BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQ3 - US8522341036 - Common Stock
56.19 EUR
+0.02 (+0.04%)
SQ3 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 58 industry peers in the Financial Services industry. SQ3 has only an average score on both its financial health and profitability. SQ3 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SQ3 was profitable.
- SQ3 had a positive operating cash flow in the past year.
- 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
- The Return On Assets of SQ3 (8.00%) is better than 91.38% of its industry peers.
- SQ3 has a better Return On Equity (13.93%) than 72.41% 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 68.97% 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's Profit Margin of 13.08% is in line compared to the rest of the industry. SQ3 outperforms 55.17% of its industry peers.
- In the last couple of years the Profit Margin of SQ3 has grown nicely.
- Looking at the Operating Margin, with a value of 9.62%, SQ3 is in line with its industry, outperforming 48.28% 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 (40.87%) which is in line with its industry peers.
- SQ3's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
- SQ3 has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SQ3 has more shares outstanding
- SQ3 has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.73 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SQ3's Altman-Z score of 2.73 is fine compared to the rest of the industry. SQ3 outperforms 68.97% of its industry peers.
- The Debt to FCF ratio of SQ3 is 4.25, which is a neutral value as it means it would take SQ3, 4.25 years of fcf income to pay off all of its debts.
- SQ3 has a Debt to FCF ratio of 4.25. This is in the better half of the industry: SQ3 outperforms 68.97% 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.
- SQ3 has a Debt to Equity ratio of 0.27. This is in the better half of the industry: SQ3 outperforms 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.7
WACC7.97%
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.
- With a decent Current ratio value of 2.18, SQ3 is doing good in the industry, outperforming 70.69% of the companies in the same industry.
- 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.
- With a decent Quick ratio value of 2.17, SQ3 is doing good in the industry, outperforming 72.41% of the companies in the same industry.
| 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%.
- Measured over the past years, SQ3 shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.32% on average per year.
- SQ3 shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
- 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
- The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
- 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-27.45%
EPS Next 2Y0.44%
EPS Next 3Y9.5%
EPS Next 5Y14.3%
Revenue Next Year-0.08%
Revenue Next 2Y4.93%
Revenue Next 3Y6.92%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.89, the valuation of SQ3 can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as SQ3.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, SQ3 is valued at the same level.
- SQ3 is valuated rather expensively with a Price/Forward Earnings ratio of 19.21.
- The rest of the industry has a similar Price/Forward Earnings ratio as SQ3.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. SQ3 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 19.21 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as SQ3.
- SQ3's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.67 | ||
| EV/EBITDA | 14.33 |
4.3 Compensation for Growth
- The decent profitability rating of SQ3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y0.44%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
- SQ3 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:SQ3 (1/15/2026, 7:00:00 PM)
56.19
+0.02 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-18 2026-02-18/amc
Inst Owners81.09%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap34.14B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price Target72.72 (29.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)0.59%
PT rev (3m)-3.37%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-10.01%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-6.9%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.89 | ||
| Fwd PE | 19.21 | ||
| P/S | 1.66 | ||
| P/FCF | 21.67 | ||
| P/OCF | 20.12 | ||
| P/B | 1.76 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 14.33 |
EPS(TTM)2.09
EY3.72%
EPS(NY)2.92
Fwd EY5.2%
FCF(TTM)2.59
FCFY4.62%
OCF(TTM)2.79
OCFY4.97%
SpS33.94
BVpS31.87
TBVpS13.27
PEG (NY)N/A
PEG (5Y)0.81
Graham Number38.71
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.73 |
F-Score7
WACC7.97%
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-27.45%
EPS Next 2Y0.44%
EPS Next 3Y9.5%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year-0.08%
Revenue Next 2Y4.93%
Revenue Next 3Y6.92%
Revenue Next 5Y10.16%
EBIT growth 1Y56.5%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.44%
EBIT Next 3Y61.29%
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 26.89 and the Price/Book (PB) ratio is 1.76.
What is the financial health of BLOCK INC (SQ3.DE) stock?
The financial health rating of BLOCK INC (SQ3.DE) is 6 / 10.