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 100 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 valued quite expensively, but it does show have an excellent growth rating. These ratings could make XYZ a good candidate for growth investing.
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.
Of the past 5 years XYZ 4 years were profitable.
Each year in the past 5 years XYZ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of XYZ (7.18%) is better than 85.00% of its industry peers.
XYZ has a better Return On Equity (12.18%) than 62.00% of its industry peers.
XYZ's Return On Invested Capital of 5.05% is fine compared to the rest of the industry. XYZ outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.18% | ||
| ROIC | 5.05% |
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
XYZ's Profit Margin of 10.92% is in line compared to the rest of the industry. XYZ outperforms 52.00% of its industry peers.
XYZ's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.40%, XYZ is not doing good in the industry: 63.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of XYZ has grown nicely.
XYZ has a Gross Margin of 37.95%. This is comparable to the rest of the industry: XYZ outperforms 56.00% of its industry peers.
In the last couple of years the Gross Margin of XYZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.4% | ||
| PM (TTM) | 10.92% | ||
| GM | 37.95% |
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 2.89. 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's Altman-Z score of 2.89 is amongst the best of the industry. XYZ outperforms 83.00% of its industry peers.
XYZ has a debt to FCF ratio of 4.78. This is a neutral value as XYZ would need 4.78 years to pay back of all of its debts.
XYZ has a better Debt to FCF ratio (4.78) than 70.00% 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 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.61
WACC8.34%
2.3 Liquidity
XYZ has a Current Ratio of 2.27. This indicates that XYZ is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.27, XYZ is doing good in the industry, outperforming 78.00% of the companies in the same industry.
A Quick Ratio of 2.26 indicates that XYZ has no problem at all paying its short term obligations.
XYZ has a better Quick ratio (2.26) than 79.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% over the past year.
The Earnings Per Share has been growing by 33.32% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.60% in the past year.
Measured over the past years, XYZ shows a very strong growth in Revenue. The Revenue has been growing by 38.62% on average per year.
EPS 1Y (TTM)37.5%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-34.12%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-3.11%
3.2 Future
The Earnings Per Share is expected to grow by 22.41% on average over the next years. This is a very strong growth
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-18.81%
EPS Next 2Y4.49%
EPS Next 3Y11.67%
EPS Next 5Y22.41%
Revenue Next Year2.36%
Revenue Next 2Y6.08%
Revenue Next 3Y6.95%
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 22.30, the valuation of XYZ can be described as rather expensive.
60.00% of the companies in the same industry are cheaper than XYZ, based on the Price/Earnings ratio.
XYZ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 18.67, the valuation of XYZ can be described as rather expensive.
62.00% of the companies in the same industry are cheaper than XYZ, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, XYZ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 18.67 |
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 | 35.27 | ||
| EV/EBITDA | 17.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y4.49%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
XYZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.68
+3.54 (+5.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners71.3%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner Change6.51%
Market Cap42.24B
Analysts80
Price Target70.89 (3.22%)
Short Float %3.99%
Short Ratio2.23
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)-27.92%
Min EPS beat(2)-36.25%
Max EPS beat(2)-19.6%
EPS beat(4)1
Avg EPS beat(4)-11.63%
Min EPS beat(4)-36.25%
Max EPS beat(4)9.51%
EPS beat(8)4
Avg EPS beat(8)-3.73%
EPS beat(12)7
Avg EPS beat(12)3.49%
EPS beat(16)9
Avg EPS beat(16)9.64%
Revenue beat(2)0
Avg Revenue beat(2)-6.45%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-5.07%
Revenue beat(4)0
Avg Revenue beat(4)-5.25%
Min Revenue beat(4)-7.83%
Max Revenue beat(4)-2.89%
Revenue beat(8)4
Avg Revenue beat(8)-1.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.2%
Revenue beat(16)7
Avg Revenue beat(16)-2.02%
PT rev (1m)2.39%
PT rev (3m)-25.53%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)-33.25%
EPS NY rev (1m)-8.48%
EPS NY rev (3m)-34.38%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-5.07%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-5.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.3 | ||
| Fwd PE | 18.67 | ||
| P/S | 1.76 | ||
| P/FCF | 35.27 | ||
| P/OCF | 31.26 | ||
| P/B | 1.97 | ||
| P/tB | 4.93 | ||
| EV/EBITDA | 17.33 |
EPS(TTM)3.08
EY4.48%
EPS(NY)3.68
Fwd EY5.36%
FCF(TTM)1.95
FCFY2.83%
OCF(TTM)2.2
OCFY3.2%
SpS38.92
BVpS34.91
TBVpS13.94
PEG (NY)N/A
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 12.18% | ||
| ROCE | 6.39% | ||
| ROIC | 5.05% | ||
| ROICexc | 7.07% | ||
| ROICexgc | 20.28% | ||
| OM | 7.4% | ||
| PM (TTM) | 10.92% | ||
| GM | 37.95% | ||
| FCFM | 5% |
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-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.78 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 41.87% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 8.75 | ||
| Cash Conversion | 63.22% | ||
| Profit Quality | 45.79% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 2.89 |
F-Score7
WACC8.34%
ROIC/WACC0.61
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)37.5%
EPS 3Y25.38%
EPS 5Y33.32%
EPS Q2Q%-34.12%
EPS Next Y-18.81%
EPS Next 2Y4.49%
EPS Next 3Y11.67%
EPS Next 5Y22.41%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y10.95%
Revenue growth 5Y38.62%
Sales Q2Q%-3.11%
Revenue Next Year2.36%
Revenue Next 2Y6.08%
Revenue Next 3Y6.95%
Revenue Next 5Y10.16%
EBIT growth 1Y162.01%
EBIT growth 3Y58.92%
EBIT growth 5Y61.5%
EBIT Next Year177.21%
EBIT Next 3Y59.24%
EBIT Next 5Y22.69%
FCF growth 1Y1415.77%
FCF growth 3Y41.91%
FCF growth 5Y30.96%
OCF growth 1Y460.98%
OCF growth 3Y26.28%
OCF growth 5Y29.67%