Skip to Content
Morningstar

Block Inc Class A SQ

Morningstar Rating
Unlock
Stock XNYS Rating as of
$64.31 +0.97 (1.53%)
View Full Chart
As of Cboe BZX Real-Time Price Open
Unlock Our Analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Block Earnings: Dorsey Lays Out Some Financial Targets

Brett Horn

We think third-quarter results for Block were solid, but not overly impressive. We are more encouraged by management’s comments and its willingness to lay out some longer-term financial targets. While CEO Jack Dorsey has talked about greater discipline when it comes to profitability, we’ve seen little actual progress and we like that the company is now providing discrete profitability targets. We will maintain our $83 fair value estimate for the narrow-moat company. We see shares as materially undervalued but would stress our Morningstar Uncertainty Rating of Very High.

Read Full Report

Price vs Fair Value

View History
SQ is trading at a 24% discount.
Price
$63.34
Fair Value
$48.00
Uncertainty
Very High
1-Star Price
$147.77
5-Star Price
$18.70
Economic Moat
Jbnzzxt
Capital Allocation
Rghnphy

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.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if SQ is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$63.34
Day Range
$63.62–65.11
52-Week Range
$38.85–84.74
Bid/Ask
$64.31 / $64.32
Market Cap
$39.50 Bil
Volume/Avg
9.3 Mil / 12.9 Mil

Key Statistics

Price/Earnings (Normalized)
40.56
Price/Sales
1.84
Dividend Yield
—
Dividend Yield (Forward)
—
Total Yield
—

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
12,428
Website
https://www.block.xyz

Competitors

Valuation

View More
Metric
SQ
GPN
FI
Price/Earnings (Normalized)
 40.5611.3417.56
Price/Book Value
 2.181.342.59
Price/Sales
 1.843.204.24
Price/Cash Flow
 35.2710.7013.43
Price/Earnings
SQ
GPN
FI

Financial Strength

Metric
SQ
GPN
FI
Quick Ratio
 1.730.490.16
Current Ratio
 1.911.091.07
Interest Coverage
 —2.655.07
Quick Ratio
SQ
GPN
FI

Profitability

Metric
SQ
GPN
FI
Return on Assets (Normalized)
 3.14%5.71%5.69%
Return on Equity (Normalized)
 5.62%11.99%15.02%
Return on Invested Capital (Normalized)
 4.19%7.89%9.83%
Return on Assets
SQ
GPN
FI

Software - Infrastructure Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
MSFT
Microsoft CorpGtsr$2.8 Tril
ORCL
Oracle CorpVnvwqld$318.4 Bil
ADBE
Adobe IncTkhh$283.8 Bil
PANW
Palo Alto Networks IncQsyz$87.6 Bil
SNPS
Synopsys IncSsffdh$82.7 Bil
CRWD
CrowdStrike Holdings Inc Class ASdfhf$50.7 Bil
PLTR
Palantir Technologies Inc Ordinary Shares - Class ATvvwyjx$42.9 Bil
FTNT
Fortinet IncQsrv$40.5 Bil
MDB
MongoDB Inc Class AKfmm$29.0 Bil