Block, Inc.
Block, Inc. Fundamental Analysis
Block, Inc. (BSQKZ) shows weak financial fundamentals with a PE ratio of 40.01, profit margin of 3.30%, and ROE of 3.64%. The company generates $21.9B in annual revenue with weak year-over-year growth of 0.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
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
ModerateBSQKZ shows balanced valuation metrics.
Growth Score
WeakBSQKZ faces weak or negative growth trends.
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 40.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BSQKZ's PEG of -0.58 indicates potential undervaluation.
Price to Book
The market values Block, Inc. at 1.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.08 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 $3.30 as profit after all expenses.
Operating Margin
Core operations generate 11.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.64 in profit for every $100 of shareholder equity.
ROA
Block, Inc. generates $2.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Block, Inc. produces operating cash flow of $3.11B, showing steady but balanced cash generation.
Free Cash Flow
Block, Inc. generates strong free cash flow of $2.97B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.54 in free cash annually.
FCF Yield
BSQKZ converts 11.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.008
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How BSQKZ Stacks Against Its Sector Peers
| Metric | BSQKZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.01 | 36.71 | Neutral |
| ROE | 3.64% | 1025.00% | Weak |
| Net Margin | 3.30% | 5896804233.00% | Weak |
| Debt/Equity | 0.07 | 0.31 | Strong (Low Leverage) |
| Current Ratio | 1.99 | 5.00 | Neutral |
| ROA | 2.02% | -293517.00% (disorted) | Weak |
BSQKZ outperforms its industry in 1 out of 6 key metrics, 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
84.37%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
342.95%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
978.58%
Industry Style: Growth, Innovation, High Beta
High Growth