BLOCK INC (XYZ) Stock Fundamental Analysis
NYSE:XYZ - New York Stock Exchange, Inc. - US8522341036 - Common Stock - Currency: USD
Taking everything into account, XYZ scores 5 out of 10 in our fundamental rating. XYZ was compared to 102 industry peers in the Financial Services industry. XYZ has only an average score on both its financial health and profitability. XYZ is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year XYZ was profitable.
XYZ had a positive operating cash flow in the past year.
Of the past 5 years XYZ 4 years were profitable.
In the past 5 years XYZ always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.11%, XYZ is doing good in the industry, outperforming 65.69% of the companies in the same industry.
XYZ has a Return On Equity (5.67%) which is in line with its industry peers.
XYZ's Return On Invested Capital of 4.42% is fine compared to the rest of the industry. XYZ outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROIC | 4.42% |
ROA(3y)-0.2%
ROA(5y)1.96%
ROE(3y)0.66%
ROE(5y)6.36%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of XYZ (4.73%) is worse than 60.78% of its industry peers.
XYZ's Profit Margin has declined in the last couple of years.
XYZ has a Operating Margin of 6.18%. This is in the lower half of the industry: XYZ underperforms 61.76% of its industry peers.
In the last couple of years the Operating Margin of XYZ has grown nicely.
XYZ has a Gross Margin (36.06%) which is in line with its industry peers.
XYZ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.18% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.06% |
OM growth 3Y1.34%
OM growth 5Y2.41%
PM growth 3Y-72.91%
PM growth 5YN/A
GM growth 3Y5.97%
GM growth 5Y-2.83%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYZ is destroying value.
Compared to 1 year ago, XYZ has more shares outstanding
Compared to 5 years ago, XYZ has more shares outstanding
Compared to 1 year ago, XYZ has a worse debt to assets ratio.
2.2 Solvency
XYZ has an Altman-Z score of 3.08. 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 3.08, XYZ belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
XYZ has a debt to FCF ratio of 9.86. This is a negative value and a sign of low solvency as XYZ would need 9.86 years to pay back of all of its debts.
XYZ has a Debt to FCF ratio of 9.86. This is comparable to the rest of the industry: XYZ outperforms 50.98% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that XYZ is not too dependend on debt financing.
The Debt to Equity ratio of XYZ (0.30) is better than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.52
WACC8.55%
2.3 Liquidity
XYZ has a Current Ratio of 2.07. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
XYZ's Current ratio of 2.07 is fine compared to the rest of the industry. XYZ outperforms 75.49% of its industry peers.
XYZ has a Quick Ratio of 2.06. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
XYZ's Quick ratio of 2.06 is fine compared to the rest of the industry. XYZ outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
XYZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 99.36%, which is quite impressive.
XYZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.23% yearly.
Looking at the last year, XYZ shows a quite strong growth in Revenue. The Revenue has grown by 14.75% in the last year.
Measured over the past years, XYZ shows a very strong growth in Revenue. The Revenue has been growing by 46.05% on average per year.
EPS 1Y (TTM)99.36%
EPS 3Y29.72%
EPS 5Y31.23%
EPS Q2Q%60%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%6.38%
3.2 Future
Based on estimates for the next years, XYZ will show a very strong growth in Earnings Per Share. The EPS will grow by 33.78% on average per year.
The Revenue is expected to grow by 11.81% on average over the next years. This is quite good.
EPS Next Y98.93%
EPS Next 2Y60.28%
EPS Next 3Y46.35%
EPS Next 5Y33.78%
Revenue Next Year11.49%
Revenue Next 2Y11.46%
Revenue Next 3Y11.47%
Revenue Next 5Y11.81%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.50 indicates a quite expensive valuation of XYZ.
XYZ's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of XYZ to the average of the S&P500 Index (28.42), we can say XYZ is valued inline with the index average.
A Price/Forward Earnings ratio of 19.28 indicates a rather expensive valuation of XYZ.
XYZ's Price/Forward Earnings is on the same level as the industry average.
XYZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
XYZ's Enterprise Value to EBITDA is on the same level as the industry average.
XYZ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.63 | ||
| EV/EBITDA | 27.03 |
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.
A more expensive valuation may be justified as XYZ's earnings are expected to grow with 46.35% in the coming years.
PEG (NY)0.29
PEG (5Y)0.91
EPS Next 2Y60.28%
EPS Next 3Y46.35%
5. Dividend
5.1 Amount
No dividends for XYZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BLOCK INC
NYSE:XYZ (1/28/2025, 8:13:39 PM)
After market: 88.45 -0.19 (-0.21%)88.64
+3.63 (+4.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners69.84%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner ChangeN/A
Market Cap54.94B
Analysts79.62
Price TargetN/A
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 YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.67%
Min EPS beat(2)-0.18%
Max EPS beat(2)9.51%
EPS beat(4)2
Avg EPS beat(4)0.57%
Min EPS beat(4)-24.33%
Max EPS beat(4)17.26%
EPS beat(8)5
Avg EPS beat(8)1.85%
EPS beat(12)8
Avg EPS beat(12)8.67%
EPS beat(16)11
Avg EPS beat(16)24.55%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-5.19%
Max Revenue beat(2)-2.89%
Revenue beat(4)2
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)1.33%
Revenue beat(8)5
Avg Revenue beat(8)1.33%
Revenue beat(12)7
Avg Revenue beat(12)0.41%
Revenue beat(16)9
Avg Revenue beat(16)1.93%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 19.28 | ||
| P/S | 2.3 | ||
| P/FCF | 76.63 | ||
| P/OCF | 61.34 | ||
| P/B | 2.76 | ||
| P/tB | 8.77 | ||
| EV/EBITDA | 27.03 |
EPS(TTM)3.11
EY3.51%
EPS(NY)4.6
Fwd EY5.19%
FCF(TTM)1.16
FCFY1.31%
OCF(TTM)1.45
OCFY1.63%
SpS38.5
BVpS32.14
TBVpS10.11
PEG (NY)0.29
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 5.67% | ||
| ROCE | 5.6% | ||
| ROIC | 4.42% | ||
| ROICexc | 6.65% | ||
| ROICexgc | 30.21% | ||
| OM | 6.18% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.06% | ||
| FCFM | 3% |
ROA(3y)-0.2%
ROA(5y)1.96%
ROE(3y)0.66%
ROE(5y)6.36%
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 3Y-0.41%
ROICexcg growth 5Y5.31%
ROICexc growth 3Y-32.39%
ROICexc growth 5Y-14.18%
OM growth 3Y1.34%
OM growth 5Y2.41%
PM growth 3Y-72.91%
PM growth 5YN/A
GM growth 3Y5.97%
GM growth 5Y-2.83%
F-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 9.86 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 45.51% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 10.59 | ||
| Cash Conversion | 47.98% | ||
| Profit Quality | 63.5% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 3.08 |
F-Score7
WACC8.55%
ROIC/WACC0.52
Cap/Depr(3y)104.3%
Cap/Depr(5y)111.99%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)99.36%
EPS 3Y29.72%
EPS 5Y31.23%
EPS Q2Q%60%
EPS Next Y98.93%
EPS Next 2Y60.28%
EPS Next 3Y46.35%
EPS Next 5Y33.78%
Revenue 1Y (TTM)14.75%
Revenue growth 3Y32.14%
Revenue growth 5Y46.05%
Sales Q2Q%6.38%
Revenue Next Year11.49%
Revenue Next 2Y11.46%
Revenue Next 3Y11.47%
Revenue Next 5Y11.81%
EBIT growth 1Y302.85%
EBIT growth 3Y33.91%
EBIT growth 5Y49.57%
EBIT Next Year1780.32%
EBIT Next 3Y204.1%
EBIT Next 5Y109.97%
FCF growth 1Y329.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y175.67%
OCF growth 3Y-35.8%
OCF growth 5Y-19.31%