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BLOCK INC (SQ3.DE) Stock Fundamental Analysis

FRA:SQ3 - Deutsche Boerse Ag - US8522341036 - Common Stock - Currency: EUR

53.73  -1.71 (-3.08%)

Fundamental Rating

5

Overall SQ3 gets a fundamental rating of 5 out of 10. We evaluated SQ3 against 50 industry peers in the Financial Services industry. SQ3 has only an average score on both its financial health and profitability. SQ3 is growing strongly while it is still valued neutral. This is a good combination! This makes SQ3 very considerable for growth investing!


Dividend Valuation Growth Profitability Health

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5

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.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

1.2 Ratios

SQ3's Return On Assets of 7.88% is fine compared to the rest of the industry. SQ3 outperforms 74.00% of its industry peers.
Looking at the Return On Equity, with a value of 13.62%, SQ3 is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
With a Return On Invested Capital value of 4.21%, SQ3 perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
Industry RankSector Rank
ROA 7.88%
ROE 13.62%
ROIC 4.21%
ROA(3y)2.06%
ROA(5y)1.89%
ROE(3y)3.51%
ROE(5y)4.71%
ROIC(3y)N/A
ROIC(5y)N/A
SQ3.DE Yearly ROA, ROE, ROICSQ3.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

With a Profit Margin value of 12.01%, SQ3 perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
SQ3 has a Operating Margin of 6.99%. This is in the lower half of the industry: SQ3 underperforms 62.00% of its industry peers.
SQ3's Operating Margin has improved in the last couple of years.
The Gross Margin of SQ3 (36.85%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SQ3 has declined.
Industry RankSector Rank
OM 6.99%
PM (TTM) 12.01%
GM 36.85%
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%
SQ3.DE Yearly Profit, Operating, Gross MarginsSQ3.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SQ3 is destroying value.
The number of shares outstanding for SQ3 has been increased compared to 1 year ago.
SQ3 has more shares outstanding than it did 5 years ago.
SQ3 has a worse debt/assets ratio than last year.
SQ3.DE Yearly Shares OutstandingSQ3.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
SQ3.DE Yearly Total Debt VS Total AssetsSQ3.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

SQ3 has an Altman-Z score of 2.67. 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 (2.67) is better than 66.00% of its industry peers.
The Debt to FCF ratio of SQ3 is 4.88, which is a neutral value as it means it would take SQ3, 4.88 years of fcf income to pay off all of its debts.
SQ3 has a Debt to FCF ratio (4.88) which is comparable to the rest of the industry.
SQ3 has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
SQ3 has a Debt to Equity ratio (0.30) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 4.88
Altman-Z 2.67
ROIC/WACC0.3
WACC13.99%
SQ3.DE Yearly LT Debt VS Equity VS FCFSQ3.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

2.3 Liquidity

A Current Ratio of 2.33 indicates that SQ3 has no problem at all paying its short term obligations.
SQ3's Current ratio of 2.33 is fine compared to the rest of the industry. SQ3 outperforms 80.00% of its industry peers.
SQ3 has a Quick Ratio of 2.33. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.33, SQ3 belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.33
Quick Ratio 2.33
SQ3.DE Yearly Current Assets VS Current LiabilitesSQ3.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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8

3. Growth

3.1 Past

SQ3 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.27%, which is quite impressive.
The Earnings Per Share has been growing by 33.32% on average over the past years. This is a very strong growth
Looking at the last year, SQ3 shows a quite strong growth in Revenue. The Revenue has grown by 10.06% in the last year.
The Revenue has been growing by 38.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)88.27%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%57.78%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%4.5%

3.2 Future

SQ3 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.52% yearly.
Based on estimates for the next years, SQ3 will show a quite strong growth in Revenue. The Revenue will grow by 11.55% on average per year.
EPS Next Y35.39%
EPS Next 2Y28.67%
EPS Next 3Y24.79%
EPS Next 5Y24.52%
Revenue Next Year9.07%
Revenue Next 2Y10.01%
Revenue Next 3Y9.1%
Revenue Next 5Y11.55%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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.
SQ3.DE Yearly Revenue VS EstimatesSQ3.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B 50B
SQ3.DE Yearly EPS VS EstimatesSQ3.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 10 15

