BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - FRA:SQ3 - US8522341036 - Common Stock
51.58 EUR
-1.63 (-3.06%)
We assign a fundamental rating of 5 out of 10 to SQ3. SQ3 was compared to 52 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 not valued too expensively and it also shows a decent 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.
Each year in the past 5 years SQ3 had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.00%, SQ3 belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
SQ3 has a Return On Equity of 13.93%. This is in the better half of the industry: SQ3 outperforms 75.00% 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 67.31% of the companies in the same industry.
| 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
SQ3 has a Profit Margin of 13.08%. This is in the better half of the industry: SQ3 outperforms 61.54% of its industry peers.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
With a Operating Margin value of 9.63%, SQ3 perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Operating Margin of SQ3 has grown nicely.
The Gross Margin of SQ3 (40.87%) is comparable to the rest of the industry.
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.
The number of shares outstanding for SQ3 has been increased compared to 5 years ago.
SQ3 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.66, SQ3 is in the better half of the industry, outperforming 69.23% 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.
Looking at the Debt to FCF ratio, with a value of 4.25, SQ3 is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that SQ3 is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, SQ3 is in the better half of the industry, outperforming 61.54% 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
WACC7.86%
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.
The Current ratio of SQ3 (2.18) is better than 71.15% of its industry peers.
A Quick Ratio of 2.17 indicates that SQ3 has no problem at all paying its short term obligations.
SQ3 has a better Quick ratio (2.17) than 73.08% 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
Looking at the last year, SQ3 shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
SQ3 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
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.
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-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 24.68, SQ3 is valued on the expensive side.
Based on the Price/Earnings ratio, SQ3 is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.56. SQ3 is around the same levels.
SQ3 is valuated correctly with a Price/Forward Earnings ratio of 16.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SQ3 is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SQ3 to the average of the S&P500 Index (34.62), we can say SQ3 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 16.19 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA ratio is in line with the industry average.
SQ3's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.99 | ||
| EV/EBITDA | 13.61 |
4.3 Compensation for Growth
The decent profitability rating of SQ3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.74
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 (11/17/2025, 7:00:00 PM)
51.58
-1.63 (-3.06%)
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 Cap31.44B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts77.14
Price Target76.08 (47.5%)
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)1.09%
PT rev (3m)15.86%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)0.48%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 16.19 | ||
| P/S | 1.53 | ||
| P/FCF | 19.99 | ||
| P/OCF | 18.57 | ||
| P/B | 1.63 | ||
| P/tB | 3.91 | ||
| EV/EBITDA | 13.61 |
EPS(TTM)2.09
EY4.05%
EPS(NY)3.19
Fwd EY6.18%
FCF(TTM)2.58
FCFY5%
OCF(TTM)2.78
OCFY5.39%
SpS33.76
BVpS31.7
TBVpS13.2
PEG (NY)N/A
PEG (5Y)0.74
Graham Number38.61
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
WACC7.86%
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.