Block, Inc. (SQ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Workday, Inc.

Cisco Systems, Inc.

Fortinet, Inc.

Broadridge Financial Solutions, Inc.

Nu Holdings Ltd.

Cognizant Technology Solutions Corp.

Accenture Plc

CDW Corp.

Block, Inc.

International Business Machines Corp.

Cloudflare, Inc.

Why is Block, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 32.28% and Operating profit at 72.55%

The company has declared negative results in Mar'2025 after 5 consecutive positive quarters

NET PROFIT(Q) At USD 606.19 MM has Fallen at -30.78%
INVENTORY TURNOVER RATIO(HY) Lowest at 120.11 times
INTEREST(Q) Highest at USD 23.69 MM

With ROE of 16.17%, it has a attractive valuation with a 1.86 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -37.13%, its profits have risen by 121.5% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -37.13% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Block, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Block, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Block, Inc.

-37.13%

-0.06

54.65%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.28%

EBIT Growth (5y)

72.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.89

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

83.08%

ROCE (avg)

7.83%

ROE (avg)

9.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.86

EV to EBIT

18.73

EV to EBITDA

15.84

EV to Capital Employed

1.97

EV to Sales

1.57

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

10.50%

ROE (Latest)

16.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,206.22 MM

RAW MATERIAL COST(Y)

Fallen by -16.52% (YoY

NET PROFIT(9M)

Higher at USD 3,290.55 MM

OPERATING PROFIT(Q)

Highest at USD 871.82 MM

OPERATING PROFIT MARGIN(Q)

Highest at 14.4 %

PRE-TAX PROFIT(Q)

Highest at USD 742.35 MM

-10What is not working for the Company

NET PROFIT(Q)

At USD 606.19 MM has Fallen at -30.78%

INVENTORY TURNOVER RATIO(HY)

Lowest at 120.11 times

INTEREST(Q)

Highest at USD 23.69 MM

Here's what is working for Block, Inc.

Operating Cash Flow

Highest at USD 1,206.22 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit

Highest at USD 871.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 14.4 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 742.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 742.35 MM has Grown at 42.11%

over average net sales of the previous four periods of USD 522.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by -16.52% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Block, Inc.

Interest

At USD 23.69 MM has Grown at 37.37%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD 606.19 MM has Fallen at -30.78%

over average net sales of the previous four periods of USD 875.72 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

Highest at USD 23.69 MM

in the last five periods and Increased by 37.37% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 120.11 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio