BLOCK INC (SQ3.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:SQ3 • US8522341036

46.665 EUR
-1.72 (-3.55%)
Last: Feb 5, 2026, 07:00 PM
Fundamental Rating

5

Taking everything into account, SQ3 scores 5 out of 10 in our fundamental rating. SQ3 was compared to 55 industry peers in the Financial Services industry. SQ3 has only an average score on both its financial health and profitability. While showing a medium growth rate, SQ3 is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

6

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

1.2 Ratios

  • SQ3 has a Return On Assets of 8.00%. This is amongst the best in the industry. SQ3 outperforms 92.73% of its industry peers.
  • SQ3 has a better Return On Equity (13.93%) than 67.27% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.59%, SQ3 is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
Industry RankSector 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
SQ3.DE Yearly ROA, ROE, ROICSQ3.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.08%, SQ3 is in line with its industry, outperforming 52.73% 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 (9.62%) which is comparable to the rest of the industry.
  • SQ3's Operating Margin has improved in the last couple of years.
  • SQ3 has a Gross Margin (40.87%) which 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 9.62%
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%
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 0 10 -10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SQ3 is destroying value.
  • SQ3 has more shares outstanding than it did 1 year ago.
  • 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 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 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 2.50 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.50, SQ3 is doing good in the industry, outperforming 70.91% of the companies in the same industry.
  • SQ3 has a debt to FCF ratio of 4.25. This is a neutral value as SQ3 would need 4.25 years to pay back of all of its debts.
  • SQ3 has a better Debt to FCF ratio (4.25) than 70.91% of its industry peers.
  • 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 70.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.25
Altman-Z 2.5
ROIC/WACC0.7
WACC8.02%
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 0 5B 10B 15B 20B

2.3 Liquidity

  • A Current Ratio of 2.18 indicates that SQ3 has no problem at all paying its short term obligations.
  • SQ3 has a better Current ratio (2.18) than 74.55% of its industry peers.
  • 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.
  • SQ3 has a better Quick ratio (2.17) than 74.55% of its industry peers.
Industry RankSector Rank
Current Ratio 2.18
Quick Ratio 2.17
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 5B 10B 15B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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-27.57%
EPS Next 2Y0.46%
EPS Next 3Y9.74%
EPS Next 5Y14.3%
Revenue Next Year-0.24%
Revenue Next 2Y4.84%
Revenue Next 3Y6.85%
Revenue Next 5Y10.16%

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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B 50B
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

More info and screens

Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 22.65, the valuation of SQ3 can be described as rather expensive.
  • The rest of the industry has a similar Price/Earnings ratio as SQ3.
  • When comparing the Price/Earnings ratio of SQ3 to the average of the S&P500 Index (27.67), we can say SQ3 is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 16.19, SQ3 is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SQ3 is on the same level as its industry peers.
  • SQ3's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Industry RankSector Rank
PE 22.65
Fwd PE 16.19
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 is on the same level as its industry peers.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as SQ3.
Industry RankSector Rank
P/FCF 18.26
EV/EBITDA 11.99
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

  • SQ3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y0.46%
EPS Next 3Y9.74%

More info and screens

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

0

5. Dividend

5.1 Amount

  • No dividends for SQ3!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

BLOCK INC

FRA:SQ3 (2/5/2026, 7:00:00 PM)

46.665

-1.72 (-3.55%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners81.09%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap28.36B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price Target74.03 (58.64%)
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)-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)1.8%
PT rev (3m)-4.48%
EPS NQ rev (1m)-0.77%
EPS NQ rev (3m)-11.32%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-6.4%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-3.45%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-1.63%
Valuation
Industry RankSector Rank
PE 22.65
Fwd PE 16.19
P/S 1.4
P/FCF 18.26
P/OCF 16.96
P/B 1.49
P/tB 3.57
EV/EBITDA 11.99
EPS(TTM)2.06
EY4.41%
EPS(NY)2.88
Fwd EY6.18%
FCF(TTM)2.56
FCFY5.48%
OCF(TTM)2.75
OCFY5.9%
SpS33.44
BVpS31.4
TBVpS13.08
PEG (NY)N/A
PEG (5Y)0.68
Graham Number38.15
Profitability
Industry RankSector Rank
ROA 8%
ROE 13.93%
ROCE 7.93%
ROIC 5.59%
ROICexc 8%
ROICexgc 22.69%
OM 9.62%
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 RankSector Rank
Debt/Equity 0.27
Debt/FCF 4.25
Debt/EBITDA 2.27
Cap/Depr 38.96%
Cap/Sales 0.59%
Interest Coverage 9.59
Cash Conversion 73.93%
Profit Quality 58.41%
Current Ratio 2.18
Quick Ratio 2.17
Altman-Z 2.5
F-Score7
WACC8.02%
ROIC/WACC0.7
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-27.57%
EPS Next 2Y0.46%
EPS Next 3Y9.74%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year-0.24%
Revenue Next 2Y4.84%
Revenue Next 3Y6.85%
Revenue Next 5Y10.16%
EBIT growth 1Y56.5%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.19%
EBIT Next 3Y61.16%
EBIT Next 5Y22.69%
FCF growth 1Y130.22%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y108.93%
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.


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

ChartMill assigns a valuation rating of 3 / 10 to BLOCK INC (SQ3.DE). This can be considered as Overvalued.


What is the profitability of SQ3 stock?

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


What is the valuation of BLOCK INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for BLOCK INC (SQ3.DE) is 22.65 and the Price/Book (PB) ratio is 1.49.


What is the financial health of BLOCK INC (SQ3.DE) stock?

The financial health rating of BLOCK INC (SQ3.DE) is 6 / 10.