BLOCK INC (SQ3.DE) Fundamental Analysis & Valuation

FRA:SQ3 • US8522341036

Current stock price

51.75 EUR
+0.65 (+1.27%)
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.
  • In the past 5 years SQ3 always reported a positive cash flow from operatings.
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

  • The Return On Assets of SQ3 (3.30%) is better than 72.73% of its industry peers.
  • SQ3 has a Return On Equity (5.88%) which is comparable to the rest of the industry.
  • With a decent Return On Invested Capital value of 7.71%, SQ3 is doing good in the industry, outperforming 76.36% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SQ3 is below the industry average of 8.81%.
  • The 3 year average ROIC (4.43%) for SQ3 is below the current ROIC(7.71%), indicating increased profibility in the last year.
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

  • SQ3 has a Profit Margin of 5.40%. This is comparable to the rest of the industry: SQ3 outperforms 47.27% of its industry peers.
  • In the last couple of years the Profit Margin of SQ3 has grown nicely.
  • SQ3 has a Operating Margin (12.59%) which is in line with its industry peers.
  • SQ3's Operating Margin has improved in the last couple of years.
  • SQ3 has a Gross Margin (42.82%) which is in line with 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

  • SQ3 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, SQ3 has less shares outstanding
  • The number of shares outstanding for SQ3 has been increased compared to 5 years ago.
  • 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 2.61 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of SQ3 (2.61) is better than 72.73% of its industry peers.
  • The Debt to FCF ratio of SQ3 is 3.57, which is a good value as it means it would take SQ3, 3.57 years of fcf income to pay off all of its debts.
  • SQ3 has a better Debt to FCF ratio (3.57) 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 Debt to Equity ratio of 0.30. This is in the better half of the industry: SQ3 outperforms 61.82% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.57
Altman-Z 2.61
ROIC/WACC1.02
WACC7.58%
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.
  • SQ3 has a Current ratio of 2.20. This is in the better half of the industry: SQ3 outperforms 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%.
  • The Earnings Per Share has been growing by 23.65% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 0.30% in the past year.
  • The Revenue has been growing by 20.56% on average over the past years. This is a very strong growth!
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

  • SQ3 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.54% yearly.
  • 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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
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 25.24, the valuation of SQ3 can be described as expensive.
  • 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 26.21. SQ3 is around the same levels.
  • With a Price/Forward Earnings ratio of 16.94, SQ3 is valued correctly.
  • 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 23.10.
Industry RankSector Rank
PE 25.24
Fwd PE 16.94
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

  • Based on the Enterprise Value to EBITDA ratio, SQ3 is valued a bit cheaper than the industry average as 65.45% of the companies are valued more expensively.
  • 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 RankSector Rank
P/FCF 14.78
EV/EBITDA 10.74
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.
  • The decent profitability rating of SQ3 may justify a higher PE ratio.
  • A more expensive valuation may be justified as SQ3's earnings are expected to grow with 35.74% in the coming years.
PEG (NY)0.52
PEG (5Y)1.07
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 (4/7/2026, 7:00:00 PM)

51.75

+0.65 (+1.27%)

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 Cap31.00B
Revenue(TTM)24.19B
Net Income(TTM)1.31B
Analysts81.63
Price Target71.24 (37.66%)
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 25.24
Fwd PE 16.94
P/S 1.48
P/FCF 14.78
P/OCF 13.89
P/B 1.61
P/tB 3.95
EV/EBITDA 10.74
EPS(TTM)2.05
EY3.96%
EPS(NY)3.05
Fwd EY5.9%
FCF(TTM)3.5
FCFY6.77%
OCF(TTM)3.73
OCFY7.2%
SpS34.94
BVpS32.07
TBVpS13.1
PEG (NY)0.52
PEG (5Y)1.07
Graham Number38.46
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 2.61
F-Score6
WACC7.58%
ROIC/WACC1.02
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.