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.33, which indicates a rather expensive current 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.
The average S&P500 Price/Earnings ratio is at 29.35. SQ3 is valued slightly cheaper when compared to this.
SQ3 is valuated correctly with a Price/Forward Earnings ratio of 12.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SQ3 indicates a somewhat cheap valuation: SQ3 is cheaper than 62.00% of the companies listed in the same industry.
SQ3 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.33
Fwd PE 12.79
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

Based on the Enterprise Value to EBITDA ratio, SQ3 is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
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 RankSector Rank
P/FCF 23.26
EV/EBITDA 16.89
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.
SQ3's earnings are expected to grow with 24.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)0.52
EPS Next 2Y28.67%
EPS Next 3Y24.79%

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0

5. Dividend

5.1 Amount

SQ3 does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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BLOCK INC

FRA:SQ3 (3/7/2025, 7:00:00 PM)

53.73

-1.71 (-3.08%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)04-30 2025-04-30/amc
Inst Owners71.38%
Inst Owner ChangeN/A
Ins Owners1.02%
Ins Owner ChangeN/A
Market Cap33.28B
Analysts80.83
Price Target94.71 (76.27%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)-9.89%
Min EPS beat(2)-19.6%
Max EPS beat(2)-0.18%
EPS beat(4)2
Avg EPS beat(4)1.75%
Min EPS beat(4)-19.6%
Max EPS beat(4)17.26%
EPS beat(8)5
Avg EPS beat(8)2.84%
EPS beat(12)7
Avg EPS beat(12)5.4%
EPS beat(16)10
Avg EPS beat(16)21.31%
Revenue beat(2)0
Avg Revenue beat(2)-5.13%
Min Revenue beat(2)-5.19%
Max Revenue beat(2)-5.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.96%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)1.33%
Revenue beat(8)5
Avg Revenue beat(8)0.71%
Revenue beat(12)6
Avg Revenue beat(12)-0.02%
Revenue beat(16)8
Avg Revenue beat(16)1.54%
PT rev (1m)-2.47%
PT rev (3m)4.7%
EPS NQ rev (1m)-8.6%
EPS NQ rev (3m)-11.3%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-2.63%
Revenue NQ rev (1m)-3.4%
Revenue NQ rev (3m)-4.54%
Revenue NY rev (1m)-2.16%
Revenue NY rev (3m)-3.62%
Valuation
Industry RankSector Rank
PE 17.33
Fwd PE 12.79
P/S 1.5
P/FCF 23.26
P/OCF 21.17
P/B 1.7
P/tB 4.29
EV/EBITDA 16.89
EPS(TTM)3.1
EY5.77%
EPS(NY)4.2
Fwd EY7.82%
FCF(TTM)2.31
FCFY4.3%
OCF(TTM)2.54
OCFY4.72%
SpS35.86
BVpS31.62
TBVpS12.52
PEG (NY)0.49
PEG (5Y)0.52
Profitability
Industry RankSector Rank
ROA 7.88%
ROE 13.62%
ROCE 5.97%
ROIC 4.21%
ROICexc 6.01%
ROICexgc 17.2%
OM 6.99%
PM (TTM) 12.01%
GM 36.85%
FCFM 6.44%
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
ROICexcg growth 3Y19.01%
ROICexcg 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-Score6
Asset Turnover0.66
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 4.88
Debt/EBITDA 3.1
Cap/Depr 40.93%
Cap/Sales 0.64%
Interest Coverage 250
Cash Conversion 82.77%
Profit Quality 53.62%
Current Ratio 2.33
Quick Ratio 2.33
Altman-Z 2.67
F-Score6
WACC13.99%
ROIC/WACC0.3
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)88.27%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%57.78%
EPS Next Y35.39%
EPS Next 2Y28.67%
EPS Next 3Y24.79%
EPS Next 5Y24.52%
Revenue 1Y (TTM)10.06%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%4.5%
Revenue Next Year9.07%
Revenue Next 2Y10.01%
Revenue Next 3Y9.1%
Revenue Next 5Y11.55%
EBIT growth 1Y341.71%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year208.51%
EBIT Next 3Y68.84%
EBIT Next 5Y54.57%
FCF growth 1Y3195.04%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y1591.1%
OCF growth 3Y26.28%
OCF growth 5Y29.67%