BLOCK INC (SQ3.DE) Fundamental Analysis & Valuation

FRA:SQ3 • US8522341036

Current stock price

51.1 EUR
-1.02 (-1.96%)
Last:

This SQ3.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SQ3.DE Profitability Analysis

1.1 Basic Checks

  • In the past year SQ3 was profitable.
  • In the past year SQ3 had a positive cash flow from operations.
  • Of the past 5 years SQ3 4 years were profitable.
  • SQ3 had a positive operating cash flow in each of the past 5 years.
SQ3.DE Yearly Net Income VS EBIT VS OCF VS FCFSQ3.DE 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 2024 2025 0 1B 2B 3B

1.2 Ratios

  • SQ3's Return On Assets of 3.30% is fine compared to the rest of the industry. SQ3 outperforms 72.73% of its industry peers.
  • SQ3's Return On Equity of 5.88% is in line compared to the rest of the industry. SQ3 outperforms 60.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.71%, SQ3 is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SQ3 is below the industry average of 8.81%.
  • The 3 year average ROIC (4.43%) for SQ3 is below the current ROIC(7.71%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.3%
ROE 5.88%
ROIC 7.71%
ROA(3y)3.74%
ROA(5y)2.12%
ROE(3y)6.52%
ROE(5y)4.3%
ROIC(3y)4.43%
ROIC(5y)N/A
SQ3.DE Yearly ROA, ROE, ROICSQ3.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

1.3 Margins

  • SQ3 has a Profit Margin (5.40%) which is in line with its industry peers.
  • SQ3's Profit Margin has improved in the last couple of years.
  • SQ3's Operating Margin of 12.59% is in line compared to the rest of the industry. SQ3 outperforms 50.91% of its industry peers.
  • SQ3's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 42.82%, SQ3 perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
  • SQ3's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.59%
PM (TTM) 5.4%
GM 42.82%
OM growth 3YN/A
OM growth 5Y49.73%
PM growth 3YN/A
PM growth 5Y19.19%
GM growth 3Y7.8%
GM growth 5Y8.27%
SQ3.DE Yearly Profit, Operating, Gross MarginsSQ3.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

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7

2. SQ3.DE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SQ3 is creating some value.
  • Compared to 1 year ago, SQ3 has less shares outstanding
  • The number of shares outstanding for SQ3 has been increased compared to 5 years ago.
  • The debt/assets ratio for SQ3 is higher compared to a year ago.
SQ3.DE Yearly Shares OutstandingSQ3.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
SQ3.DE Yearly Total Debt VS Total AssetsSQ3.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • SQ3 has an Altman-Z score of 2.59. This is not the best score and indicates that SQ3 is in the grey zone with still only limited risk for bankruptcy at the moment.
  • The Altman-Z score of SQ3 (2.59) is better than 72.73% of its industry peers.
  • SQ3 has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as SQ3 would need 3.57 years to pay back of all of its debts.
  • The Debt to FCF ratio of SQ3 (3.57) is better than 72.73% of its industry peers.
  • SQ3 has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of SQ3 (0.30) is better than 61.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.57
Altman-Z 2.59
ROIC/WACC1.02
WACC7.57%
SQ3.DE Yearly LT Debt VS Equity VS FCFSQ3.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 2.20 indicates that SQ3 has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.20, SQ3 is doing good in the industry, outperforming 70.91% of the companies in the same industry.
  • A Quick Ratio of 2.19 indicates that SQ3 has no problem at all paying its short term obligations.
  • SQ3's Quick ratio of 2.19 is fine compared to the rest of the industry. SQ3 outperforms 72.73% of its industry peers.
Industry RankSector Rank
Current Ratio 2.2
Quick Ratio 2.19
SQ3.DE Yearly Current Assets VS Current LiabilitesSQ3.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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7

3. SQ3.DE Growth Analysis

3.1 Past

  • SQ3 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.67%.
  • The Earnings Per Share has been growing by 23.65% on average over the past years. This is a very strong growth
  • Looking at the last year, SQ3 shows a small growth in Revenue. The Revenue has grown by 0.30% in the last year.
  • The Revenue has been growing by 20.56% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-29.67%
EPS 3Y33.33%
EPS 5Y23.65%
EPS Q2Q%-8.45%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y11.33%
Revenue growth 5Y20.56%
Sales Q2Q%3.65%

3.2 Future

  • The Earnings Per Share is expected to grow by 29.54% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 10.39% on average over the next years. This is quite good.
EPS Next Y48.93%
EPS Next 2Y40.93%
EPS Next 3Y35.74%
EPS Next 5Y29.54%
Revenue Next Year10.12%
Revenue Next 2Y10.31%
Revenue Next 3Y11%
Revenue Next 5Y10.39%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
SQ3.DE Yearly Revenue VS EstimatesSQ3.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
SQ3.DE Yearly EPS VS EstimatesSQ3.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 5 10

