BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - FRA:SQ3 - US8522341036 - Common Stock
64.8 EUR
+0.28 (+0.43%)
We assign a fundamental rating of 5 out of 10 to SQ3. SQ3 was compared to 50 industry peers in the Financial Services industry. SQ3 has an average financial health and profitability rating. 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.
In the past 5 years SQ3 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.03%, SQ3 belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
SQ3 has a better Return On Equity (13.35%) than 74.00% of its industry peers.
The Return On Invested Capital of SQ3 (5.39%) is better than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROIC | 5.39% |
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 (12.41%) is comparable to the rest of the industry.
SQ3's Profit Margin has improved in the last couple of years.
The Operating Margin of SQ3 (8.60%) is comparable to the rest of the industry.
SQ3's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 39.38%, SQ3 perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
SQ3's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.6% | ||
| PM (TTM) | 12.41% | ||
| GM | 39.38% |
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.
Compared to 1 year ago, SQ3 has more shares outstanding
Compared to 5 years ago, SQ3 has more shares outstanding
SQ3 has a worse debt/assets ratio than last year.
2.2 Solvency
SQ3 has an Altman-Z score of 3.14. This indicates that SQ3 is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.14, SQ3 is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
The Debt to FCF ratio of SQ3 is 5.49, which is a neutral value as it means it would take SQ3, 5.49 years of fcf income to pay off all of its debts.
SQ3 has a Debt to FCF ratio (5.49) which is in line with its industry peers.
SQ3 has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, SQ3 is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.67
WACC8%
2.3 Liquidity
A Current Ratio of 1.96 indicates that SQ3 should not have too much problems paying its short term obligations.
SQ3 has a better Current ratio (1.96) than 68.00% of its industry peers.
SQ3 has a Quick Ratio of 1.94. This is a normal value and indicates that SQ3 is financially healthy and should not expect problems in meeting its short term obligations.
SQ3 has a better Quick ratio (1.94) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The earnings per share for SQ3 have decreased by -0.36% in the last year.
SQ3 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.32% yearly.
The Revenue has been growing slightly by 1.41% in the past 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)-0.36%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
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-22.61%
EPS Next 2Y4.02%
EPS Next 3Y10.9%
EPS Next 5Y14.3%
Revenue Next Year1.41%
Revenue Next 2Y5.59%
Revenue Next 3Y6.98%
Revenue Next 5Y10.16%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
SQ3 is valuated quite expensively with a Price/Earnings ratio of 27.00.
SQ3's Price/Earnings is on the same level as the industry average.
SQ3's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 20.53, the valuation of SQ3 can be described as rather expensive.
SQ3's Price/Forward Earnings is on the same level as the industry average.
SQ3's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
SQ3's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SQ3 indicates a slightly more expensive valuation: SQ3 is more expensive than 62.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.08 | ||
| EV/EBITDA | 18.53 |
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 2Y4.02%
EPS Next 3Y10.9%
5. Dividend
5.1 Amount
SQ3 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (11/3/2025, 7:00:00 PM)
64.8
+0.28 (+0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners75.03%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap39.50B
Revenue(TTM)23.83B
Net Income(TTM)2.96B
Analysts76.67
Price Target77.51 (19.61%)
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)-23.6%
Min EPS beat(2)-36.25%
Max EPS beat(2)-10.95%
EPS beat(4)0
Avg EPS beat(4)-16.74%
Min EPS beat(4)-36.25%
Max EPS beat(4)-0.18%
EPS beat(8)3
Avg EPS beat(8)-5.98%
EPS beat(12)6
Avg EPS beat(12)2.16%
EPS beat(16)8
Avg EPS beat(16)2.2%
Revenue beat(2)0
Avg Revenue beat(2)-6.41%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-5%
Revenue beat(4)0
Avg Revenue beat(4)-5.77%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-5%
Revenue beat(8)3
Avg Revenue beat(8)-2.77%
Revenue beat(12)5
Avg Revenue beat(12)-0.64%
Revenue beat(16)7
Avg Revenue beat(16)-1.82%
PT rev (1m)4.21%
PT rev (3m)20.17%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)-0.7%
EPS NY rev (3m)-4.68%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 20.53 | ||
| P/S | 1.91 | ||
| P/FCF | 43.08 | ||
| P/OCF | 37.84 | ||
| P/B | 2.06 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | 18.53 |
EPS(TTM)2.4
EY3.7%
EPS(NY)3.16
Fwd EY4.87%
FCF(TTM)1.5
FCFY2.32%
OCF(TTM)1.71
OCFY2.64%
SpS33.84
BVpS31.46
TBVpS12.74
PEG (NY)N/A
PEG (5Y)0.81
Graham Number41.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROCE | 7.65% | ||
| ROIC | 5.39% | ||
| ROICexc | 7.21% | ||
| ROICexgc | 21.16% | ||
| OM | 8.6% | ||
| PM (TTM) | 12.41% | ||
| GM | 39.38% | ||
| FCFM | 4.44% |
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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 40.44% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 8.31 | ||
| Cash Conversion | 49.99% | ||
| Profit Quality | 35.81% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 3.14 |
F-Score8
WACC8%
ROIC/WACC0.67
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)-0.36%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-33.33%
EPS Next Y-22.61%
EPS Next 2Y4.02%
EPS Next 3Y10.9%
EPS Next 5Y14.3%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
Revenue Next Year1.41%
Revenue Next 2Y5.59%
Revenue Next 3Y6.98%
Revenue Next 5Y10.16%
EBIT growth 1Y82.02%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year187.09%
EBIT Next 3Y61.68%
EBIT Next 5Y22.69%
FCF growth 1Y229.37%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y157.29%
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 2 / 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 5 / 10.