USD
-0.34 (-0.44%)
76.9 USD
-0.13 (-0.17%)
Overall XYZ gets a fundamental rating of 5 out of 10. We evaluated XYZ against 101 industry peers in the Financial Services industry. XYZ has only an average score on both its financial health and profitability. 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.
XYZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XYZ has a Return On Assets of 8.03%. This is amongst the best in the industry. XYZ outperforms 85.15% of its industry peers.
The Return On Equity of XYZ (13.35%) is better than 70.30% of its industry peers.
The Return On Invested Capital of XYZ (6.05%) is better than 69.31% of its industry peers.
| 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
With a Profit Margin value of 12.41%, XYZ perfoms like the industry average, outperforming 58.42% of the companies in the same industry.
In the last couple of years the Profit Margin of XYZ has grown nicely.
Looking at the Operating Margin, with a value of 8.60%, XYZ is in line with its industry, outperforming 40.59% of the companies in the same industry.
XYZ's Operating Margin has improved in the last couple of years.
XYZ's Gross Margin of 39.38% is in line compared to the rest of the industry. XYZ outperforms 54.46% of 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
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.
XYZ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for XYZ is higher compared to a year ago.
2.2 Solvency
XYZ has an Altman-Z score of 3.18. This indicates that XYZ is financially healthy and has little risk of bankruptcy at the moment.
XYZ has a Altman-Z score of 3.18. This is amongst the best in the industry. XYZ outperforms 83.17% of its industry peers.
The Debt to FCF ratio of XYZ is 5.49, which is a neutral value as it means it would take XYZ, 5.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.49, XYZ is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
XYZ has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
XYZ has a Debt to Equity ratio of 0.19. This is in the better half of the industry: XYZ outperforms 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.74
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYZ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.96, XYZ is in the better half of the industry, outperforming 77.23% of the companies in the same industry.
XYZ has a Quick Ratio of 1.94. This is a normal value and indicates that XYZ is financially healthy and should not expect problems in meeting its short term obligations.
XYZ has a better Quick ratio (1.94) than 78.22% 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%.
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.
Looking at the last year, XYZ shows a small growth in Revenue. The Revenue has grown by 1.41% in the last year.
The Revenue has been growing by 38.62% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, XYZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.30% on average per year.
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue Next Year1.32%
Revenue Next 2Y5.6%
Revenue Next 3Y6.81%
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
The Price/Earnings ratio is 27.81, which means the current valuation is very expensive for XYZ.
Based on the Price/Earnings ratio, XYZ is valued a bit more expensive than the industry average as 64.36% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.38, XYZ is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.50, the valuation of XYZ can be described as rather expensive.
60.40% of the companies in the same industry are cheaper than XYZ, based on the Price/Forward Earnings ratio.
XYZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.81 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
XYZ's Enterprise Value to EBITDA is on the same level as the industry average.
XYZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.32 | ||
| EV/EBITDA | 18.89 |
4.3 Compensation for Growth
XYZ has a very decent profitability rating, which may justify a higher PE ratio.
XYZ's earnings are expected to grow with 12.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y5.6%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
XYZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
77.03
-0.34 (-0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners70.56%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner Change5.46%
Market Cap46.96B
Analysts77.08
Price Target88.24 (14.55%)
Short Float %3.83%
Short Ratio1.85
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)14.96%
PT rev (3m)24.48%
EPS NQ rev (1m)-4.66%
EPS NQ rev (3m)-9.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.86%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.81 | ||
| Fwd PE | 20.5 | ||
| P/S | 1.97 | ||
| P/FCF | 44.32 | ||
| P/OCF | 38.93 | ||
| P/B | 2.12 | ||
| P/tB | 5.23 | ||
| EV/EBITDA | 18.89 |
EPS(TTM)2.77
EY3.6%
EPS(NY)3.76
Fwd EY4.88%
FCF(TTM)1.74
FCFY2.26%
OCF(TTM)1.98
OCFY2.57%
SpS39.1
BVpS36.35
TBVpS14.72
PEG (NY)N/A
PEG (5Y)0.83
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
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-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 | 3.18 |
F-Score8
WACC8.18%
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-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
Revenue Next Year1.32%
Revenue Next 2Y5.6%
Revenue Next 3Y6.81%
Revenue Next 5Y10.16%
EBIT growth 1Y82.02%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.76%
EBIT Next 3Y61.21%
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%