BLOCK INC (SQ3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SQ3 - US8522341036 - Common Stock
57.22 EUR
+0.68 (+1.2%)
We assign a fundamental rating of 5 out of 10 to SQ3. SQ3 was compared to 53 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
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.
1.2 Ratios
SQ3 has a better Return On Assets (8.00%) than 94.34% of its industry peers.
SQ3 has a Return On Equity of 13.93%. This is in the better half of the industry: SQ3 outperforms 75.47% of its industry peers.
SQ3's Return On Invested Capital of 5.59% is fine compared to the rest of the industry. SQ3 outperforms 71.70% 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
SQ3's Profit Margin of 13.08% is fine compared to the rest of the industry. SQ3 outperforms 64.15% of its industry peers.
In the last couple of years the Profit Margin of SQ3 has grown nicely.
SQ3 has a Operating Margin (9.63%) which is comparable to the rest of the industry.
SQ3's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.87%, SQ3 is in line with its industry, outperforming 49.06% of the companies in the same industry.
In the last couple of years the Gross Margin of SQ3 has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SQ3 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
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 73.58% of the companies in the same industry.
SQ3 has a debt to FCF ratio of 4.25. This is a neutral value as SQ3 would need 4.25 years to pay back of all of its debts.
SQ3 has a better Debt to FCF ratio (4.25) than 67.92% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that SQ3 is not too dependend on debt financing.
The Debt to Equity ratio of SQ3 (0.27) is better than 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.71
WACC7.82%
2.3 Liquidity
A Current Ratio of 2.18 indicates that SQ3 has no problem at all paying its short term obligations.
SQ3 has a Current ratio of 2.18. This is in the better half of the industry: SQ3 outperforms 73.58% 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 Quick ratio of 2.17. This is in the better half of the industry: SQ3 outperforms 75.47% 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.
The Earnings Per Share has been growing by 33.32% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.47% in the past 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
The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.16% on average over the next years. This is quite good.
EPS Next Y-21.7%
EPS Next 2Y4.94%
EPS Next 3Y11.79%
EPS Next 5Y14.3%
Revenue Next Year1.35%
Revenue Next 2Y5.55%
Revenue Next 3Y6.48%
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
With a Price/Earnings ratio of 27.25, SQ3 can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SQ3 is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.15, SQ3 is valued at the same level.
Based on the Price/Forward Earnings ratio of 17.85, 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.25 | ||
| Fwd PE | 17.85 |
4.2 Price Multiples
60.38% of the companies in the same industry are more expensive than SQ3, based on the Enterprise Value to EBITDA ratio.
SQ3's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.05 | ||
| EV/EBITDA | 14.4 |
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)0.82
EPS Next 2Y4.94%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
No dividends for SQ3!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:SQ3 (11/27/2025, 7:00:00 PM)
57.22
+0.68 (+1.2%)
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 Cap34.88B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts77.14
Price Target75.44 (31.84%)
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)0.24%
PT rev (3m)3.4%
EPS NQ rev (1m)-5.6%
EPS NQ rev (3m)-9.61%
EPS NY rev (1m)1.19%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-3.29%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.25 | ||
| Fwd PE | 17.85 | ||
| P/S | 1.68 | ||
| P/FCF | 22.05 | ||
| P/OCF | 20.47 | ||
| P/B | 1.79 | ||
| P/tB | 4.31 | ||
| EV/EBITDA | 14.4 |
EPS(TTM)2.1
EY3.67%
EPS(NY)3.21
Fwd EY5.6%
FCF(TTM)2.6
FCFY4.54%
OCF(TTM)2.8
OCFY4.88%
SpS33.97
BVpS31.89
TBVpS13.28
PEG (NY)N/A
PEG (5Y)0.82
Graham Number38.82
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 | 2.74 |
F-Score7
WACC7.82%
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-21.7%
EPS Next 2Y4.94%
EPS Next 3Y11.79%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year1.35%
Revenue Next 2Y5.55%
Revenue Next 3Y6.48%
Revenue Next 5Y10.16%
EBIT growth 1Y56.58%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year187.09%
EBIT Next 3Y61.68%
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.