BLOCK INC (XYZ) Stock Fundamental Analysis
NYSE:XYZ - US8522341036 - Common Stock
79.64 USD
-1.14 (-1.41%)
79.8 USD
+0.16 (+0.2%)
We assign a fundamental rating of 5 out of 10 to XYZ. XYZ was compared to 100 industry peers in the Financial Services industry. Both the profitability and the financial health of XYZ get a neutral evaluation. Nothing too spectacular is happening here. XYZ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
XYZ had positive earnings in the past year.
In the past year XYZ had a positive cash flow from operations.
XYZ had positive earnings in 4 of the past 5 years.
Each year in the past 5 years XYZ had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.03%, XYZ belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
XYZ's Return On Equity of 13.35% is fine compared to the rest of the industry. XYZ outperforms 70.00% of its industry peers.
With a decent Return On Invested Capital value of 6.05%, XYZ is doing good in the industry, outperforming 71.00% 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
With a Profit Margin value of 12.41%, XYZ perfoms like the industry average, outperforming 59.00% 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 42.00% of the companies in the same industry.
In the last couple of years the Operating Margin of XYZ has grown nicely.
XYZ has a Gross Margin (39.38%) which is comparable to the rest of the industry.
XYZ's Gross Margin has declined in the last couple of years.
| 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
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.
The number of shares outstanding for XYZ has been increased compared to 5 years ago.
XYZ has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.27 indicates that XYZ is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.27, XYZ belongs to the best of the industry, outperforming 83.00% of the companies in the same industry.
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 67.00% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that XYZ is not too dependend on debt financing.
The Debt to Equity ratio of XYZ (0.19) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.73
WACC8.28%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYZ should not have too much problems paying its short term obligations.
XYZ has a Current ratio of 1.96. This is in the better half of the industry: XYZ outperforms 77.00% 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 78.00% 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
Looking at the last year, XYZ shows a small growth in Revenue. The Revenue has grown by 1.41% in the last year.
XYZ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
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-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue Next Year1.06%
Revenue Next 2Y5.4%
Revenue Next 3Y6.43%
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
XYZ is valuated quite expensively with a Price/Earnings ratio of 28.75.
Compared to the rest of the industry, the Price/Earnings ratio of XYZ indicates a slightly more expensive valuation: XYZ is more expensive than 65.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, XYZ is valued at the same level.
XYZ is valuated rather expensively with a Price/Forward Earnings ratio of 21.19.
Based on the Price/Forward Earnings ratio, XYZ is valued a bit more expensive than the industry average as 62.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.72. XYZ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.75 | ||
| Fwd PE | 21.19 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.82 | ||
| EV/EBITDA | 19.84 |
4.3 Compensation for Growth
The decent profitability rating of XYZ 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)0.86
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 |
79.64
-1.14 (-1.41%)
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 Change6.8%
Market Cap48.55B
Analysts80
Price Target86.21 (8.25%)
Short Float %4.48%
Short Ratio2.11
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)17.85%
PT rev (3m)25.79%
EPS NQ rev (1m)-3.96%
EPS NQ rev (3m)-38.23%
EPS NY rev (1m)-2.88%
EPS NY rev (3m)-11.12%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-1.27%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.75 | ||
| Fwd PE | 21.19 | ||
| P/S | 2.04 | ||
| P/FCF | 45.82 | ||
| P/OCF | 40.25 | ||
| P/B | 2.19 | ||
| P/tB | 5.41 | ||
| EV/EBITDA | 19.84 |
EPS(TTM)2.77
EY3.48%
EPS(NY)3.76
Fwd EY4.72%
FCF(TTM)1.74
FCFY2.18%
OCF(TTM)1.98
OCFY2.48%
SpS39.1
BVpS36.35
TBVpS14.72
PEG (NY)N/A
PEG (5Y)0.86
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 | 3.27 |
F-Score8
WACC8.28%
ROIC/WACC0.73
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 Year1.06%
Revenue Next 2Y5.4%
Revenue Next 3Y6.43%
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%