BLOCK INC (XYZ) Stock Fundamental Analysis
USA - NYSE:XYZ - US8522341036 - Common Stock
74.67 USD
-6.18 (-7.64%)
73.8 USD
-0.87 (-1.17%)
We assign a fundamental rating of 4 out of 10 to XYZ. XYZ was compared to 99 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 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.
XYZ had a positive operating cash flow in the past year.
Of the past 5 years XYZ 4 years were profitable.
XYZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XYZ's Return On Assets of 8.03% is amongst the best of the industry. XYZ outperforms 84.85% of its industry peers.
Looking at the Return On Equity, with a value of 13.35%, XYZ is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.05%, XYZ is in the better half of the industry, outperforming 68.69% 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
XYZ has a Profit Margin (12.41%) which is comparable to the rest of the industry.
XYZ's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 8.60%, XYZ is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of XYZ has grown nicely.
XYZ's Gross Margin of 39.38% is in line compared to the rest of the industry. XYZ outperforms 54.55% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for XYZ is higher compared to a year ago.
2.2 Solvency
XYZ has an Altman-Z score of 3.12. This indicates that XYZ is financially healthy and has little risk of bankruptcy at the moment.
XYZ has a Altman-Z score of 3.12. This is amongst the best in the industry. XYZ outperforms 83.84% 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 66.67% 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 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.75
WACC8.09%
2.3 Liquidity
XYZ has a Current Ratio of 1.96. This is a normal value and indicates that XYZ is financially healthy and should not expect problems in meeting its short term obligations.
XYZ's Current ratio of 1.96 is fine compared to the rest of the industry. XYZ outperforms 75.76% of its industry peers.
A Quick Ratio of 1.94 indicates that XYZ should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.94, XYZ is in the better half of the industry, outperforming 76.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The earnings per share for XYZ have decreased by -0.36% in the last 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 1.41% in the past 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
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.
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-22.07%
EPS Next 2Y4.63%
EPS Next 3Y11.47%
EPS Next 5Y14.3%
Revenue Next Year1.32%
Revenue Next 2Y5.59%
Revenue Next 3Y6.99%
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
The Price/Earnings ratio is 26.96, which means the current valuation is very expensive for XYZ.
Compared to the rest of the industry, the Price/Earnings ratio of XYZ indicates a slightly more expensive valuation: XYZ is more expensive than 63.64% of the companies listed in the same industry.
XYZ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.02.
With a Price/Forward Earnings ratio of 20.24, XYZ is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XYZ indicates a slightly more expensive valuation: XYZ is more expensive than 63.64% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of XYZ to the average of the S&P500 Index (22.57), we can say XYZ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.96 | ||
| Fwd PE | 20.24 |
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 | 42.96 | ||
| EV/EBITDA | 18.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y4.63%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
No dividends for XYZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.67
-6.18 (-7.64%)
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 Change4.54%
Market Cap45.52B
Analysts76.67
Price Target89.71 (20.14%)
Short Float %4.32%
Short Ratio2.15
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)3.35%
PT rev (3m)26.56%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-9.57%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-4.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.96 | ||
| Fwd PE | 20.24 | ||
| P/S | 1.91 | ||
| P/FCF | 42.96 | ||
| P/OCF | 37.74 | ||
| P/B | 2.05 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 18.3 |
EPS(TTM)2.77
EY3.71%
EPS(NY)3.69
Fwd EY4.94%
FCF(TTM)1.74
FCFY2.33%
OCF(TTM)1.98
OCFY2.65%
SpS39.1
BVpS36.35
TBVpS14.72
PEG (NY)N/A
PEG (5Y)0.81
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 | 3.12 |
F-Score8
WACC8.09%
ROIC/WACC0.75
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-22.07%
EPS Next 2Y4.63%
EPS Next 3Y11.47%
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 2Y5.59%
Revenue Next 3Y6.99%
Revenue Next 5Y10.16%
EBIT growth 1Y82.02%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year187.09%
EBIT Next 3Y61.68%
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%