Square
Market Cap
US$116.4b
Last Updated
2021/04/19 22:40 UTC
Data Sources
Company Financials +
Executive Summary
Square, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments; also provide reporting and analytics, and next-day settlement. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has Square's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SQ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: SQ's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
-7.5%
SQ
1.0%
US IT
1.3%
US Market
1 Year Return
301.8%
SQ
58.8%
US IT
53.8%
US Market
Return vs Industry: SQ exceeded the US IT industry which returned 58.8% over the past year.
Return vs Market: SQ exceeded the US Market which returned 53.8% over the past year.
Shareholder returns
| SQ | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.5% | 1.0% | 1.3% |
| 30 Day | 9.1% | 7.8% | 5.1% |
| 90 Day | 8.0% | 10.5% | 8.9% |
| 1 Year | 301.8%301.8% | 60.4%58.8% | 56.6%53.8% |
| 3 Year | 387.2%387.2% | 108.4%100.8% | 64.4%53.6% |
| 5 Year | 1,705.2%1,705.2% | 211.6%190.5% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Square's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
How Much Of Square, Inc. (NYSE:SQ) Do Insiders Own?2 months ago | Simply Wall St
We're Not So Sure You Should Rely on Square's (NYSE:SQ) Statutory Earnings3 months ago | Simply Wall St
Is Square (NYSE:SQ) Using Too Much Debt?Valuation
Is Square undervalued compared to its fair value and its price relative to the market?
510.13x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SQ ($256.1) is trading above our estimate of fair value ($111.54)
Significantly Below Fair Value: SQ is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SQ is poor value based on its PE Ratio (532.5x) compared to the US IT industry average (39.7x).
PE vs Market: SQ is poor value based on its PE Ratio (532.5x) compared to the US market (22.4x).
Price to Earnings Growth Ratio
PEG Ratio: SQ is poor value based on its PEG Ratio (16x)
Price to Book Ratio
PB vs Industry: SQ is overvalued based on its PB Ratio (43.6x) compared to the US IT industry average (5.3x).
Future Growth
How is Square forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?
33.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQ's forecast earnings growth (33.3% per year) is above the savings rate (2%).
Earnings vs Market: SQ's earnings (33.3% per year) are forecast to grow faster than the US market (17.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SQ's revenue (18.5% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: SQ's revenue (18.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SQ's Return on Equity is forecast to be high in 3 years time (28%)
Past Performance
How has Square performed over the past 5 years?
71.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SQ has a large one-off gain of $295.3M impacting its December 31 2020 financial results.
Growing Profit Margin: SQ's current net profit margins (2.2%) are lower than last year (7.9%).
Past Earnings Growth Analysis
Earnings Trend: SQ has become profitable over the past 5 years, growing earnings by 71.1% per year.
Accelerating Growth: SQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SQ had negative earnings growth (-43.1%) over the past year, making it difficult to compare to the IT industry average (8.4%).
Return on Equity
High ROE: SQ's Return on Equity (7.9%) is considered low.
Financial Health
How is Square's financial position?
Financial Position Analysis
Short Term Liabilities: SQ's short term assets ($7.8B) exceed its short term liabilities ($4.1B).
Long Term Liabilities: SQ's short term assets ($7.8B) exceed its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: SQ's debt to equity ratio (113.8%) is considered high.
Reducing Debt: SQ had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: SQ's debt is not well covered by operating cash flow (12.5%).
Interest Coverage: Insufficient data to determine if SQ's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Square current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SQ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SQ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SQ's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SQ's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Jack Dorsey (43 yo)
11.75yrs
Tenure
US$3
Compensation
Mr. Jack Dorsey Co-founded Square, Inc. in February 2009 and has been its Chief Executive Officer and President since July 2009. Mr. Dorsey Co-founded Twitter, Inc. in 2006 and has been its Chief Executive...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD3.00) is below average for companies of similar size in the US market ($USD11.16M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SQ's management team is considered experienced (4.7 years average tenure).
Board Members
Experienced Board: SQ's board of directors are considered experienced (4.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.
Top Shareholders
Company Information
Square, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Square, Inc.
- Ticker: SQ
- Exchange: NYSE
- Founded: 2009
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$116.427b
- Shares outstanding: 454.61m
- Website: https://www.squareup.com
Number of Employees
Location
- Square, Inc.
- 1455 Market Street
- Suite 600
- San Francisco
- California
- 94103
- United States
Listings
Biography
Square, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments; also provide reporting and analytics, and next-day settlement. It provides hardware products, inclu...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 22:40 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.