BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - FRA:SQ3 - US8522341036 - Common Stock
66.34 EUR
+2.11 (+3.29%)
Taking everything into account, SQ3 scores 5 out of 10 in our fundamental rating. SQ3 was compared to 46 industry peers in the Financial Services industry. SQ3 has only an average score on both its financial health and profitability. 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's Return On Assets of 8.03% is amongst the best of the industry. SQ3 outperforms 86.96% of its industry peers.
With a decent Return On Equity value of 13.35%, SQ3 is doing good in the industry, outperforming 67.39% of the companies in the same industry.
SQ3 has a better Return On Invested Capital (5.39%) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROIC | 5.39% |
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's Profit Margin of 12.41% is in line compared to the rest of the industry. SQ3 outperforms 52.17% of its industry peers.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
With a Operating Margin value of 8.60%, SQ3 perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
In the last couple of years the Operating Margin of SQ3 has grown nicely.
SQ3 has a Gross Margin (39.38%) which 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 | 8.6% | ||
| PM (TTM) | 12.41% | ||
| GM | 39.38% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SQ3 is destroying value.
Compared to 1 year ago, SQ3 has more shares outstanding
Compared to 5 years ago, SQ3 has more shares outstanding
The debt/assets ratio for SQ3 is higher compared to a year ago.
2.2 Solvency
SQ3 has an Altman-Z score of 3.21. This indicates that SQ3 is financially healthy and has little risk of bankruptcy at the moment.
SQ3 has a Altman-Z score of 3.21. This is in the better half of the industry: SQ3 outperforms 67.39% of its industry peers.
The Debt to FCF ratio of SQ3 is 5.49, which is a neutral value as it means it would take SQ3, 5.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.49, SQ3 is in line with its industry, outperforming 58.70% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that SQ3 is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, SQ3 is doing good in the industry, outperforming 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.68
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.96 indicates that SQ3 should not have too much problems paying its short term obligations.
SQ3 has a Current ratio of 1.96. This is in the better half of the industry: SQ3 outperforms 76.09% of its industry peers.
A Quick Ratio of 1.94 indicates that SQ3 should not have too much problems paying its short term obligations.
SQ3 has a Quick ratio of 1.94. This is amongst the best in the industry. SQ3 outperforms 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
SQ3 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
SQ3 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.32% yearly.
SQ3 shows a small growth in Revenue. In the last year, the Revenue has grown by 1.41%.
SQ3 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
EPS 1Y (TTM)-0.36%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
3.2 Future
The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue Next Year1.32%
Revenue Next 2Y5.6%
Revenue Next 3Y6.81%
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 28.35, SQ3 can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SQ3.
The average S&P500 Price/Earnings ratio is at 27.41. SQ3 is around the same levels.
With a Price/Forward Earnings ratio of 20.86, SQ3 is valued on the expensive side.
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 (22.88), we can say SQ3 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 20.86 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SQ3 is valued a bit more expensive than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.11 | ||
| EV/EBITDA | 19.24 |
4.3 Compensation for Growth
SQ3 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SQ3's earnings are expected to grow with 12.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y5.6%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (9/18/2025, 7:00:00 PM)
66.34
+2.11 (+3.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners70.56%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap40.44B
Analysts77.08
Price Target74.38 (12.12%)
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)-23.6%
Min EPS beat(2)-36.25%
Max EPS beat(2)-10.95%
EPS beat(4)0
Avg EPS beat(4)-16.74%
Min EPS beat(4)-36.25%
Max EPS beat(4)-0.18%
EPS beat(8)3
Avg EPS beat(8)-5.98%
EPS beat(12)6
Avg EPS beat(12)2.16%
EPS beat(16)8
Avg EPS beat(16)2.2%
Revenue beat(2)0
Avg Revenue beat(2)-6.41%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-5%
Revenue beat(4)0
Avg Revenue beat(4)-5.77%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-5%
Revenue beat(8)3
Avg Revenue beat(8)-2.77%
Revenue beat(12)5
Avg Revenue beat(12)-0.64%
Revenue beat(16)7
Avg Revenue beat(16)-1.82%
PT rev (1m)13.27%
PT rev (3m)22.18%
EPS NQ rev (1m)-5.91%
EPS NQ rev (3m)-9.88%
EPS NY rev (1m)-2.88%
EPS NY rev (3m)-11.12%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.35 | ||
| Fwd PE | 20.86 | ||
| P/S | 2.01 | ||
| P/FCF | 45.11 | ||
| P/OCF | 39.62 | ||
| P/B | 2.16 | ||
| P/tB | 5.33 | ||
| EV/EBITDA | 19.24 |
EPS(TTM)2.34
EY3.53%
EPS(NY)3.18
Fwd EY4.79%
FCF(TTM)1.47
FCFY2.22%
OCF(TTM)1.67
OCFY2.52%
SpS33.09
BVpS30.76
TBVpS12.45
PEG (NY)N/A
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROCE | 7.65% | ||
| ROIC | 5.39% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 21.16% | ||
| OM | 8.6% | ||
| PM (TTM) | 12.41% | ||
| GM | 39.38% | ||
| FCFM | 4.44% |
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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 40.44% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 8.31 | ||
| Cash Conversion | 49.99% | ||
| Profit Quality | 35.81% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 3.21 |
F-Score8
WACC7.97%
ROIC/WACC0.68
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)-0.36%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-33.33%
EPS Next Y-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
Revenue Next Year1.32%
Revenue Next 2Y5.6%
Revenue Next 3Y6.81%
Revenue Next 5Y10.16%
EBIT growth 1Y82.02%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.76%
EBIT Next 3Y61.21%
EBIT Next 5Y22.69%
FCF growth 1Y229.37%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y157.29%
OCF growth 3Y26.28%
OCF growth 5Y29.67%