BLOCK INC (SQ)
US8522341036 - Common Stock
SQ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. SQ has an average financial health and profitability rating. SQ is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year SQ was profitable.
In the past year SQ had a positive cash flow from operations.
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
The Return On Assets of SQ (2.17%) is better than 60.78% of its industry peers.
The Return On Equity of SQ (4.23%) is comparable to the rest of the industry.
SQ's Return On Invested Capital of 3.51% is in line compared to the rest of the industry. SQ outperforms 55.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 4.23% | ||
| ROIC | 3.51% |
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
SQ has a Profit Margin of 3.47%. This is in the lower half of the industry: SQ underperforms 62.75% of its industry peers.
In the last couple of years the Profit Margin of SQ has declined.
With a Operating Margin value of 4.79%, SQ is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
SQ's Operating Margin has improved in the last couple of years.
SQ has a Gross Margin (35.11%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SQ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.79% | ||
| PM (TTM) | 3.47% | ||
| GM | 35.11% |
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.
Compared to 1 year ago, SQ has more shares outstanding
SQ has more shares outstanding than it did 5 years ago.
SQ has a better debt/assets ratio than last year.
2.2 Solvency
SQ has an Altman-Z score of 2.34. This is not the best score and indicates that SQ is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of SQ (2.34) is better than 81.37% of its industry peers.
The Debt to FCF ratio of SQ is 11.25, which is on the high side as it means it would take SQ, 11.25 years of fcf income to pay off all of its debts.
SQ has a Debt to FCF ratio of 11.25. This is comparable to the rest of the industry: SQ outperforms 51.96% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that SQ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, SQ is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 11.25 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.45
WACC7.73%
2.3 Liquidity
SQ has a Current Ratio of 1.82. This is a normal value and indicates that SQ is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.82, SQ is doing good in the industry, outperforming 72.55% of the companies in the same industry.
A Quick Ratio of 1.81 indicates that SQ should not have too much problems paying its short term obligations.
The Quick ratio of SQ (1.81) is better than 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 94.41% 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.
Looking at the last year, SQ shows a quite strong growth in Revenue. The Revenue has grown by 19.36% in the last year.
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)94.41%
EPS 3Y29.72%
EPS 5Y31.23%
EPS Q2Q%138.46%
Revenue 1Y (TTM)19.36%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%11.21%
3.2 Future
SQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.32% yearly.
SQ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.41% yearly.
EPS Next Y107.49%
EPS Next 2Y63.04%
EPS Next 3Y49.58%
EPS Next 5Y32.32%
Revenue Next Year13.09%
Revenue Next 2Y12.04%
Revenue Next 3Y11.44%
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 23.02, the valuation of SQ can be described as rather expensive.
SQ's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.52, SQ is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.45, the valuation of SQ can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as SQ.
SQ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
SQ's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQ indicates a slightly more expensive valuation: SQ is more expensive than 62.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.64 | ||
| EV/EBITDA | 23.47 |
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 49.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)0.74
EPS Next 2Y63.04%
EPS Next 3Y49.58%
5. Dividend
5.1 Amount
No dividends for SQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BLOCK INC
NYSE:SQ (9/13/2024, 8:04:01 PM)
After market: 63.89 -0.1 (-0.16%)63.99
+0.32 (+0.5%)
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 Cap39.39B
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 23.02 | ||
| Fwd PE | 13.45 | ||
| 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)0.21
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 4.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.79% | ||
| PM (TTM) | 3.47% | ||
| GM | 35.11% | ||
| 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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.81 | ||
| 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)94.41%
EPS 3Y29.72%
EPS 5Y
EPS Q2Q%
EPS Next Y107.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.36%
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