BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQ3 - US8522341036 - Common Stock
52.43 EUR
-0.52 (-0.98%)
We assign a fundamental rating of 5 out of 10 to SQ3. SQ3 was compared to 54 industry peers in the Financial Services industry. Both the profitability and the financial health of SQ3 get a neutral evaluation. Nothing too spectacular is happening here. SQ3 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
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.
In the past 5 years SQ3 always reported a positive cash flow from operatings.
1.2 Ratios
SQ3 has a Return On Assets of 8.00%. This is amongst the best in the industry. SQ3 outperforms 90.74% of its industry peers.
SQ3 has a better Return On Equity (13.93%) than 72.22% of its industry peers.
SQ3's Return On Invested Capital of 5.59% is fine compared to the rest of the industry. SQ3 outperforms 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 13.93% | ||
| ROIC | 5.59% |
ROA(3y)2.06%
ROA(5y)1.89%
ROE(3y)3.51%
ROE(5y)4.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SQ3 (13.08%) is comparable to the rest of the industry.
SQ3's Profit Margin has improved in the last couple of years.
SQ3's Operating Margin of 9.63% is in line compared to the rest of the industry. SQ3 outperforms 50.00% of its industry peers.
SQ3's Operating Margin has improved in the last couple of years.
SQ3's Gross Margin of 40.87% is in line compared to the rest of the industry. SQ3 outperforms 44.44% of its industry peers.
SQ3's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.63% | ||
| PM (TTM) | 13.08% | ||
| GM | 40.87% |
OM growth 3Y43.23%
OM growth 5Y16.51%
PM growth 3Y133.66%
PM growth 5Y8.56%
GM growth 3Y13.77%
GM growth 5Y-1.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SQ3 is destroying value.
SQ3 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SQ3 has more shares outstanding
Compared to 1 year ago, SQ3 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.64 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SQ3 (2.64) is better than 70.37% of its industry peers.
The Debt to FCF ratio of SQ3 is 4.25, which is a neutral value as it means it would take SQ3, 4.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.25, SQ3 is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
SQ3 has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SQ3 (0.27) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.71
WACC7.87%
2.3 Liquidity
SQ3 has a Current Ratio of 2.18. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.18, SQ3 is doing good in the industry, outperforming 72.22% of the companies in the same industry.
A Quick Ratio of 2.17 indicates that SQ3 has no problem at all paying its short term obligations.
SQ3 has a Quick ratio of 2.17. This is in the better half of the industry: SQ3 outperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
SQ3 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.86%.
The Earnings Per Share has been growing by 33.32% on average over the past years. This is a very strong growth
SQ3 shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
The Revenue has been growing by 38.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-21.86%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-38.64%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
3.2 Future
The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
Based on estimates for the next years, SQ3 will show a quite strong growth in Revenue. The Revenue will grow by 10.16% on average per year.
EPS Next Y-27.03%
EPS Next 2Y0.72%
EPS Next 3Y9.71%
EPS Next 5Y14.3%
Revenue Next Year-0.11%
Revenue Next 2Y4.74%
Revenue Next 3Y6.8%
Revenue Next 5Y10.16%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.21 indicates a quite expensive valuation of SQ3.
Compared to the rest of the industry, the Price/Earnings ratio of SQ3 is on the same level as its industry peers.
SQ3's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 17.87, SQ3 is valued on the expensive side.
SQ3's Price/Forward Earnings is on the same level as the industry average.
SQ3 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 17.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SQ3.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQ3 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 13.36 |
4.3 Compensation for Growth
The decent profitability rating of SQ3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y0.72%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (12/8/2025, 7:00:00 PM)
52.43
-0.52 (-0.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners81.16%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap31.86B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price Target72.3 (37.9%)
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)0
Avg EPS beat(2)-15.41%
Min EPS beat(2)-19.86%
Max EPS beat(2)-10.95%
EPS beat(4)0
Avg EPS beat(4)-21.66%
Min EPS beat(4)-36.25%
Max EPS beat(4)-10.95%
EPS beat(8)2
Avg EPS beat(8)-10.55%
EPS beat(12)5
Avg EPS beat(12)-5.99%
EPS beat(16)8
Avg EPS beat(16)1.09%
Revenue beat(2)0
Avg Revenue beat(2)-4.55%
Min Revenue beat(2)-5%
Max Revenue beat(2)-4.09%
Revenue beat(4)0
Avg Revenue beat(4)-5.5%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-4.09%
Revenue beat(8)2
Avg Revenue beat(8)-3.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.95%
Revenue beat(16)7
Avg Revenue beat(16)-1.07%
PT rev (1m)-6.72%
PT rev (3m)-0.9%
EPS NQ rev (1m)-6%
EPS NQ rev (3m)-8.97%
EPS NY rev (1m)-6.81%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)-1.3%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 17.87 | ||
| P/S | 1.55 | ||
| P/FCF | 20.27 | ||
| P/OCF | 18.82 | ||
| P/B | 1.65 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 13.36 |
EPS(TTM)2.08
EY3.97%
EPS(NY)2.93
Fwd EY5.59%
FCF(TTM)2.59
FCFY4.93%
OCF(TTM)2.79
OCFY5.31%
SpS33.85
BVpS31.78
TBVpS13.24
PEG (NY)N/A
PEG (5Y)0.76
Graham Number38.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 13.93% | ||
| ROCE | 7.94% | ||
| ROIC | 5.59% | ||
| ROICexc | 8.01% | ||
| ROICexgc | 22.7% | ||
| OM | 9.63% | ||
| PM (TTM) | 13.08% | ||
| GM | 40.87% | ||
| FCFM | 7.64% |
ROA(3y)2.06%
ROA(5y)1.89%
ROE(3y)3.51%
ROE(5y)4.71%
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 3Y19.01%
ROICexgc growth 5Y9.35%
ROICexc growth 3Y-9.27%
ROICexc growth 5Y-6.03%
OM growth 3Y43.23%
OM growth 5Y16.51%
PM growth 3Y133.66%
PM growth 5Y8.56%
GM growth 3Y13.77%
GM growth 5Y-1.67%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 38.87% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 9.59 | ||
| Cash Conversion | 73.87% | ||
| Profit Quality | 58.41% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 2.64 |
F-Score7
WACC7.87%
ROIC/WACC0.71
Cap/Depr(3y)42.7%
Cap/Depr(5y)103.65%
Cap/Sales(3y)0.77%
Cap/Sales(5y)1.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.86%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-38.64%
EPS Next Y-27.03%
EPS Next 2Y0.72%
EPS Next 3Y9.71%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year-0.11%
Revenue Next 2Y4.74%
Revenue Next 3Y6.8%
Revenue Next 5Y10.16%
EBIT growth 1Y56.58%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.52%
EBIT Next 3Y61.09%
EBIT Next 5Y22.69%
FCF growth 1Y130.2%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y108.9%
OCF growth 3Y26.28%
OCF growth 5Y29.67%
BLOCK INC / SQ3.DE FAQ
What is the ChartMill fundamental rating of BLOCK INC (SQ3.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SQ3.DE.
Can you provide the valuation status for BLOCK INC?
ChartMill assigns a valuation rating of 3 / 10 to BLOCK INC (SQ3.DE). This can be considered as Overvalued.
How profitable is BLOCK INC (SQ3.DE) stock?
BLOCK INC (SQ3.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for SQ3 stock?
The financial health rating of BLOCK INC (SQ3.DE) is 6 / 10.