BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQ3 - US8522341036 - Common Stock
52.52 EUR
-0.5 (-0.94%)
We assign a fundamental rating of 5 out of 10 to SQ3. SQ3 was compared to 53 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.
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.
Of the past 5 years SQ3 4 years were profitable.
SQ3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.00%, SQ3 belongs to the best of the industry, outperforming 94.34% 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 75.47% of its industry peers.
SQ3 has a Return On Invested Capital of 5.59%. This is in the better half of the industry: SQ3 outperforms 69.81% of its industry peers.
| 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 60.38% of its industry peers.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
SQ3 has a Operating Margin (9.63%) which is in line with its industry peers.
SQ3's Operating Margin has improved in the last couple of years.
SQ3 has a Gross Margin of 40.87%. This is comparable to the rest of the industry: SQ3 outperforms 45.28% of its industry peers.
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
SQ3 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SQ3 has been increased compared to 1 year ago.
Compared to 5 years ago, SQ3 has more shares outstanding
Compared to 1 year ago, SQ3 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.65 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SQ3 (2.65) is better than 73.58% of its industry peers.
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.
With a decent Debt to FCF ratio value of 4.25, SQ3 is doing good in the industry, outperforming 67.92% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that SQ3 is not too dependend on debt financing.
SQ3 has a Debt to Equity ratio of 0.27. This is in the better half of the industry: SQ3 outperforms 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.72
WACC7.81%
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 71.70% of its industry peers.
A Quick Ratio of 2.17 indicates that SQ3 has no problem at all paying its short term obligations.
The Quick ratio of SQ3 (2.17) is better than 73.58% 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.
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
Based on estimates for the next years, SQ3 will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.30% on average per year.
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-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
The Price/Earnings ratio is 25.25, which means the current valuation is very expensive for SQ3.
Compared to the rest of the industry, the Price/Earnings ratio of SQ3 is on the same level as its industry peers.
SQ3 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.51, SQ3 is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as SQ3.
SQ3 is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 16.51 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.33 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
The decent profitability rating of SQ3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y4.94%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
SQ3 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (12/4/2025, 7:00:00 PM)
52.52
-0.5 (-0.94%)
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 Cap31.91B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts77.14
Price Target75.44 (43.64%)
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)0.24%
PT rev (3m)3.4%
EPS NQ rev (1m)-8.36%
EPS NQ rev (3m)-8.45%
EPS NY rev (1m)1.19%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-3.21%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 16.51 | ||
| P/S | 1.55 | ||
| P/FCF | 20.33 | ||
| P/OCF | 18.88 | ||
| P/B | 1.65 | ||
| P/tB | 3.97 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)2.08
EY3.96%
EPS(NY)3.18
Fwd EY6.06%
FCF(TTM)2.58
FCFY4.92%
OCF(TTM)2.78
OCFY5.3%
SpS33.82
BVpS31.75
TBVpS13.22
PEG (NY)N/A
PEG (5Y)0.76
Graham Number38.55
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 | 2.65 |
F-Score7
WACC7.81%
ROIC/WACC0.72
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 3 / 10 to BLOCK INC (SQ3.DE). This can be considered as Overvalued.
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.