BLOCK INC (SQ)
US8522341036 - Common Stock
Overall SQ gets a fundamental rating of 5 out of 10. We evaluated SQ against 99 industry peers in the Financial Services industry. SQ has only an average score on both its financial health and profitability. SQ shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
SQ had positive earnings in the past year.
SQ had a positive operating cash flow in the past year.
SQ had positive earnings in 4 of the past 5 years.
In the past 5 years SQ always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.11%, SQ is doing good in the industry, outperforming 64.65% of the companies in the same industry.
SQ has a Return On Equity (5.67%) which is comparable to the rest of the industry.
The Return On Invested Capital of SQ (4.42%) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROIC | 4.42% |
ROA(3y)-0.2%
ROA(5y)1.96%
ROE(3y)0.66%
ROE(5y)6.36%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SQ (4.73%) is worse than 62.63% of its industry peers.
SQ's Profit Margin has declined in the last couple of years.
SQ has a worse Operating Margin (6.18%) than 63.64% of its industry peers.
In the last couple of years the Operating Margin of SQ has grown nicely.
SQ's Gross Margin of 36.06% is in line compared to the rest of the industry. SQ outperforms 53.54% of its industry peers.
SQ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.18% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.06% |
OM growth 3Y1.34%
OM growth 5Y2.41%
PM growth 3Y-72.91%
PM growth 5YN/A
GM growth 3Y5.97%
GM growth 5Y-2.83%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SQ is destroying value.
Compared to 1 year ago, SQ has more shares outstanding
Compared to 5 years ago, SQ has more shares outstanding
SQ has a worse debt/assets ratio than last year.
2.2 Solvency
SQ has an Altman-Z score of 3.12. This indicates that SQ is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.12, SQ belongs to the best of the industry, outperforming 83.84% of the companies in the same industry.
The Debt to FCF ratio of SQ is 9.86, which is on the high side as it means it would take SQ, 9.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SQ (9.86) is comparable to the rest of the industry.
SQ has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
SQ's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. SQ outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.51
WACC8.61%
2.3 Liquidity
A Current Ratio of 2.07 indicates that SQ has no problem at all paying its short term obligations.
SQ has a Current ratio of 2.07. This is in the better half of the industry: SQ outperforms 74.75% of its industry peers.
A Quick Ratio of 2.06 indicates that SQ has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.06, SQ is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 99.36% over the past year.
The Earnings Per Share has been growing by 31.23% on average over the past years. This is a very strong growth
The Revenue has grown by 14.75% in the past year. This is quite good.
The Revenue has been growing by 46.05% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)99.36%
EPS 3Y29.72%
EPS 5Y31.23%
EPS Q2Q%60%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%6.38%
3.2 Future
SQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.31% yearly.
SQ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.81% yearly.
EPS Next Y102.87%
EPS Next 2Y61.85%
EPS Next 3Y47.31%
EPS Next 5Y34.31%
Revenue Next Year11.42%
Revenue Next 2Y11.34%
Revenue Next 3Y11.39%
Revenue Next 5Y11.81%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
SQ is valuated quite expensively with a Price/Earnings ratio of 29.63.
Compared to the rest of the industry, the Price/Earnings ratio of SQ indicates a slightly more expensive valuation: SQ is more expensive than 62.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, SQ is valued at the same level.
The Price/Forward Earnings ratio is 19.65, which indicates a rather expensive current valuation of SQ.
SQ's Price/Forward Earnings is on the same level as the industry average.
SQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.63 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SQ.
Based on the Price/Free Cash Flow ratio, SQ is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.67 | ||
| EV/EBITDA | 27.61 |
4.3 Compensation for Growth
SQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SQ's earnings are expected to grow with 47.31% in the coming years.
PEG (NY)0.29
PEG (5Y)0.95
EPS Next 2Y61.85%
EPS Next 3Y47.31%
5. Dividend
5.1 Amount
No dividends for SQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BLOCK INC
NYSE:SQ (1/3/2025, 10:08:54 PM)
After market: 92.5 +0.34 (+0.37%)92.16
+5.41 (+6.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners69.84%
Inst Owner Change-0.32%
Ins Owners0.57%
Ins Owner Change-2.06%
Market Cap57.12B
Analysts78.93
Price Target100.49 (9.04%)
Short Float %2.14%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.63%
Min EPS beat(2)-2.11%
Max EPS beat(2)7.38%
EPS beat(4)2
Avg EPS beat(4)-1.39%
Min EPS beat(4)-25.8%
Max EPS beat(4)14.99%
EPS beat(8)5
Avg EPS beat(8)-0.13%
EPS beat(12)8
Avg EPS beat(12)6.56%
EPS beat(16)11
Avg EPS beat(16)22.13%
Revenue beat(2)0
Avg Revenue beat(2)-5.9%
Min Revenue beat(2)-7.02%
Max Revenue beat(2)-4.77%
Revenue beat(4)0
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-7.02%
Max Revenue beat(4)-0.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)3
Avg Revenue beat(12)-1.54%
Revenue beat(16)4
Avg Revenue beat(16)-0.05%
PT rev (1m)11%
PT rev (3m)13.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.63 | ||
| Fwd PE | 19.65 | ||
| P/S | 2.39 | ||
| P/FCF | 79.67 | ||
| P/OCF | 63.78 | ||
| P/B | 2.87 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 27.61 |
EPS(TTM)3.11
EY3.37%
EPS(NY)4.69
Fwd EY5.09%
FCF(TTM)1.16
FCFY1.26%
OCF(TTM)1.45
OCFY1.57%
SpS38.5
BVpS32.14
TBVpS10.11
PEG (NY)0.29
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROCE | 5.6% | ||
| ROIC | 4.42% | ||
| ROICexc | 6.65% | ||
| ROICexgc | 30.21% | ||
| OM | 6.18% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.06% | ||
| FCFM | 3% |
ROA(3y)-0.2%
ROA(5y)1.96%
ROE(3y)0.66%
ROE(5y)6.36%
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 3Y-0.41%
ROICexcg growth 5Y5.31%
ROICexc growth 3Y-32.39%
ROICexc growth 5Y-14.18%
OM growth 3Y1.34%
OM growth 5Y2.41%
PM growth 3Y-72.91%
PM growth 5YN/A
GM growth 3Y5.97%
GM growth 5Y-2.83%
F-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 45.51% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 10.59 | ||
| Cash Conversion | 47.98% | ||
| Profit Quality | 63.5% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 3.12 |
F-Score7
WACC8.61%
ROIC/WACC0.51
Cap/Depr(3y)104.3%
Cap/Depr(5y)111.99%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)99.36%
EPS 3Y29.72%
EPS 5Y31.23%
EPS Q2Q%60%
EPS Next Y102.87%
EPS Next 2Y61.85%
EPS Next 3Y47.31%
EPS Next 5Y34.31%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%6.38%
Revenue Next Year11.42%
Revenue Next 2Y11.34%
Revenue Next 3Y11.39%
Revenue Next 5Y11.81%
EBIT growth 1Y302.85%
EBIT growth 3Y33.91%
EBIT growth 5Y49.57%
EBIT Next Year1801.34%
EBIT Next 3Y203.52%
EBIT Next 5Y109.97%
FCF growth 1Y329.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y175.67%
OCF growth 3Y-35.8%
OCF growth 5Y-19.31%