BLOCK INC (SQ)
US8522341036 - Common Stock
Overall SQ gets a fundamental rating of 5 out of 10. We evaluated SQ against 100 industry peers in the Financial Services industry. Both the profitability and the financial health of SQ get a neutral evaluation. Nothing too spectacular is happening here. SQ shows excellent growth, but is valued quite expensive already.
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.
Each year in the past 5 years SQ had a positive operating cash flow.
1.2 Ratios
SQ has a Return On Assets of 3.11%. This is in the better half of the industry: SQ outperforms 67.00% of its industry peers.
SQ has a Return On Equity (5.67%) which is comparable to the rest of the industry.
SQ's Return On Invested Capital of 4.42% is fine compared to the rest of the industry. SQ outperforms 69.00% 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 60.00% of its industry peers.
SQ's Profit Margin has declined in the last couple of years.
SQ has a Operating Margin of 6.18%. This is in the lower half of the industry: SQ underperforms 65.00% 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 53.00% of its industry peers.
In the last couple of years the Gross Margin of SQ has declined.
| 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
SQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SQ has been increased compared to 1 year ago.
The number of shares outstanding for SQ has been increased compared to 5 years ago.
The debt/assets ratio for SQ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.24 indicates that SQ is not in any danger for bankruptcy at the moment.
SQ has a better Altman-Z score (3.24) than 86.00% of its industry peers.
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.
SQ has a Debt to FCF ratio of 9.86. This is comparable to the rest of the industry: SQ outperforms 52.00% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that SQ is not too dependend on debt financing.
SQ has a Debt to Equity ratio of 0.30. This is in the better half of the industry: SQ outperforms 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.52
WACC8.46%
2.3 Liquidity
SQ has a Current Ratio of 2.07. This indicates that SQ is financially healthy and has no problem in meeting its short term obligations.
SQ has a better Current ratio (2.07) than 75.00% 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 76.00% of its industry peers.
| 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.
SQ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.23% yearly.
SQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.75%.
Measured over the past years, SQ shows a very strong growth in Revenue. The Revenue has been growing by 46.05% on average per year.
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 32.32% on average per year.
Based on estimates for the next years, SQ will show a quite strong growth in Revenue. The Revenue will grow by 12.41% on average per year.
EPS Next Y106.25%
EPS Next 2Y61.91%
EPS Next 3Y48.05%
EPS Next 5Y32.32%
Revenue Next Year12.82%
Revenue Next 2Y11.88%
Revenue Next 3Y11.43%
Revenue Next 5Y12.41%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.24, the valuation of SQ can be described as expensive.
SQ's Price/Earnings ratio is a bit more expensive when compared to the industry. SQ is more expensive than 63.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. SQ is around the same levels.
Based on the Price/Forward Earnings ratio of 20.04, the valuation of SQ can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SQ is valued a bit more expensive than the industry average as 61.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.82. SQ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SQ is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, SQ is valued a bit more expensive than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.75 | ||
| EV/EBITDA | 29.37 |
4.3 Compensation for Growth
The 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 48.05% in the coming years.
PEG (NY)0.28
PEG (5Y)0.97
EPS Next 2Y61.91%
EPS Next 3Y48.05%
5. Dividend
5.1 Amount
SQ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BLOCK INC
NYSE:SQ (11/22/2024, 12:14:10 PM)
94.04
+1.34 (+1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap57.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 20.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.28
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.18% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)99.36%
EPS 3Y29.72%
EPS 5Y
EPS Q2Q%
EPS Next Y106.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.75%
Revenue growth 3Y32.14%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y