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Square Inc A SQ

Morningstar Rating
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 Maintains Its Hot Hand in the First Quarter

Brett Horn, CFA Senior Equity Analyst

Analyst Note

| Brett Horn, CFA |

Although narrow-moat Square maintained its growth momentum in the first quarter and made some progress improving profitability, we remain comfortable with our $89 fair value estimate. We highlight the difficulty in estimating a long-term valuation for a high-growth, scalable business that has yet to demonstrate sustainable profitability, with this consideration being the primary driver behind our very high uncertainty rating. We continue to believe that the current market price reflects 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 Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Speculative Growth
Employees 5,477

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