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Block Inc Class A SQ

Morningstar Rating
$84.58 +1.40 (1.68%)
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Company Report

We Like Block's Focus on Improving Profitability

We think Block’s legacy Square business model, characterized by efficient client onboarding, innovative point-of-sale devices, flat fees, and an internally developed and integrated set of software solutions, allows the company to reach and retain micro merchants that are unviable for other acquirers. In essence, we believe Square's initial success came largely from expanding the acquiring market, as opposed to stealing material share from existing players.

Price vs Fair Value

SQ is trading within a range we consider fairly valued.
Price
$82.62
Fair Value
$43.00
Uncertainty
Very High
1-Star Price
$936.40
5-Star Price
$23.00
Economic Moat
Vshsvbk
Capital Allocation
Xbchtnqr

Bulls Say, Bears Say

Bulls

The ongoing shift toward electronic payments has created, and will continue to create, room for payments companies to see solid growth without stealing share from each other.

Bears

Square’s focus on micro and small merchants increases its macroeconomic sensitivity.

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News

Trading Information

Previous Close Price
$83.18
Day Range
$83.2084.92
52-Week Range
$38.8587.52
Bid/Ask
$84.62 / $84.68
Market Cap
$52.08 Bil
Volume/Avg
5.8 Mil / 10.7 Mil

Key Statistics

Price/Earnings (Normalized)
53.26
Price/Sales
2.33
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.31%

Company Profile

Founded in 2009, Block provides payment services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. In 2023, Square's payment volume was a little over $200 million.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
12,985

Competitors

Valuation

Metric
SQ
PYPL
GPN
Price/Earnings (Normalized)
53.2613.0312.65
Price/Book Value
2.743.391.49
Price/Sales
2.332.483.57
Price/Cash Flow
64.9611.9711.84
Price/Earnings
SQ
PYPL
GPN

Financial Strength

Metric
SQ
PYPL
GPN
Quick Ratio
1.631.240.39
Current Ratio
1.901.290.99
Interest Coverage
15.212.60
Quick Ratio
SQ
PYPL
GPN

Profitability

Metric
SQ
PYPL
GPN
Return on Assets (Normalized)
3.51%6.30%5.66%
Return on Equity (Normalized)
6.34%24.36%12.18%
Return on Invested Capital (Normalized)
4.64%15.74%7.94%
Return on Assets
SQ
PYPL
GPN
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