BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQ3 - US8522341036 - Common Stock
53.1 EUR
+0.67 (+1.28%)
Overall SQ3 gets a fundamental rating of 5 out of 10. We evaluated SQ3 against 54 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.
SQ3 had positive earnings in 4 of the past 5 years.
In the past 5 years SQ3 always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.00%, SQ3 belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.93%, SQ3 is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
SQ3's Return On Invested Capital of 5.59% is fine compared to the rest of the industry. SQ3 outperforms 68.52% 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
Looking at the Profit Margin, with a value of 13.08%, SQ3 is in line with its industry, outperforming 57.41% of the companies in the same industry.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
The Operating Margin of SQ3 (9.63%) is comparable to the rest of the industry.
SQ3's Operating Margin has improved in the last couple of years.
SQ3 has a Gross Margin (40.87%) 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 | 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.
SQ3 has more shares outstanding than it did 1 year ago.
SQ3 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SQ3 has a worse debt to assets ratio.
2.2 Solvency
SQ3 has an Altman-Z score of 2.65. 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.
SQ3 has a better Altman-Z score (2.65) than 68.52% 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 better Debt to FCF ratio (4.25) than 64.81% of its industry peers.
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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.71
WACC7.91%
2.3 Liquidity
A Current Ratio of 2.18 indicates that SQ3 has no problem at all paying its short term obligations.
The Current ratio of SQ3 (2.18) is better than 72.22% of its industry peers.
A Quick Ratio of 2.17 indicates that SQ3 has no problem at all paying its short term obligations.
SQ3 has a better Quick ratio (2.17) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
The earnings per share for SQ3 have decreased strongly by -21.86% in the last year.
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.
Looking at the last year, SQ3 shows a small growth in Revenue. The Revenue has grown by 0.47% in the last year.
The Revenue has been growing by 38.62% on average over the past years. This is a very strong growth!
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
SQ3 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.30% yearly.
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-27.03%
EPS Next 2Y0.72%
EPS Next 3Y9.71%
EPS Next 5Y14.3%
Revenue Next Year-0.11%
Revenue Next 2Y4.74%
Revenue Next 3Y6.8%
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.
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
SQ3 is valuated quite expensively with a Price/Earnings ratio of 25.41.
SQ3's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.29. SQ3 is around the same levels.
A Price/Forward Earnings ratio of 18.07 indicates a rather expensive valuation of SQ3.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SQ3 is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.51. SQ3 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQ3 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.5 | ||
| EV/EBITDA | 13.52 |
4.3 Compensation for Growth
SQ3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y0.72%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (12/9/2025, 7:00:00 PM)
53.1
+0.67 (+1.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners81.16%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap32.27B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price Target72.3 (36.16%)
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)-6.72%
PT rev (3m)-0.9%
EPS NQ rev (1m)-6%
EPS NQ rev (3m)-8.97%
EPS NY rev (1m)-6.81%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)-1.3%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 18.07 | ||
| P/S | 1.57 | ||
| P/FCF | 20.5 | ||
| P/OCF | 19.04 | ||
| P/B | 1.67 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 13.52 |
EPS(TTM)2.09
EY3.94%
EPS(NY)2.94
Fwd EY5.53%
FCF(TTM)2.59
FCFY4.88%
OCF(TTM)2.79
OCFY5.25%
SpS33.9
BVpS31.83
TBVpS13.26
PEG (NY)N/A
PEG (5Y)0.76
Graham Number38.69
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
WACC7.91%
ROIC/WACC0.71
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-27.03%
EPS Next 2Y0.72%
EPS Next 3Y9.71%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year-0.11%
Revenue Next 2Y4.74%
Revenue Next 3Y6.8%
Revenue Next 5Y10.16%
EBIT growth 1Y56.58%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.52%
EBIT Next 3Y61.09%
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.