BLOCK INC (SQ) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:SQ • US8522341036

86.96 USD
+0.58 (+0.67%)
At close: Jan 17, 2025
87.17 USD
+0.21 (+0.24%)
After Hours: 1/17/2025, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall SQ gets a fundamental rating of 5 out of 10. We evaluated SQ against 97 industry peers in the Financial Services industry. SQ has an average financial health and profitability rating. SQ is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year SQ was profitable.
  • 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.
SQ Yearly Net Income VS EBIT VS OCF VS FCFSQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M 800M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.11%, SQ is in the better half of the industry, outperforming 65.69% of the companies in the same industry.
  • With a Return On Equity value of 5.67%, SQ perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
  • The Return On Invested Capital of SQ (4.42%) is better than 64.71% of its industry peers.
Industry RankSector 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
SQ Yearly ROA, ROE, ROICSQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20

1.3 Margins

  • SQ has a Profit Margin of 4.73%. This is in the lower half of the industry: SQ underperforms 60.78% 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 61.76% of its industry peers.
  • SQ's Operating Margin has improved in the last couple of years.
  • SQ has a Gross Margin of 36.06%. This is comparable to the rest of the industry: SQ outperforms 53.92% of its industry peers.
  • In the last couple of years the Gross Margin of SQ has declined.
Industry RankSector 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%
SQ Yearly Profit, Operating, Gross MarginsSQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • SQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, SQ has more shares outstanding
  • Compared to 1 year ago, SQ has a worse debt to assets ratio.
SQ Yearly Shares OutstandingSQ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
SQ Yearly Total Debt VS Total AssetsSQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

  • SQ has an Altman-Z score of 3.13. This indicates that SQ is financially healthy and has little risk of bankruptcy at the moment.
  • SQ has a better Altman-Z score (3.13) than 84.31% of its industry peers.
  • SQ has a debt to FCF ratio of 9.86. This is a negative value and a sign of low solvency as SQ would need 9.86 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 9.86, SQ is in line with its industry, outperforming 50.98% of the companies in the same industry.
  • SQ has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.30, SQ is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 9.86
Altman-Z 3.13
ROIC/WACC0.51
WACC8.63%
SQ Yearly LT Debt VS Equity VS FCFSQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

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 better Current ratio (2.07) than 75.49% of its industry peers.
  • SQ has a Quick Ratio of 2.06. This indicates that SQ is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of SQ (2.06) is better than 76.47% of its industry peers.
Industry RankSector Rank
Current Ratio 2.07
Quick Ratio 2.06
SQ Yearly Current Assets VS Current LiabilitesSQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 99.36% over the past year.
  • Measured over the past years, SQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.23% on average per year.
  • SQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.75%.
  • 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

  • Based on estimates for the next years, SQ will show a very strong growth in Earnings Per Share. The EPS will grow by 34.31% on average per year.
  • The Revenue is expected to grow by 11.81% on average over the next years. This is quite good.
EPS Next Y102.87%
EPS Next 2Y61.85%
EPS Next 3Y47.31%
EPS Next 5Y34.31%
Revenue Next Year11.42%
Revenue Next 2Y11.39%
Revenue Next 3Y11.45%
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.
SQ Yearly Revenue VS EstimatesSQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B 40B 50B
SQ Yearly EPS VS EstimatesSQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 4 6 8 10

More info and screens

Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.96, the valuation of SQ can be described as expensive.
  • Based on the Price/Earnings ratio, SQ is valued a bit more expensive than 60.78% of the companies in the same industry.
  • SQ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 18.54 indicates a rather expensive valuation of SQ.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SQ.
  • When comparing the Price/Forward Earnings ratio of SQ to the average of the S&P500 Index (27.78), we can say SQ is valued slightly cheaper.
Industry RankSector Rank
PE 27.96
Fwd PE 18.54
SQ Price Earnings VS Forward Price EarningsSQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • SQ's Enterprise Value to EBITDA ratio is in line with the industry average.
  • SQ's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 75.17
EV/EBITDA 27.68
SQ Per share dataSQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • SQ's earnings are expected to grow with 47.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)0.9
EPS Next 2Y61.85%
EPS Next 3Y47.31%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for SQ!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

BLOCK INC

NYSE:SQ (1/17/2025, 8:04:00 PM)

After market: 87.17 +0.21 (+0.24%)

86.96

+0.58 (+0.67%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-07
Earnings (Next)02-20
Inst OwnersN/A
Inst Owner Change-2.85%
Ins OwnersN/A
Ins Owner Change0%
Market Cap53.90B
Revenue(TTM)23.86B
Net Income(TTM)1.13B
Analysts80.36
Price Target100.49 (15.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)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)6.1%
PT rev (3m)13.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
Industry RankSector Rank
PE 27.96
Fwd PE 18.54
P/S 2.26
P/FCF 75.17
P/OCF 60.18
P/B 2.71
P/tB 8.6
EV/EBITDA 27.68
EPS(TTM)3.11
EY3.58%
EPS(NY)4.69
Fwd EY5.39%
FCF(TTM)1.16
FCFY1.33%
OCF(TTM)1.45
OCFY1.66%
SpS38.5
BVpS32.14
TBVpS10.11
PEG (NY)0.27
PEG (5Y)0.9
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3Y-0.41%
ROICexgc 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 RankSector 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 3.13
F-Score7
WACC8.63%
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 2Y11.39%
Revenue Next 3Y11.45%
Revenue Next 5Y11.81%
EBIT growth 1Y302.85%
EBIT growth 3Y33.91%
EBIT growth 5Y49.57%
EBIT Next Year1780.32%
EBIT Next 3Y204.1%
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%

BLOCK INC / SQ FAQ

What is the ChartMill fundamental rating of BLOCK INC (SQ) stock?

ChartMill assigns a fundamental rating of 5 / 10 to SQ.


Can you provide the valuation status for BLOCK INC?

ChartMill assigns a valuation rating of 3 / 10 to BLOCK INC (SQ). This can be considered as Overvalued.


What is the profitability of SQ stock?

BLOCK INC (SQ) has a profitability rating of 4 / 10.


What is the valuation of BLOCK INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for BLOCK INC (SQ) is 27.96 and the Price/Book (PB) ratio is 2.71.