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Morningstar

Block Inc Class A SQ

Morningstar Rating
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Stock XNYS Rating as of
$70.12 −0.16 (0.23%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Block Earnings: Management Delivers on Promise to Improve Profitability

Brett Horn

Overall, we think Block delivered a solid quarter. While we are somewhat concerned with the relative performance of Block, Cash App growth stayed strong and management is delivering on its promise to improve profitability. We will maintain our $90 fair value estimate for the narrow-moat company. We see shares as somewhat undervalued but would emphasize our Morningstar Uncertainty Rating of Very High.

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Price vs Fair Value

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SQ is trading at a 22% discount.
Price
$70.30
Fair Value
$58.00
Uncertainty
Very High
1-Star Price
$125.70
5-Star Price
$97.00
Economic Moat
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Capital Allocation
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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.

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News

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Trading Information

Previous Close Price
$70.28
Day Range
$68.99–76.36
52-Week Range
$38.85–87.52
Bid/Ask
$70.12 / $70.15
Market Cap
$43.35 Bil
Volume/Avg
21.3 Mil / 9.8 Mil

Key Statistics

Price/Earnings (Normalized)
45.02
Price/Sales
1.90
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
0.36%

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 2023, Square's payment volume was a little over $200 million.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
12,985
Website
https://www.block.xyz

Competitors

Valuation

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Metric
SQ
PYPL
GPN
Price/Earnings (Normalized)
 45.0212.5410.28
Price/Book Value
 2.293.411.25
Price/Sales
 1.902.402.90
Price/Cash Flow
 54.4311.589.40
Price/Earnings
SQ
PYPL
GPN

Financial Strength

Metric
SQ
PYPL
GPN
Quick Ratio
 1.631.190.31
Current Ratio
 1.901.280.92
Interest Coverage
 —15.473.02
Quick Ratio
SQ
PYPL
GPN

Profitability

Metric
SQ
PYPL
GPN
Return on Assets (Normalized)
 7.16%6.86%5.57%
Return on Equity (Normalized)
 12.99%26.73%12.34%
Return on Invested Capital (Normalized)
 9.69%17.26%7.90%
Return on Assets
SQ
PYPL
GPN
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