BLOCK INC (XYZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XYZ - US8522341036 - Common Stock
61.11 USD
-1.08 (-1.74%)
61.1096 USD
0 (0%)
XYZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. XYZ has an average financial health and profitability rating. 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.
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
XYZ has a better Return On Assets (8.00%) than 83.67% of its industry peers.
Looking at the Return On Equity, with a value of 13.93%, XYZ is in the better half of the industry, outperforming 72.45% of the companies in the same industry.
The Return On Invested Capital of XYZ (6.27%) is better than 69.39% 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 in line with its industry peers.
In the last couple of years the Profit Margin of XYZ has grown nicely.
XYZ has a Operating Margin of 9.63%. This is in the lower half of the industry: XYZ underperforms 60.20% of its industry peers.
XYZ's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 40.87%, XYZ perfoms like the industry average, outperforming 58.16% 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
XYZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 2.64 indicates that XYZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.64, XYZ belongs to the top 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.
With a decent Debt to FCF ratio value of 4.25, XYZ is doing good in the industry, outperforming 66.33% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that XYZ is not too dependend on debt financing.
The Debt to Equity ratio of XYZ (0.27) is better than 60.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.78
WACC8.05%
2.3 Liquidity
A Current Ratio of 2.18 indicates that XYZ has no problem at all paying its short term obligations.
XYZ has a better Current ratio (2.18) than 77.55% of its industry peers.
A Quick Ratio of 2.17 indicates that XYZ has no problem at all paying its short term obligations.
XYZ has a better Quick ratio (2.17) 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%.
Measured over the past years, XYZ shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.32% on average per year.
The Revenue has been growing slightly by 0.47% in the past year.
XYZ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 38.62% yearly.
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
Based on estimates for the next years, XYZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.30% on average per year.
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
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
A Price/Earnings ratio of 25.15 indicates a quite expensive valuation of XYZ.
Based on the Price/Earnings ratio, XYZ is valued a bit more expensive than 66.33% 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 26.49, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.87, which indicates a rather expensive current valuation of XYZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XYZ indicates a slightly more expensive valuation: XYZ is more expensive than 60.20% of the companies listed in the same industry.
XYZ's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 17.87 |
4.2 Price Multiples
XYZ's Enterprise Value to EBITDA ratio is in line with the industry average.
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 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 |
61.11
-1.08 (-1.74%)
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 Cap37.13B
Revenue(TTM)23.97B
Net Income(TTM)3.14B
Analysts79.17
Price Target85.61 (40.09%)
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 | 25.15 | ||
| Fwd PE | 17.87 | ||
| 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)3.42
Fwd EY5.59%
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
WACC8.05%
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-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 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 -27.03% in the next year.