BLOCK INC (XYZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYZ - US8522341036 - Common Stock
61.11 USD
+1 (+1.66%)
61.26 USD
+0.15 (+0.25%)
Overall XYZ gets a fundamental rating of 5 out of 10. We evaluated XYZ against 98 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
XYZ had positive earnings in the past year.
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
With an excellent Return On Assets value of 8.00%, XYZ belongs to the best of the industry, outperforming 84.69% of the companies in the same industry.
XYZ has a Return On Equity of 13.93%. This is in the better half of the industry: XYZ outperforms 73.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.27%, XYZ is in the better half of the industry, outperforming 70.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 13.93% | ||
| ROIC | 6.27% |
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
Looking at the Profit Margin, with a value of 13.08%, XYZ is in line with its industry, outperforming 58.16% of the companies in the same industry.
In the last couple of years the Profit Margin of XYZ has grown nicely.
The Operating Margin of XYZ (9.63%) is worse than 61.22% of its industry peers.
XYZ's Operating Margin has improved in the last couple of years.
The Gross Margin of XYZ (40.87%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of XYZ 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XYZ is destroying value.
XYZ has more shares outstanding than it did 1 year ago.
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 2.64. This is not the best score and indicates that XYZ is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.64, XYZ belongs to the best of the industry, outperforming 82.65% of the companies in the same industry.
The Debt to FCF ratio of XYZ is 4.25, which is a neutral value as it means it would take XYZ, 4.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of XYZ (4.25) is better than 68.37% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that XYZ is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, XYZ is doing good in the industry, outperforming 60.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.78
WACC8%
2.3 Liquidity
A Current Ratio of 2.18 indicates that XYZ has no problem at all paying its short term obligations.
The Current ratio of XYZ (2.18) is better than 77.55% of its industry peers.
XYZ has a Quick Ratio of 2.17. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of XYZ (2.17) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
XYZ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.86%.
XYZ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.32% yearly.
XYZ shows a small growth in Revenue. In the last year, the Revenue has grown by 0.47%.
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.
Based on estimates for the next years, XYZ will show a quite strong growth in Revenue. The Revenue will grow by 10.16% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 25.15, XYZ can be considered very expensive at the moment.
66.33% of the companies in the same industry are cheaper than XYZ, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.37. XYZ is around the same levels.
A Price/Forward Earnings ratio of 16.47 indicates a correct valuation of XYZ.
XYZ's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, XYZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XYZ is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as XYZ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.27 | ||
| EV/EBITDA | 13.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y4.94%
EPS Next 3Y11.79%
5. Dividend
5.1 Amount
XYZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.11
+1 (+1.66%)
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 Change-3.36%
Market Cap37.13B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts77.14
Price Target85.74 (40.3%)
Short Float %3.7%
Short Ratio2.74
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)-4.43%
PT rev (3m)-0.55%
EPS NQ rev (1m)-8.36%
EPS NQ rev (3m)-8.45%
EPS NY rev (1m)1.19%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-3.21%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 16.47 | ||
| P/S | 1.55 | ||
| P/FCF | 20.27 | ||
| P/OCF | 18.83 | ||
| P/B | 1.65 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 13.36 |
EPS(TTM)2.43
EY3.98%
EPS(NY)3.71
Fwd EY6.07%
FCF(TTM)3.01
FCFY4.93%
OCF(TTM)3.25
OCFY5.31%
SpS39.45
BVpS37.04
TBVpS15.43
PEG (NY)N/A
PEG (5Y)0.75
Graham Number45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 13.93% | ||
| ROCE | 7.94% | ||
| ROIC | 6.27% | ||
| ROICexc | 8.99% | ||
| ROICexgc | 25.48% | ||
| 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 | 2.64 |
F-Score7
WACC8%
ROIC/WACC0.78
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 / XYZ FAQ
Can you provide the ChartMill fundamental rating for BLOCK INC?
ChartMill assigns a fundamental rating of 5 / 10 to XYZ.
What is the valuation status for XYZ stock?
ChartMill assigns a valuation rating of 2 / 10 to BLOCK INC (XYZ). This can be considered as Overvalued.
How profitable is BLOCK INC (XYZ) stock?
BLOCK INC (XYZ) has a profitability rating of 5 / 10.
Can you provide the financial health for XYZ stock?
The financial health rating of BLOCK INC (XYZ) is 6 / 10.
What is the earnings growth outlook for BLOCK INC?
The Earnings per Share (EPS) of BLOCK INC (XYZ) is expected to decline by -21.7% in the next year.