Block, Inc.
Block, Inc. Fundamental Analysis
Block, Inc. (BSQKZ) shows strong financial fundamentals with a PE ratio of 10.95, profit margin of 13.08%, and ROE of 14.35%. The company generates $21.5B in annual revenue with strong year-over-year growth of 10.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BSQKZ's fundamental strength across five key dimensions:
Efficiency Score
WeakBSQKZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBSQKZ trades at attractive valuation levels.
Growth Score
ExcellentBSQKZ delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBSQKZ maintains a strong and stable balance sheet.
Profitability Score
WeakBSQKZ struggles to sustain strong margins.
Key Financial Metrics
Is BSQKZ Expensive or Cheap?
P/E Ratio
BSQKZ trades at 10.95 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BSQKZ's PEG of 1.75 indicates fair valuation.
Price to Book
The market values Block, Inc. at 1.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.19 times EBITDA. This signals the market has high growth expectations.
How Well Does BSQKZ Make Money?
Net Profit Margin
For every $100 in sales, Block, Inc. keeps $13.08 as profit after all expenses.
Operating Margin
Core operations generate 5.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.35 in profit for every $100 of shareholder equity.
ROA
Block, Inc. generates $8.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Block, Inc. generates limited operating cash flow of $1.80B, signaling weaker underlying cash strength.
Free Cash Flow
Block, Inc. produces free cash flow of $1.67B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.06 in free cash annually.
FCF Yield
BSQKZ converts 6.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How BSQKZ Stacks Against Its Sector Peers
| Metric | BSQKZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.95 | 35.62 | Better (Cheaper) |
| ROE | 14.35% | 1160.00% | Weak |
| Net Margin | 13.08% | -136515.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 2.18 | 4.79 | Strong Liquidity |
| ROA | 8.00% | -311498.00% (disorted) | Weak |
BSQKZ outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Block, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
252.50%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
431.52%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
258.96%
Industry Style: Growth, Innovation, High Beta
High Growth