BLOCK INC (SQ3.DE) Fundamental Analysis & Valuation

FRA:SQ3 • US8522341036

Current stock price

60.625 EUR
+0.33 (+0.54%)
Last:

This SQ3.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SQ3.DE Profitability Analysis

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.
  • SQ3 had a positive operating cash flow in each of the past 5 years.
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 2025 0 1B 2B 3B

1.2 Ratios

  • SQ3's Return On Assets of 3.30% is fine compared to the rest of the industry. SQ3 outperforms 65.38% of its industry peers.
  • SQ3 has a Return On Equity of 5.88%. This is comparable to the rest of the industry: SQ3 outperforms 55.77% of its industry peers.
  • SQ3 has a better Return On Invested Capital (7.71%) than 75.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SQ3 is below the industry average of 9.16%.
  • The 3 year average ROIC (4.43%) for SQ3 is below the current ROIC(7.71%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.3%
ROE 5.88%
ROIC 7.71%
ROA(3y)3.74%
ROA(5y)2.12%
ROE(3y)6.52%
ROE(5y)4.3%
ROIC(3y)4.43%
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 2025 0 10 -10 20 -20

1.3 Margins

  • SQ3 has a Profit Margin (5.40%) which is comparable to the rest of the industry.
  • SQ3's Profit Margin has improved in the last couple of years.
  • SQ3's Operating Margin of 12.59% is in line compared to the rest of the industry. SQ3 outperforms 48.08% of its industry peers.
  • In the last couple of years the Operating Margin of SQ3 has grown nicely.
  • Looking at the Gross Margin, with a value of 42.82%, SQ3 is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • SQ3's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.59%
PM (TTM) 5.4%
GM 42.82%
OM growth 3YN/A
OM growth 5Y49.73%
PM growth 3YN/A
PM growth 5Y19.19%
GM growth 3Y7.8%
GM growth 5Y8.27%
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 2025 0 10 -10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. SQ3.DE Health Analysis

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 less shares outstanding
  • Compared to 5 years ago, SQ3 has more shares outstanding
  • Compared to 1 year ago, SQ3 has a worse debt to assets ratio.
SQ3.DE Yearly Shares OutstandingSQ3.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 10B 20B 30B

2.2 Solvency

  • SQ3 has an Altman-Z score of 2.84. 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.
  • Looking at the Altman-Z score, with a value of 2.84, SQ3 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • The Debt to FCF ratio of SQ3 is 3.57, which is a good value as it means it would take SQ3, 3.57 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 3.57, SQ3 is doing good in the industry, outperforming 69.23% of the companies in the same industry.
  • A Debt/Equity ratio of 0.30 indicates that SQ3 is not too dependend on debt financing.
  • SQ3's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. SQ3 outperforms 61.54% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.57
Altman-Z 2.84
ROIC/WACC1
WACC7.72%
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 2025 0 5B 10B 15B 20B

2.3 Liquidity

  • SQ3 has a Current Ratio of 2.20. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
  • SQ3's Current ratio of 2.20 is fine compared to the rest of the industry. SQ3 outperforms 71.15% of its industry peers.
  • A Quick Ratio of 2.19 indicates that SQ3 has no problem at all paying its short term obligations.
  • The Quick ratio of SQ3 (2.19) is better than 73.08% of its industry peers.
Industry RankSector Rank
Current Ratio 2.2
Quick Ratio 2.19
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 2025 5B 10B 15B 20B

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

7

3. SQ3.DE Growth Analysis

3.1 Past

  • SQ3 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.67%.
  • SQ3 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.65% yearly.
  • The Revenue has been growing slightly by 0.30% in the past year.
  • Measured over the past years, SQ3 shows a very strong growth in Revenue. The Revenue has been growing by 20.56% on average per year.
EPS 1Y (TTM)-29.67%
EPS 3Y33.33%
EPS 5Y23.65%
EPS Q2Q%-8.45%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y11.33%
Revenue growth 5Y20.56%
Sales Q2Q%3.65%

3.2 Future

  • SQ3 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.12% yearly.
  • Based on estimates for the next years, SQ3 will show a quite strong growth in Revenue. The Revenue will grow by 10.43% on average per year.
EPS Next Y58.33%
EPS Next 2Y43.87%
EPS Next 3Y36.73%
EPS Next 5Y27.12%
Revenue Next Year9.89%
Revenue Next 2Y10.2%
Revenue Next 3Y10.76%
Revenue Next 5Y10.43%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 2 4 6 8 10

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Find the best growth stocksShow best growing peers

5

4. SQ3.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 30.01 indicates a quite expensive valuation of SQ3.
  • SQ3's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, SQ3 is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 18.92, the valuation of SQ3 can be described as rather expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SQ3.
  • SQ3's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.29.
Industry RankSector Rank
PE 30.01
Fwd PE 18.92
SQ3.DE Price Earnings VS Forward Price EarningsSQ3.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • Based on the Price/Free Cash Flow ratio, SQ3 is valued a bit cheaper than 65.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.54
EV/EBITDA 12.63
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's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • 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 36.73% in the coming years.
PEG (NY)0.51
PEG (5Y)1.27
EPS Next 2Y43.87%
EPS Next 3Y36.73%

