BLOCK INC (SQ3.DE) Stock Fundamental Analysis
FRA:SQ3 - Deutsche Boerse Ag - US8522341036 - Common Stock - Currency: EUR
Taking everything into account, SQ3 scores 5 out of 10 in our fundamental rating. SQ3 was compared to 51 industry peers in the Financial Services industry. SQ3 has an average financial health and profitability rating. SQ3 shows excellent growth, but is valued quite expensive already.
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 a decent Return On Assets value of 7.18%, SQ3 is doing good in the industry, outperforming 78.43% of the companies in the same industry.
SQ3 has a Return On Equity (12.18%) which is in line with its industry peers.
With a Return On Invested Capital value of 4.50%, SQ3 perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.18% | ||
| ROIC | 4.5% |
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
The Profit Margin of SQ3 (10.92%) is comparable to the rest of the industry.
SQ3's Profit Margin has improved in the last couple of years.
SQ3 has a worse Operating Margin (7.40%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of SQ3 has grown nicely.
SQ3 has a Gross Margin (37.95%) 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 | 7.4% | ||
| PM (TTM) | 10.92% | ||
| GM | 37.95% |
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
An Altman-Z score of 2.98 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
SQ3 has a better Altman-Z score (2.98) than 66.67% of its industry peers.
The Debt to FCF ratio of SQ3 is 4.78, which is a neutral value as it means it would take SQ3, 4.78 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.78, SQ3 is doing good in the industry, outperforming 64.71% of the companies in the same industry.
SQ3 has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
SQ3's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. SQ3 outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.55
WACC8.18%
2.3 Liquidity
SQ3 has a Current Ratio of 2.27. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
SQ3 has a Current ratio of 2.27. This is amongst the best in the industry. SQ3 outperforms 82.35% of its industry peers.
SQ3 has a Quick Ratio of 2.26. This indicates that SQ3 is financially healthy and has no problem in meeting its short term obligations.
SQ3 has a better Quick ratio (2.26) than 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% over the past 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 4.60% in the last year.
SQ3 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
EPS 1Y (TTM)37.5%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-34.12%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-3.11%
3.2 Future
The Earnings Per Share is expected to grow by 22.41% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y-18.83%
EPS Next 2Y4.26%
EPS Next 3Y11.22%
EPS Next 5Y22.41%
Revenue Next Year2.73%
Revenue Next 2Y6.37%
Revenue Next 3Y7.04%
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
With a Price/Earnings ratio of 22.30, SQ3 is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SQ3 is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. SQ3 is around the same levels.
Based on the Price/Forward Earnings ratio of 18.76, the valuation of SQ3 can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SQ3.
When comparing the Price/Forward Earnings ratio of SQ3 to the average of the S&P500 Index (21.76), we can say SQ3 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SQ3.
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 | 35.33 | ||
| EV/EBITDA | 18.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y4.26%
EPS Next 3Y11.22%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (7/8/2025, 7:00:00 PM)
58.64
-0.86 (-1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners71.3%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner ChangeN/A
Market Cap36.10B
Analysts80
Price Target61.85 (5.47%)
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)-27.92%
Min EPS beat(2)-36.25%
Max EPS beat(2)-19.6%
EPS beat(4)1
Avg EPS beat(4)-11.63%
Min EPS beat(4)-36.25%
Max EPS beat(4)9.51%
EPS beat(8)4
Avg EPS beat(8)-3.73%
EPS beat(12)7
Avg EPS beat(12)3.49%
EPS beat(16)9
Avg EPS beat(16)9.64%
Revenue beat(2)0
Avg Revenue beat(2)-6.45%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-5.07%
Revenue beat(4)0
Avg Revenue beat(4)-5.25%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-2.89%
Revenue beat(8)4
Avg Revenue beat(8)-1.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.2%
Revenue beat(16)7
Avg Revenue beat(16)-2.02%
PT rev (1m)3.76%
PT rev (3m)-29.02%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-33.74%
EPS NY rev (1m)-8.51%
EPS NY rev (3m)-34.4%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-5.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 18.76 | ||
| P/S | 1.77 | ||
| P/FCF | 35.33 | ||
| P/OCF | 31.3 | ||
| P/B | 1.97 | ||
| P/tB | 4.93 | ||
| EV/EBITDA | 18.38 |
EPS(TTM)2.63
EY4.48%
EPS(NY)3.13
Fwd EY5.33%
FCF(TTM)1.66
FCFY2.83%
OCF(TTM)1.87
OCFY3.19%
SpS33.18
BVpS29.76
TBVpS11.89
PEG (NY)N/A
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.18% | ||
| ROCE | 6.39% | ||
| ROIC | 4.5% | ||
| ROICexc | 6.3% | ||
| ROICexgc | 18.07% | ||
| OM | 7.4% | ||
| PM (TTM) | 10.92% | ||
| GM | 37.95% | ||
| FCFM | 5% |
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
ROICexcg growth 3Y19.01%
ROICexcg 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 41.87% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 8.75 | ||
| Cash Conversion | 63.22% | ||
| Profit Quality | 45.79% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 2.98 |
F-Score7
WACC8.18%
ROIC/WACC0.55
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)37.5%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-34.12%
EPS Next Y-18.83%
EPS Next 2Y4.26%
EPS Next 3Y11.22%
EPS Next 5Y22.41%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-3.11%
Revenue Next Year2.73%
Revenue Next 2Y6.37%
Revenue Next 3Y7.04%
Revenue Next 5Y10.16%
EBIT growth 1Y162.01%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year177.21%
EBIT Next 3Y59.24%
EBIT Next 5Y22.69%
FCF growth 1Y1415.77%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y460.98%
OCF growth 3Y26.28%
OCF growth 5Y29.67%