BLOCK INC (XYZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYZ - US8522341036 - Common Stock
63.29 USD
+1.72 (+2.79%)
62.7925 USD
-0.5 (-0.79%)
We assign a fundamental rating of 5 out of 10 to XYZ. XYZ was compared to 97 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.
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
The Return On Assets of XYZ (8.00%) is better than 83.51% of its industry peers.
With a decent Return On Equity value of 13.93%, XYZ is doing good in the industry, outperforming 72.16% of the companies in the same industry.
XYZ has a Return On Invested Capital of 6.27%. This is in the better half of the industry: XYZ outperforms 69.07% of its industry peers.
| 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
XYZ has a Profit Margin of 13.08%. This is comparable to the rest of the industry: XYZ outperforms 57.73% of its industry peers.
XYZ's Profit Margin has improved in the last couple of years.
XYZ has a Operating Margin (9.63%) which is in line with its industry peers.
In the last couple of years the Operating Margin of XYZ has grown nicely.
With a Gross Margin value of 40.87%, XYZ perfoms like the industry average, outperforming 57.73% of the companies in the same 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.
Compared to 1 year ago, XYZ has more shares outstanding
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 2.65. 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.
XYZ has a better Altman-Z score (2.65) than 82.47% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.25, XYZ is in the better half of the industry, outperforming 65.98% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that XYZ is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.27, XYZ perfoms like the industry average, outperforming 59.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.77
WACC8.1%
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 77.32% of its industry peers.
A Quick Ratio of 2.17 indicates that XYZ has no problem at all paying its short term obligations.
The Quick ratio of XYZ (2.17) is better than 78.35% 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%.
The Earnings Per Share has been growing by 33.32% on average over the past years. This is a very strong growth
Looking at the last year, XYZ shows a small growth in Revenue. The Revenue has grown by 0.47% in the last 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.
XYZ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.16% yearly.
EPS Next Y-27.03%
EPS Next 2Y0.72%
EPS Next 3Y9.71%
EPS Next 5Y14.3%
Revenue Next Year-0.11%
Revenue Next 2Y4.74%
Revenue Next 3Y6.8%
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
A Price/Earnings ratio of 26.05 indicates a quite expensive valuation of XYZ.
XYZ's Price/Earnings ratio is a bit more expensive when compared to the industry. XYZ is more expensive than 65.98% of the companies in the same industry.
XYZ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.51, XYZ is valued on the expensive side.
60.82% of the companies in the same industry are cheaper than XYZ, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of XYZ to the average of the S&P500 Index (23.80), we can say XYZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
XYZ's Enterprise Value to EBITDA ratio is in line with the industry average.
XYZ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21 | ||
| EV/EBITDA | 13.47 |
4.3 Compensation for Growth
The decent profitability rating of XYZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y0.72%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
XYZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.29
+1.72 (+2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners81.16%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner Change-3.25%
Market Cap38.46B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price Target85.61 (35.27%)
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)-5.12%
PT rev (3m)-1.38%
EPS NQ rev (1m)-6%
EPS NQ rev (3m)-8.97%
EPS NY rev (1m)-6.81%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)-1.3%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 18.51 | ||
| P/S | 1.6 | ||
| P/FCF | 21 | ||
| P/OCF | 19.5 | ||
| P/B | 1.71 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 13.47 |
EPS(TTM)2.43
EY3.84%
EPS(NY)3.42
Fwd EY5.4%
FCF(TTM)3.01
FCFY4.76%
OCF(TTM)3.25
OCFY5.13%
SpS39.45
BVpS37.04
TBVpS15.43
PEG (NY)N/A
PEG (5Y)0.78
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 | 2.65 |
F-Score7
WACC8.1%
ROIC/WACC0.77
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-27.03%
EPS Next 2Y0.72%
EPS Next 3Y9.71%
EPS Next 5Y14.3%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%2.33%
Revenue Next Year-0.11%
Revenue Next 2Y4.74%
Revenue Next 3Y6.8%
Revenue Next 5Y10.16%
EBIT growth 1Y56.58%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year182.52%
EBIT Next 3Y61.09%
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 6 / 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 -27.03% in the next year.