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Square Inc A SQ

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Square Sees Strong Growth in Fourth Quarter, but Also Little Bottom Line Traction

Brett Horn, CFA Senior Equity Analyst

Analyst Note

| Brett Horn, CFA |

Narrow-moat Square reported a good fourth quarter and finished the year a little ahead of our expectations. However, we remain comfortable with our $78 fair value estimate, which we will maintain. While we recognize the uncertainty inherent in deriving a long-term valuation for a high-growth, scalable business that has yet to achieve sustainable profitability, we continue to believe the current market price implies a very optimistic view of Square’s long-term prospects.

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Company Profile

Business Description

Founded in 2009, Square provides payment acquiring services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. Square has operations in Canada, Japan, Australia, and the United Kingdom; about 5% of revenue is generated outside the U.S.

Contact
1455 Market Street, Suite 600
San Francisco, CA, 94103
T +1 415 375-3176
Sector Technology
Industry Software - Infrastructure
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Speculative Growth
Employees 5,477

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