BLOCK INC (XYZ) Stock Fundamental Analysis
USA - NYSE:XYZ - US8522341036 - Common Stock
75.71 USD
-0.07 (-0.09%)
76 USD
+0.29 (+0.38%)
Overall XYZ gets a fundamental rating of 5 out of 10. We evaluated XYZ against 101 industry peers in the Financial Services industry. XYZ has only an average score on both its financial health and profitability. XYZ 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 XYZ was profitable.
In the past year XYZ had a positive cash flow from operations.
XYZ had positive earnings in 4 of the past 5 years.
In the past 5 years XYZ always reported a positive cash flow from operatings.
1.2 Ratios
XYZ has a Return On Assets of 8.03%. This is amongst the best in the industry. XYZ outperforms 85.15% of its industry peers.
XYZ has a Return On Equity of 13.35%. This is in the better half of the industry: XYZ outperforms 70.30% of its industry peers.
XYZ has a Return On Invested Capital of 6.05%. This is in the better half of the industry: XYZ outperforms 69.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROIC | 6.05% |
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 XYZ (12.41%) is comparable to the rest of the industry.
XYZ's Profit Margin has improved in the last couple of years.
XYZ has a Operating Margin of 8.60%. This is comparable to the rest of the industry: XYZ outperforms 40.59% of its industry peers.
In the last couple of years the Operating Margin of XYZ has grown nicely.
XYZ's Gross Margin of 39.38% is in line compared to the rest of the industry. XYZ outperforms 54.46% of its industry peers.
In the last couple of years the Gross Margin of XYZ has declined.
| 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
XYZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for XYZ has been increased compared to 1 year ago.
XYZ has more shares outstanding than it did 5 years ago.
The debt/assets ratio for XYZ is higher compared to a year ago.
2.2 Solvency
XYZ has an Altman-Z score of 3.15. This indicates that XYZ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.15, XYZ belongs to the top of the industry, outperforming 83.17% of the companies in the same industry.
XYZ has a debt to FCF ratio of 5.49. This is a neutral value as XYZ would need 5.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.49, XYZ is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
XYZ has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of XYZ (0.19) is better than 70.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.75
WACC8.08%
2.3 Liquidity
A Current Ratio of 1.96 indicates that XYZ should not have too much problems paying its short term obligations.
XYZ has a better Current ratio (1.96) than 77.23% of its industry peers.
XYZ has a Quick Ratio of 1.94. This is a normal value and indicates that XYZ is financially healthy and should not expect problems in meeting its short term obligations.
XYZ's Quick ratio of 1.94 is fine compared to the rest of the industry. XYZ outperforms 78.22% 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 XYZ have decreased by -0.36% in the last year.
Measured over the past years, XYZ 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, XYZ shows a small growth in Revenue. The Revenue has grown by 1.41% in the last year.
XYZ 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
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-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue Next Year1.32%
Revenue Next 2Y5.6%
Revenue Next 3Y6.81%
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.
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
Based on the Price/Earnings ratio of 27.33, the valuation of XYZ can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of XYZ indicates a slightly more expensive valuation: XYZ is more expensive than 64.36% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of XYZ to the average of the S&P500 Index (27.20), we can say XYZ is valued inline with the index average.
The Price/Forward Earnings ratio is 20.15, which indicates a rather expensive current valuation of XYZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XYZ indicates a slightly more expensive valuation: XYZ is more expensive than 61.39% of the companies listed in the same industry.
XYZ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 20.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as XYZ.
XYZ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.56 | ||
| EV/EBITDA | 18.58 |
4.3 Compensation for Growth
The decent profitability rating of XYZ may justify a higher PE ratio.
XYZ's earnings are expected to grow with 12.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y5.6%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
No dividends for XYZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
75.71
-0.07 (-0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners70.56%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner Change5.46%
Market Cap46.15B
Analysts77.08
Price Target88.24 (16.55%)
Short Float %3.83%
Short Ratio1.85
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)14.96%
PT rev (3m)27.46%
EPS NQ rev (1m)-5.91%
EPS NQ rev (3m)-9.88%
EPS NY rev (1m)-2.88%
EPS NY rev (3m)-11.12%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 20.15 | ||
| P/S | 1.94 | ||
| P/FCF | 43.56 | ||
| P/OCF | 38.26 | ||
| P/B | 2.08 | ||
| P/tB | 5.14 | ||
| EV/EBITDA | 18.58 |
EPS(TTM)2.77
EY3.66%
EPS(NY)3.76
Fwd EY4.96%
FCF(TTM)1.74
FCFY2.3%
OCF(TTM)1.98
OCFY2.61%
SpS39.1
BVpS36.35
TBVpS14.72
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 13.35% | ||
| ROCE | 7.65% | ||
| ROIC | 6.05% | ||
| ROICexc | 8.1% | ||
| ROICexgc | 23.75% | ||
| 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
ROICexcg growth 3Y19.01%
ROICexcg 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 | 3.15 |
F-Score8
WACC8.08%
ROIC/WACC0.75
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-21.15%
EPS Next 2Y5.6%
EPS Next 3Y12.71%
EPS Next 5Y14.3%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-1.64%
Revenue Next Year1.32%
Revenue Next 2Y5.6%
Revenue Next 3Y6.81%
Revenue Next 5Y10.16%
EBIT growth 1Y82.02%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.76%
EBIT Next 3Y61.21%
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%