BLOCK INC (SQ3.DE) Stock Fundamental Analysis
FRA:SQ3 - Deutsche Boerse Ag - US8522341036 - Common Stock - Currency: EUR
SQ3 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Financial Services industry. The financial health of SQ3 is average, but there are quite some concerns on its profitability. SQ3 is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
SQ3 had positive earnings in the past year.
In the past year SQ3 had a positive cash flow from operations.
SQ3 had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SQ3 had a positive operating cash flow.
1.2 Ratios
SQ3 has a Return On Assets (3.11%) which is in line with its industry peers.
The Return On Equity of SQ3 (5.67%) is worse than 61.36% of its industry peers.
SQ3's Return On Invested Capital of 3.94% is in line compared to the rest of the industry. SQ3 outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROIC | 3.94% |
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 SQ3 (4.73%) is worse than 70.45% of its industry peers.
In the last couple of years the Profit Margin of SQ3 has declined.
SQ3 has a worse Operating Margin (6.18%) than 72.73% of its industry peers.
In the last couple of years the Operating Margin of SQ3 has grown nicely.
Looking at the Gross Margin, with a value of 36.06%, SQ3 is doing worse than 63.64% of the companies in the same industry.
SQ3'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 SQ3 is destroying value.
The number of shares outstanding for SQ3 has been increased compared to 1 year ago.
Compared to 5 years ago, SQ3 has more shares outstanding
SQ3 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.14 indicates that SQ3 is not in any danger for bankruptcy at the moment.
The Altman-Z score of SQ3 (3.14) is better than 63.64% of its industry peers.
The Debt to FCF ratio of SQ3 is 9.86, which is on the high side as it means it would take SQ3, 9.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SQ3 (9.86) is worse than 65.91% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that SQ3 is not too dependend on debt financing.
SQ3 has a Debt to Equity ratio (0.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.46
WACC8.54%
2.3 Liquidity
SQ3 has a Current Ratio of 2.07. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
SQ3's Current ratio of 2.07 is fine compared to the rest of the industry. SQ3 outperforms 75.00% of its industry peers.
A Quick Ratio of 2.06 indicates that SQ3 has no problem at all paying its short term obligations.
SQ3 has a better Quick ratio (2.06) than 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
SQ3 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 99.36%, which is quite impressive.
The Earnings Per Share has been growing by 31.23% on average over the past years. This is a very strong growth
SQ3 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, SQ3 will show a very strong growth in Earnings Per Share. The EPS will grow by 33.78% on average per year.
Based on estimates for the next years, SQ3 will show a quite strong growth in Revenue. The Revenue will grow by 11.81% on average per year.
EPS Next Y99.63%
EPS Next 2Y60.27%
EPS Next 3Y46.46%
EPS Next 5Y33.78%
Revenue Next Year11.49%
Revenue Next 2Y11.46%
Revenue Next 3Y11.47%
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.
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
With a Price/Earnings ratio of 28.14, SQ3 can be considered very expensive at the moment.
63.64% of the companies in the same industry are cheaper than SQ3, based on the Price/Earnings ratio.
SQ3 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.04, the valuation of SQ3 can be described as rather expensive.
SQ3's Price/Forward Earnings is on the same level as the industry average.
SQ3 is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.14 | ||
| Fwd PE | 19.04 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SQ3 is valued expensively inside the industry as 81.82% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.67 | ||
| EV/EBITDA | 27.87 |
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 SQ3's earnings are expected to grow with 46.46% in the coming years.
PEG (NY)0.28
PEG (5Y)0.9
EPS Next 2Y60.27%
EPS Next 3Y46.46%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BLOCK INC
FRA:SQ3 (2/4/2025, 7:00:00 PM)
84.7
-2.62 (-3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners69.84%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner ChangeN/A
Market Cap52.50B
Analysts79.62
Price Target97.11 (14.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)4.67%
Min EPS beat(2)-0.18%
Max EPS beat(2)9.51%
EPS beat(4)2
Avg EPS beat(4)0.57%
Min EPS beat(4)-24.33%
Max EPS beat(4)17.26%
EPS beat(8)5
Avg EPS beat(8)1.85%
EPS beat(12)8
Avg EPS beat(12)8.67%
EPS beat(16)11
Avg EPS beat(16)24.55%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-5.19%
Max Revenue beat(2)-2.89%
Revenue beat(4)2
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)1.33%
Revenue beat(8)5
Avg Revenue beat(8)1.33%
Revenue beat(12)7
Avg Revenue beat(12)0.41%
Revenue beat(16)9
Avg Revenue beat(16)1.93%
PT rev (1m)0%
PT rev (3m)18.89%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-4.01%
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-3.43%
Revenue NQ rev (1m)-1.43%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)-1.88%
Revenue NY rev (3m)-3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.14 | ||
| Fwd PE | 19.04 | ||
| P/S | 2.27 | ||
| P/FCF | 75.67 | ||
| P/OCF | 60.58 | ||
| P/B | 2.72 | ||
| P/tB | 8.66 | ||
| EV/EBITDA | 27.87 |
EPS(TTM)3.01
EY3.55%
EPS(NY)4.45
Fwd EY5.25%
FCF(TTM)1.12
FCFY1.32%
OCF(TTM)1.4
OCFY1.65%
SpS37.25
BVpS31.1
TBVpS9.78
PEG (NY)0.28
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROCE | 5.6% | ||
| ROIC | 3.94% | ||
| ROICexc | 5.93% | ||
| ROICexgc | 26.92% | ||
| 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 | 3.14 |
F-Score7
WACC8.54%
ROIC/WACC0.46
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 Y99.63%
EPS Next 2Y60.27%
EPS Next 3Y46.46%
EPS Next 5Y33.78%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%6.38%
Revenue Next Year11.49%
Revenue Next 2Y11.46%
Revenue Next 3Y11.47%
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%