BLOCK INC (SQ3.DE) Fundamental Analysis & Valuation

FRA:SQ3 • US8522341036

Current stock price

49.51 EUR
-1.89 (-3.68%)
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.
  • Each year in the past 5 years SQ3 had a positive operating cash flow.
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

  • With a decent Return On Assets value of 3.30%, SQ3 is doing good in the industry, outperforming 65.52% of the companies in the same industry.
  • SQ3 has a Return On Equity of 5.88%. This is comparable to the rest of the industry: SQ3 outperforms 56.90% of its industry peers.
  • With a decent Return On Invested Capital value of 7.71%, SQ3 is doing good in the industry, outperforming 70.69% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for SQ3 is significantly below the industry average of 10.88%.
  • The last Return On Invested Capital (7.71%) for SQ3 is above the 3 year average (4.43%), which is a sign of increasing profitability.
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

  • With a Profit Margin value of 5.40%, SQ3 perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
  • SQ3's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 12.59%, SQ3 is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SQ3 has grown nicely.
  • SQ3 has a Gross Margin (42.82%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of SQ3 has grown nicely.
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SQ3 is creating some value.
  • Compared to 1 year ago, SQ3 has less shares outstanding
  • Compared to 5 years ago, SQ3 has more shares outstanding
  • The debt/assets ratio for SQ3 is higher compared to a year ago.
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 2.56 indicates that SQ3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • SQ3 has a Altman-Z score of 2.56. This is in the better half of the industry: SQ3 outperforms 70.69% of its industry peers.
  • SQ3 has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as SQ3 would need 3.57 years to pay back of all of its debts.
  • SQ3's Debt to FCF ratio of 3.57 is fine compared to the rest of the industry. SQ3 outperforms 72.41% 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.
  • The Debt to Equity ratio of SQ3 (0.30) is better than 63.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.57
Altman-Z 2.56
ROIC/WACC1.01
WACC7.61%
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 74.14% of its industry peers.
  • A Quick Ratio of 2.19 indicates that SQ3 has no problem at all paying its short term obligations.
  • SQ3 has a better Quick ratio (2.19) than 75.86% 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

  • The earnings per share for SQ3 have decreased strongly by -29.67% in the last year.
  • The Earnings Per Share has been growing by 23.65% on average over the past years. This is a very strong growth
  • Looking at the last year, SQ3 shows a small growth in Revenue. The Revenue has grown by 0.30% in the last 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

  • Based on estimates for the next years, SQ3 will show a very strong growth in Earnings Per Share. The EPS will grow by 29.54% on average per year.
  • SQ3 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.39% yearly.
EPS Next Y48.93%
EPS Next 2Y40.93%
EPS Next 3Y35.74%
EPS Next 5Y29.54%
Revenue Next Year9.88%
Revenue Next 2Y10.1%
Revenue Next 3Y10.83%
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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • The Price/Earnings ratio is 24.03, which indicates a rather expensive current valuation of SQ3.
  • SQ3's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of SQ3 to the average of the S&P500 Index (24.88), we can say SQ3 is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 16.15, 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.
  • When comparing the Price/Forward Earnings ratio of SQ3 to the average of the S&P500 Index (22.19), we can say SQ3 is valued slightly cheaper.
Industry RankSector Rank
PE 24.03
Fwd PE 16.15
SQ3.DE Price Earnings VS Forward Price EarningsSQ3.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SQ3 indicates a somewhat cheap valuation: SQ3 is cheaper than 63.79% of the companies listed in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as SQ3.
Industry RankSector Rank
P/FCF 14.09
EV/EBITDA 10.25
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

  • SQ3's 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.
  • SQ3's earnings are expected to grow with 35.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)1.02
EPS Next 2Y40.93%
EPS Next 3Y35.74%

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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 (3/27/2026, 7:00:00 PM)

49.51

-1.89 (-3.68%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-26
Earnings (Next)04-29
Inst Owners81.27%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner ChangeN/A
Market Cap29.66B
Revenue(TTM)24.19B
Net Income(TTM)1.31B
Analysts80.41
Price Target71.24 (43.89%)
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)-0.03%
EPS NQ rev (3m)-6.54%
EPS NY rev (1m)3.9%
EPS NY rev (3m)3.83%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.7%
Valuation
Industry RankSector Rank
PE 24.03
Fwd PE 16.15
P/S 1.41
P/FCF 14.09
P/OCF 13.24
P/B 1.54
P/tB 3.76
EV/EBITDA 10.25
EPS(TTM)2.06
EY4.16%
EPS(NY)3.06
Fwd EY6.19%
FCF(TTM)3.51
FCFY7.1%
OCF(TTM)3.74
OCFY7.55%
SpS35.06
BVpS32.18
TBVpS13.15
PEG (NY)0.49
PEG (5Y)1.02
Graham Number38.62
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 2.56
F-Score6
WACC7.61%
ROIC/WACC1.01
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 Year9.88%
Revenue Next 2Y10.1%
Revenue Next 3Y10.83%
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.


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 24.03 and the Price/Book (PB) ratio is 1.54.


What is the financial health of BLOCK INC (SQ3.DE) stock?

The financial health rating of BLOCK INC (SQ3.DE) is 7 / 10.