BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQ3 - US8522341036 - Common Stock
53.84 EUR
+1.37 (+2.61%)
Taking everything into account, SQ3 scores 5 out of 10 in our fundamental rating. SQ3 was compared to 53 industry peers in the Financial Services industry. SQ3 has only an average score on both its financial health and profitability. SQ3 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SQ3 had positive earnings in the past year.
SQ3 had a positive operating cash flow in the past year.
SQ3 had positive earnings in 4 of the past 5 years.
In the past 5 years SQ3 always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SQ3 (8.00%) is better than 94.34% of its industry peers.
The Return On Equity of SQ3 (13.93%) is better than 75.47% of its industry peers.
SQ3 has a Return On Invested Capital of 5.59%. This is in the better half of the industry: SQ3 outperforms 71.70% 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
Looking at the Profit Margin, with a value of 13.08%, SQ3 is in the better half of the industry, outperforming 64.15% of the companies in the same industry.
SQ3's Profit Margin has improved in the last couple of years.
SQ3 has a Operating Margin (9.63%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SQ3 has grown nicely.
With a Gross Margin value of 40.87%, SQ3 perfoms like the industry average, outperforming 49.06% of the companies in the same industry.
In the last couple of years the Gross Margin of SQ3 has declined.
| 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.
Compared to 1 year ago, SQ3 has more shares outstanding
The number of shares outstanding for SQ3 has been increased compared to 5 years ago.
Compared to 1 year ago, SQ3 has a worse debt to assets ratio.
2.2 Solvency
SQ3 has an Altman-Z score of 2.66. 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.
With a decent Altman-Z score value of 2.66, SQ3 is doing good in the industry, outperforming 73.58% of the companies in the same industry.
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 67.92% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that SQ3 is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, SQ3 is doing good in the industry, outperforming 64.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.71
WACC7.83%
2.3 Liquidity
A Current Ratio of 2.18 indicates that SQ3 has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.18, SQ3 is in the better half of the industry, outperforming 73.58% of the companies in the same industry.
SQ3 has a Quick Ratio of 2.17. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.17, SQ3 is doing good in the industry, outperforming 75.47% of the companies in the same industry.
| 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%.
SQ3 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.32% yearly.
The Revenue has been growing slightly by 0.47% in the past year.
Measured over the past years, SQ3 shows a very strong growth in Revenue. The Revenue has been growing by 38.62% on average per year.
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
SQ3 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.30% yearly.
SQ3 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
EPS Next Y-21.7%
EPS Next 2Y4.94%
EPS Next 3Y11.79%
EPS Next 5Y14.3%
Revenue Next Year1.35%
Revenue Next 2Y5.55%
Revenue Next 3Y6.48%
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
With a Price/Earnings ratio of 25.64, SQ3 can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SQ3 is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SQ3 to the average of the S&P500 Index (25.65), we can say SQ3 is valued inline with the index average.
With a Price/Forward Earnings ratio of 16.75, SQ3 is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as SQ3.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, SQ3 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SQ3 is cheaper than 60.38% of the companies in the same industry.
SQ3's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.68 | ||
| EV/EBITDA | 13.65 |
4.3 Compensation for Growth
The decent profitability rating of SQ3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y4.94%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (11/24/2025, 7:00:00 PM)
53.84
+1.37 (+2.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners75.03%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap32.82B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts77.14
Price Target75.44 (40.12%)
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)0.24%
PT rev (3m)3.4%
EPS NQ rev (1m)-5.6%
EPS NQ rev (3m)-9.61%
EPS NY rev (1m)1.19%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-3.29%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 16.75 | ||
| P/S | 1.58 | ||
| P/FCF | 20.68 | ||
| P/OCF | 19.21 | ||
| P/B | 1.68 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 13.65 |
EPS(TTM)2.1
EY3.9%
EPS(NY)3.21
Fwd EY5.97%
FCF(TTM)2.6
FCFY4.83%
OCF(TTM)2.8
OCFY5.21%
SpS34.07
BVpS31.98
TBVpS13.32
PEG (NY)N/A
PEG (5Y)0.77
Graham Number38.88
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 | 2.66 |
F-Score7
WACC7.83%
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-21.7%
EPS Next 2Y4.94%
EPS Next 3Y11.79%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year1.35%
Revenue Next 2Y5.55%
Revenue Next 3Y6.48%
Revenue Next 5Y10.16%
EBIT growth 1Y56.58%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year187.09%
EBIT Next 3Y61.68%
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 4 / 10 to BLOCK INC (SQ3.DE). This can be considered as Fairly Valued.
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.