BLOCK INC (XYZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYZ - US8522341036 - Common Stock
66.05 USD
+1.11 (+1.71%)
65.96 USD
-0.09 (-0.14%)
We assign a fundamental rating of 5 out of 10 to XYZ. XYZ was compared to 99 industry peers in the Financial Services industry. Both the profitability and the financial health of XYZ get a neutral evaluation. Nothing too spectacular is happening here. XYZ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year XYZ was profitable.
XYZ had a positive operating cash flow in the past year.
XYZ had positive earnings in 4 of the past 5 years.
Each year in the past 5 years XYZ had a positive operating cash flow.
1.2 Ratios
XYZ has a Return On Assets of 8.00%. This is amongst the best in the industry. XYZ outperforms 83.84% of its industry peers.
With a decent Return On Equity value of 13.93%, XYZ is doing good in the industry, outperforming 72.73% 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 69.70% 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 (13.08%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of XYZ has grown nicely.
The Operating Margin of XYZ (9.63%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of XYZ has grown nicely.
XYZ has a Gross Margin (40.87%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XYZ is destroying value.
XYZ has more shares outstanding than it did 1 year ago.
The number of shares outstanding for XYZ has been increased compared to 5 years ago.
The debt/assets ratio for XYZ is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.74 indicates that XYZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
XYZ has a Altman-Z score of 2.74. This is amongst the best in the industry. XYZ outperforms 82.83% 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.
XYZ has a better Debt to FCF ratio (4.25) than 66.67% of its industry peers.
XYZ has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of XYZ (0.27) is better than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.77
WACC8.1%
2.3 Liquidity
XYZ has a Current Ratio of 2.18. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.18, XYZ is doing good in the industry, outperforming 77.78% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 2.17, XYZ is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
| 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
XYZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.30% yearly.
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-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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 27.18, the valuation of XYZ can be described as expensive.
Based on the Price/Earnings ratio, XYZ is valued a bit more expensive than the industry average as 64.65% of the companies are valued more cheaply.
XYZ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 19.32, XYZ is valued on the expensive side.
XYZ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. XYZ is more expensive than 60.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of XYZ to the average of the S&P500 Index (24.03), we can say XYZ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
XYZ's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XYZ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.91 | ||
| EV/EBITDA | 14.49 |
4.3 Compensation for Growth
The decent profitability rating of XYZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.82
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 | 0% |
66.05
+1.11 (+1.71%)
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-4.07%
Market Cap40.14B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price TargetN/A
Short Float %4.06%
Short Ratio2.91
Dividend
| Industry Rank | Sector 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)-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)-2.98%
EPS NQ rev (1m)-3.69%
EPS NQ rev (3m)-10.52%
EPS NY rev (1m)-6.81%
EPS NY rev (3m)-7.46%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.18 | ||
| Fwd PE | 19.32 | ||
| P/S | 1.67 | ||
| P/FCF | 21.91 | ||
| P/OCF | 20.35 | ||
| P/B | 1.78 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 14.49 |
EPS(TTM)2.43
EY3.68%
EPS(NY)3.42
Fwd EY5.18%
FCF(TTM)3.01
FCFY4.56%
OCF(TTM)3.25
OCFY4.91%
SpS39.45
BVpS37.04
TBVpS15.43
PEG (NY)N/A
PEG (5Y)0.82
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 | 2.74 |
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.