More info and screens

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

0

5. SQ3.DE Dividend Analysis

5.1 Amount

  • SQ3 does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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SQ3.DE Fundamentals: All Metrics, Ratios and Statistics

BLOCK INC

FRA:SQ3 (4/27/2026, 3:22:40 PM)

60.625

+0.33 (+0.54%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-26
Earnings (Next)05-07
Inst Owners82.52%
Inst Owner ChangeN/A
Ins Owners1.08%
Ins Owner ChangeN/A
Market Cap36.32B
Revenue(TTM)24.19B
Net Income(TTM)1.31B
Analysts81.63
Price Target74.01 (22.08%)
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)-10.53%
Min EPS beat(2)-19.86%
Max EPS beat(2)-1.2%
EPS beat(4)0
Avg EPS beat(4)-17.06%
Min EPS beat(4)-36.25%
Max EPS beat(4)-1.2%
EPS beat(8)2
Avg EPS beat(8)-7.66%
EPS beat(12)5
Avg EPS beat(12)-3.8%
EPS beat(16)7
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.4%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-0.71%
Revenue beat(8)1
Avg Revenue beat(8)-3.68%
Revenue beat(12)5
Avg Revenue beat(12)-1%
Revenue beat(16)6
Avg Revenue beat(16)-1.12%
PT rev (1m)3.89%
PT rev (3m)-0.03%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)-6.53%
EPS NY rev (1m)6.31%
EPS NY rev (3m)10.33%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.51%
Valuation
Industry RankSector Rank
PE 30.01
Fwd PE 18.92
P/S 1.76
P/FCF 17.54
P/OCF 16.49
P/B 1.92
P/tB 4.69
EV/EBITDA 12.63
EPS(TTM)2.02
EY3.33%
EPS(NY)3.2
Fwd EY5.28%
FCF(TTM)3.46
FCFY5.7%
OCF(TTM)3.68
OCFY6.06%
SpS34.48
BVpS31.65
TBVpS12.93
PEG (NY)0.51
PEG (5Y)1.27
Graham Number37.9245 (-37.44%)
Profitability
Industry RankSector Rank
ROA 3.3%
ROE 5.88%
ROCE 10.44%
ROIC 7.71%
ROICexc 10.23%
ROICexgc 25.43%
OM 12.59%
PM (TTM) 5.4%
GM 42.82%
FCFM 10.02%
ROA(3y)3.74%
ROA(5y)2.12%
ROE(3y)6.52%
ROE(5y)4.3%
ROIC(3y)4.43%
ROIC(5y)N/A
ROICexc(3y)6.05%
ROICexc(5y)N/A
ROICexgc(3y)16.79%
ROICexgc(5y)N/A
ROCE(3y)6%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y32.73%
ROICexc growth 3YN/A
ROICexc growth 5Y15.49%
OM growth 3YN/A
OM growth 5Y49.73%
PM growth 3YN/A
PM growth 5Y19.19%
GM growth 3Y7.8%
GM growth 5Y8.27%
F-Score6
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.57
Debt/EBITDA 1.94
Cap/Depr 41.96%
Cap/Sales 0.64%
Interest Coverage 12.36
Cash Conversion 75.54%
Profit Quality 185.71%
Current Ratio 2.2
Quick Ratio 2.19
Altman-Z 2.84
F-Score6
WACC7.72%
ROIC/WACC1
Cap/Depr(3y)39.96%
Cap/Depr(5y)79.17%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-29.67%
EPS 3Y33.33%
EPS 5Y23.65%
EPS Q2Q%-8.45%
EPS Next Y58.33%
EPS Next 2Y43.87%
EPS Next 3Y36.73%
EPS Next 5Y27.12%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y11.33%
Revenue growth 5Y20.56%
Sales Q2Q%3.65%
Revenue Next Year9.89%
Revenue Next 2Y10.2%
Revenue Next 3Y10.76%
Revenue Next 5Y10.43%
EBIT growth 1Y80.58%
EBIT growth 3YN/A
EBIT growth 5Y80.52%
EBIT Next Year148.06%
EBIT Next 3Y52.17%
EBIT Next 5Y15.43%
FCF growth 1Y56.09%
FCF growth 3Y681.09%
FCF growth 5Y58.39%
OCF growth 1Y51.09%
OCF growth 3Y144.77%
OCF growth 5Y46.55%

BLOCK INC / SQ3.DE Fundamental Analysis FAQ

What is the ChartMill fundamental rating of BLOCK INC (SQ3.DE) stock?

ChartMill assigns a fundamental rating of 6 / 10 to SQ3.DE.


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

ChartMill assigns a valuation rating of 5 / 10 to BLOCK INC (SQ3.DE). This can be considered as Fairly Valued.


Can you provide the profitability details for BLOCK INC?

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


Can you provide the expected EPS growth for SQ3 stock?

The Earnings per Share (EPS) of BLOCK INC (SQ3.DE) is expected to grow by 58.33% in the next year.