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Block Inc Class A SQ

Morningstar Rating
$78.92 +10.96 (16.13%)
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Company Report

Block Earnings: Strong Finish to the Year

We think Block finished the year on a strong note. While growth for Cash App slowed sequentially, we think improving profitability is more important than growth at the moment, and results were positive on this front. We will maintain our $83 fair value estimate for the narrow-moat company. We see shares as undervalued but would stress our Morningstar Uncertainty Rating of Very High.

Price vs Fair Value

SQ is trading at a 5% discount.
Price
$78.92
Fair Value
$25.00
Uncertainty
Very High
1-Star Price
$532.52
5-Star Price
$23.10
Economic Moat
Tbtzsr
Capital Allocation
Ptzcpzbt

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
$67.96
Day Range
$78.4783.29
52-Week Range
$38.8583.29
Bid/Ask
$78.35 / $78.50
Market Cap
$48.46 Bil
Volume/Avg
53.4 Mil / 11.3 Mil

Key Statistics

Price/Earnings (Normalized)
43.16
Price/Sales
1.96
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.32%

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 2022, 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)
43.1611.5213.34
Price/Book Value
2.323.001.57
Price/Sales
1.962.193.77
Price/Cash Flow
37.5310.5812.49
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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