BLOCK INC (SQ3.DE) Fundamental Analysis & Valuation

FRA:SQ3 • US8522341036

Current stock price

54.2 EUR
+2.45 (+4.73%)
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.
  • In the past year SQ3 had a positive cash flow from operations.
  • 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.
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 72.73% of its industry peers.
  • SQ3 has a Return On Equity (5.88%) which is in line with its industry peers.
  • SQ3's Return On Invested Capital of 7.71% is fine compared to the rest of the industry. SQ3 outperforms 76.36% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SQ3 is below the industry average of 8.81%.
  • The last Return On Invested Capital (7.71%) for SQ3 is above the 3 year average (4.43%), which is a sign of increasing profitability.
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

  • Looking at the Profit Margin, with a value of 5.40%, SQ3 is in line with its industry, outperforming 47.27% of the companies in the same industry.
  • SQ3's Profit Margin has improved in the last couple of years.
  • The Operating Margin of SQ3 (12.59%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of SQ3 has grown nicely.
  • SQ3's Gross Margin of 42.82% is in line compared to the rest of the industry. SQ3 outperforms 49.09% of its industry peers.
  • 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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7

2. SQ3.DE Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SQ3 is still creating some value.
  • The number of shares outstanding for SQ3 has been reduced 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.
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

  • An Altman-Z score of 2.69 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • SQ3 has a Altman-Z score of 2.69. This is in the better half of the industry: SQ3 outperforms 72.73% of its industry peers.
  • SQ3 has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as SQ3 would need 3.57 years to pay back of all of its debts.
  • The Debt to FCF ratio of SQ3 (3.57) is better than 72.73% of its industry peers.
  • SQ3 has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
  • SQ3 has a better Debt to Equity ratio (0.30) than 61.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.57
Altman-Z 2.69
ROIC/WACC1.01
WACC7.62%
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.
  • The Current ratio of SQ3 (2.20) is better than 70.91% of its industry peers.
  • SQ3 has a Quick Ratio of 2.19. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
  • SQ3 has a Quick ratio of 2.19. This is in the better half of the industry: SQ3 outperforms 72.73% 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.
  • SQ3 shows a small growth in Revenue. In the last year, the Revenue has grown by 0.30%.
  • SQ3 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.56% yearly.
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

  • Based on estimates for the next years, SQ3 will show a very strong growth in Earnings Per Share. The EPS will grow by 29.54% on average per year.
  • Based on estimates for the next years, SQ3 will show a quite strong growth in Revenue. The Revenue will grow by 10.39% on average per year.
EPS Next Y48.93%
EPS Next 2Y40.93%
EPS Next 3Y35.74%
EPS Next 5Y29.54%
Revenue Next Year10.12%
Revenue Next 2Y10.31%
Revenue Next 3Y11%
Revenue Next 5Y10.39%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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
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 5 10

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5

4. SQ3.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 26.83, the valuation of SQ3 can be described as expensive.
  • SQ3's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, SQ3 is valued at the same level.
  • With a Price/Forward Earnings ratio of 17.98, 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.
  • SQ3's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
Industry RankSector Rank
PE 26.83
Fwd PE 17.98
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

  • SQ3's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SQ3 is cheaper than 63.64% of the companies in the same industry.
  • SQ3's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 15.68
EV/EBITDA 11.37
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

  • The 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.
  • SQ3's earnings are expected to grow with 35.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)1.13
EPS Next 2Y40.93%
EPS Next 3Y35.74%

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%

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SQ3.DE Fundamentals: All Metrics, Ratios and Statistics

BLOCK INC

FRA:SQ3 (4/8/2026, 7:00:00 PM)

54.2

+2.45 (+4.73%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-26
Earnings (Next)04-30
Inst Owners81.27%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap32.47B
Revenue(TTM)24.19B
Net Income(TTM)1.31B
Analysts81.63
Price Target71.24 (31.44%)
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)0%
PT rev (3m)-2.03%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)0%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.48%
Valuation
Industry RankSector Rank
PE 26.83
Fwd PE 17.98
P/S 1.57
P/FCF 15.68
P/OCF 14.73
P/B 1.71
P/tB 4.19
EV/EBITDA 11.37
EPS(TTM)2.02
EY3.73%
EPS(NY)3.02
Fwd EY5.56%
FCF(TTM)3.46
FCFY6.38%
OCF(TTM)3.68
OCFY6.79%
SpS34.5
BVpS31.66
TBVpS12.94
PEG (NY)0.55
PEG (5Y)1.13
Graham Number37.93
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 2.69
F-Score6
WACC7.62%
ROIC/WACC1.01
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 Y48.93%
EPS Next 2Y40.93%
EPS Next 3Y35.74%
EPS Next 5Y29.54%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y11.33%
Revenue growth 5Y20.56%
Sales Q2Q%3.65%
Revenue Next Year10.12%
Revenue Next 2Y10.31%
Revenue Next 3Y11%
Revenue Next 5Y10.39%
EBIT growth 1Y80.58%
EBIT growth 3YN/A
EBIT growth 5Y80.52%
EBIT Next Year134.59%
EBIT Next 3Y50.54%
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 48.93% in the next year.