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5

4. SQ3.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 24.81, SQ3 is valued on the expensive side.
  • SQ3's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of SQ3 to the average of the S&P500 Index (26.21), we can say SQ3 is valued inline with the index average.
  • A Price/Forward Earnings ratio of 16.69 indicates a correct valuation of SQ3.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SQ3 is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 23.13. SQ3 is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 24.81
Fwd PE 16.69
SQ3.DE Price Earnings VS Forward Price EarningsSQ3.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SQ3 indicates a somewhat cheap valuation: SQ3 is cheaper than 65.45% of the companies listed in the same industry.
  • SQ3's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 14.55
EV/EBITDA 10.58
SQ3.DE Per share dataSQ3.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • The decent profitability rating of SQ3 may justify a higher PE ratio.
  • A more expensive valuation may be justified as SQ3's earnings are expected to grow with 35.74% in the coming years.
PEG (NY)0.51
PEG (5Y)1.05
EPS Next 2Y40.93%
EPS Next 3Y35.74%

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

0

5. SQ3.DE Dividend Analysis

5.1 Amount

  • SQ3 does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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SQ3.DE Fundamentals: All Metrics, Ratios and Statistics

BLOCK INC

FRA:SQ3 (4/2/2026, 7:00:00 PM)

51.1

-1.02 (-1.96%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-26
Earnings (Next)04-30
Inst Owners81.27%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap30.61B
Revenue(TTM)24.19B
Net Income(TTM)1.31B
Analysts81.63
Price Target71.24 (39.41%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)-10.53%
Min EPS beat(2)-19.86%
Max EPS beat(2)-1.2%
EPS beat(4)0
Avg EPS beat(4)-17.06%
Min EPS beat(4)-36.25%
Max EPS beat(4)-1.2%
EPS beat(8)2
Avg EPS beat(8)-7.66%
EPS beat(12)5
Avg EPS beat(12)-3.8%
EPS beat(16)7
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.4%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-0.71%
Revenue beat(8)1
Avg Revenue beat(8)-3.68%
Revenue beat(12)5
Avg Revenue beat(12)-1%
Revenue beat(16)6
Avg Revenue beat(16)-1.12%
PT rev (1m)0%
PT rev (3m)-2.03%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.48%
Valuation
Industry RankSector Rank
PE 24.81
Fwd PE 16.69
P/S 1.46
P/FCF 14.55
P/OCF 13.68
P/B 1.59
P/tB 3.89
EV/EBITDA 10.58
EPS(TTM)2.06
EY4.03%
EPS(NY)3.06
Fwd EY5.99%
FCF(TTM)3.51
FCFY6.87%
OCF(TTM)3.74
OCFY7.31%
SpS35.04
BVpS32.16
TBVpS13.14
PEG (NY)0.51
PEG (5Y)1.05
Graham Number38.61
Profitability
Industry RankSector Rank
ROA 3.3%
ROE 5.88%
ROCE 10.44%
ROIC 7.71%
ROICexc 10.23%
ROICexgc 25.43%
OM 12.59%
PM (TTM) 5.4%
GM 42.82%
FCFM 10.02%
ROA(3y)3.74%
ROA(5y)2.12%
ROE(3y)6.52%
ROE(5y)4.3%
ROIC(3y)4.43%
ROIC(5y)N/A
ROICexc(3y)6.05%
ROICexc(5y)N/A
ROICexgc(3y)16.79%
ROICexgc(5y)N/A
ROCE(3y)6%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y32.73%
ROICexc growth 3YN/A
ROICexc growth 5Y15.49%
OM growth 3YN/A
OM growth 5Y49.73%
PM growth 3YN/A
PM growth 5Y19.19%
GM growth 3Y7.8%
GM growth 5Y8.27%
F-Score6
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.57
Debt/EBITDA 1.94
Cap/Depr 41.96%
Cap/Sales 0.64%
Interest Coverage 12.36
Cash Conversion 75.54%
Profit Quality 185.71%
Current Ratio 2.2
Quick Ratio 2.19
Altman-Z 2.59
F-Score6
WACC7.57%
ROIC/WACC1.02
Cap/Depr(3y)39.96%
Cap/Depr(5y)79.17%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-29.67%
EPS 3Y33.33%
EPS 5Y23.65%
EPS Q2Q%-8.45%
EPS Next Y48.93%
EPS Next 2Y40.93%
EPS Next 3Y35.74%
EPS Next 5Y29.54%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y11.33%
Revenue growth 5Y20.56%
Sales Q2Q%3.65%
Revenue Next Year10.12%
Revenue Next 2Y10.31%
Revenue Next 3Y11%
Revenue Next 5Y10.39%
EBIT growth 1Y80.58%
EBIT growth 3YN/A
EBIT growth 5Y80.52%
EBIT Next Year134.59%
EBIT Next 3Y50.54%
EBIT Next 5Y15.43%
FCF growth 1Y56.09%
FCF growth 3Y681.09%
FCF growth 5Y58.39%
OCF growth 1Y51.09%
OCF growth 3Y144.77%
OCF growth 5Y46.55%

BLOCK INC / SQ3.DE Fundamental Analysis FAQ

What is the ChartMill fundamental rating of BLOCK INC (SQ3.DE) stock?

ChartMill assigns a fundamental rating of 6 / 10 to SQ3.DE.


What is the valuation status of BLOCK INC (SQ3.DE) stock?

ChartMill assigns a valuation rating of 5 / 10 to BLOCK INC (SQ3.DE). This can be considered as Fairly Valued.


Can you provide the profitability details for BLOCK INC?

BLOCK INC (SQ3.DE) has a profitability rating of 6 / 10.


Can you provide the expected EPS growth for SQ3 stock?

The Earnings per Share (EPS) of BLOCK INC (SQ3.DE) is expected to grow by 48.93% in the next year.