BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQ3 - US8522341036 - Common Stock
55.99 EUR
+0.22 (+0.39%)
Overall SQ3 gets a fundamental rating of 5 out of 10. We evaluated SQ3 against 56 industry peers in the Financial Services industry. Both the profitability and the financial health of SQ3 get a neutral evaluation. Nothing too spectacular is happening here. 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.
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.
1.2 Ratios
SQ3's Return On Assets of 8.00% is amongst the best of the industry. SQ3 outperforms 92.86% of its industry peers.
Looking at the Return On Equity, with a value of 13.93%, SQ3 is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.59%, SQ3 is doing good in the industry, outperforming 71.43% 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 has a Profit Margin (13.08%) which is in line with its industry peers.
SQ3's Profit Margin has improved in the last couple of years.
SQ3 has a Operating Margin (9.62%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SQ3 has grown nicely.
The Gross Margin of SQ3 (40.87%) 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 | 9.62% | ||
| 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 2.74 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.74, SQ3 is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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's Debt to FCF ratio of 4.25 is fine compared to the rest of the industry. SQ3 outperforms 67.86% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that SQ3 is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, SQ3 is doing good in the industry, outperforming 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.69
WACC8.05%
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.
SQ3's Current ratio of 2.18 is fine compared to the rest of the industry. SQ3 outperforms 73.21% of its industry peers.
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.
SQ3 has a better Quick ratio (2.17) than 75.00% 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%.
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.
SQ3 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
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-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.
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
A Price/Earnings ratio of 27.05 indicates a quite expensive valuation of SQ3.
Compared to the rest of the industry, the Price/Earnings ratio of SQ3 is on the same level as its industry peers.
SQ3's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
The Price/Forward Earnings ratio is 19.35, which indicates a rather expensive current 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.
When comparing the Price/Forward Earnings ratio of SQ3 to the average of the S&P500 Index (23.13), we can say SQ3 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.05 | ||
| Fwd PE | 19.35 |
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 | 21.82 | ||
| EV/EBITDA | 14.44 |
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)0.81
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 (12/30/2025, 7:00:00 PM)
55.99
+0.22 (+0.39%)
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 Cap34.02B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price Target72.72 (29.88%)
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)-3.6%
PT rev (3m)-2.23%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-10.39%
EPS NY rev (1m)-7.34%
EPS NY rev (3m)-6.9%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.05 | ||
| Fwd PE | 19.35 | ||
| P/S | 1.67 | ||
| P/FCF | 21.82 | ||
| P/OCF | 20.26 | ||
| P/B | 1.78 | ||
| P/tB | 4.26 | ||
| EV/EBITDA | 14.44 |
EPS(TTM)2.07
EY3.7%
EPS(NY)2.89
Fwd EY5.17%
FCF(TTM)2.57
FCFY4.58%
OCF(TTM)2.76
OCFY4.93%
SpS33.58
BVpS31.52
TBVpS13.13
PEG (NY)N/A
PEG (5Y)0.81
Graham Number38.32
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 | 2.74 |
F-Score7
WACC8.05%
ROIC/WACC0.69
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 2 / 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 27.05 and the Price/Book (PB) ratio is 1.78.
What is the financial health of BLOCK INC (SQ3.DE) stock?
The financial health rating of BLOCK INC (SQ3.DE) is 6 / 10.