BLOCK INC (XYZ) Stock Fundamental Analysis
NYSE:XYZ - New York Stock Exchange, Inc. - US8522341036 - Common Stock - Currency: USD
Taking everything into account, XYZ scores 5 out of 10 in our fundamental rating. XYZ was compared to 101 industry peers in the Financial Services industry. XYZ has an average financial health and profitability rating. 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.
Each year in the past 5 years XYZ had a positive operating cash flow.
1.2 Ratios
XYZ has a Return On Assets of 7.18%. This is amongst the best in the industry. XYZ outperforms 86.14% of its industry peers.
Looking at the Return On Equity, with a value of 12.18%, XYZ is in the better half of the industry, outperforming 61.39% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.05%, XYZ is doing good in the industry, outperforming 70.30% 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 53.47% of its industry peers.
XYZ's Profit Margin has improved in the last couple of years.
XYZ has a Operating Margin of 7.40%. This is in the lower half of the industry: XYZ underperforms 64.36% of its industry peers.
In the last couple of years the Operating Margin of XYZ has grown nicely.
With a Gross Margin value of 37.95%, XYZ perfoms like the industry average, outperforming 57.43% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYZ 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
An Altman-Z score of 2.70 indicates that XYZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.70, XYZ belongs to the top of the industry, outperforming 85.15% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 4.78, XYZ is doing good in the industry, outperforming 67.33% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that XYZ is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, XYZ is doing good in the industry, outperforming 63.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.61
WACC8.28%
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.
With a decent Current ratio value of 2.27, XYZ is doing good in the industry, outperforming 79.21% of the companies in the same industry.
XYZ has a Quick Ratio of 2.26. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
XYZ has a Quick ratio of 2.26. This is amongst the best in the industry. XYZ outperforms 80.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% over the past year.
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.
The Revenue has been growing slightly by 4.60% 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)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.
XYZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
EPS Next Y-11.29%
EPS Next 2Y6.14%
EPS Next 3Y12.63%
EPS Next 5Y22.41%
Revenue Next Year3.22%
Revenue Next 2Y6.62%
Revenue Next 3Y6.97%
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
A Price/Earnings ratio of 18.03 indicates a rather expensive valuation of XYZ.
XYZ's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. XYZ is valued slightly cheaper when compared to this.
XYZ is valuated correctly with a Price/Forward Earnings ratio of 14.62.
XYZ's Price/Forward Earnings ratio is in line with the industry average.
XYZ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XYZ.
XYZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.54 | ||
| EV/EBITDA | 15.1 |
4.3 Compensation for Growth
XYZ's earnings are expected to grow with 12.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y6.14%
EPS Next 3Y12.63%
5. Dividend
5.1 Amount
XYZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:XYZ (5/21/2025, 1:30:08 PM)
55.52
-1.82 (-3.17%)
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 Change7.37%
Market Cap34.18B
Analysts81.6
Price Target68.54 (23.45%)
Short Float %2.83%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
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)-28%
PT rev (3m)-34.35%
EPS NQ rev (1m)-25.61%
EPS NQ rev (3m)-32.91%
EPS NY rev (1m)-26.54%
EPS NY rev (3m)-34.51%
Revenue NQ rev (1m)-3.84%
Revenue NQ rev (3m)-7.35%
Revenue NY rev (1m)-4.32%
Revenue NY rev (3m)-7.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.03 | ||
| Fwd PE | 14.62 | ||
| P/S | 1.43 | ||
| P/FCF | 28.54 | ||
| P/OCF | 25.29 | ||
| P/B | 1.59 | ||
| P/tB | 3.99 | ||
| EV/EBITDA | 15.1 |
EPS(TTM)3.08
EY5.55%
EPS(NY)3.8
Fwd EY6.84%
FCF(TTM)1.95
FCFY3.5%
OCF(TTM)2.2
OCFY3.95%
SpS38.88
BVpS34.87
TBVpS13.93
PEG (NY)N/A
PEG (5Y)0.54
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 | 2.7 |
F-Score7
WACC8.28%
ROIC/WACC0.61
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 Year3.22%
Revenue Next 2Y6.62%
Revenue Next 3Y6.97%
Revenue Next 5Y10.16%
EBIT growth 1Y162.01%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year201.23%
EBIT Next 3Y65.74%
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%