Square
Market Cap
US$102.2b
Last Updated
2021/01/20 23:23 UTC
Data Sources
Company Financials +
Executive Summary
Square, Inc. provides, together with its subsidiaries, payment and point-of-sale solutions in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with questionable track record.
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 +/- 8% a week.
Volatility Over Time: SQ's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-1.8%
SQ
-1.5%
US IT
0.3%
US Market
1 Year Return
230.0%
SQ
21.2%
US IT
21.1%
US Market
Return vs Industry: SQ exceeded the US IT industry which returned 21.2% over the past year.
Return vs Market: SQ exceeded the US Market which returned 21.1% over the past year.
Shareholder returns
| SQ | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | -1.5% | 0.3% |
| 30 Day | -2.9% | -2.7% | 3.3% |
| 90 Day | 28.8% | 8.7% | 14.2% |
| 1 Year | 230.0%230.0% | 22.4%21.2% | 23.8%21.1% |
| 3 Year | 411.4%411.4% | 85.2%78.1% | 45.0%35.4% |
| 5 Year | 2,404.4%2,404.4% | 211.4%189.9% | 127.7%102.3% |
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
Is Square (NYSE:SQ) Using Too Much Debt?2 months ago | Simply Wall St
Beneath the Surface of Square Inc’s (NYSE:SQ) Huge Revenue Beat Last Week2 months ago | Simply Wall St
Could The Square, Inc. (NYSE:SQ) Ownership Structure Tell Us Something Useful?Valuation
Is Square undervalued compared to its fair value and its price relative to the market?
319.75x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SQ ($226.65) is trading above our estimate of fair value ($65.18)
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 (319.8x) compared to the US IT industry average (36x).
PE vs Market: SQ is poor value based on its PE Ratio (319.8x) compared to the US market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: SQ is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: SQ is overvalued based on its PB Ratio (49.2x) compared to the US IT industry average (4.9x).
Next Steps
Future Growth
How is Square forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?
73.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQ's forecast earnings growth (73.7% per year) is above the savings rate (2%).
Earnings vs Market: SQ's earnings (73.7% per year) are forecast to grow faster than the US market (21.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SQ's revenue (20.7% per year) is forecast to grow faster than the US market (10.4% per year).
High Growth Revenue: SQ's revenue (20.7% per year) is forecast to grow faster 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 (26.2%)
Next Steps
Past Performance
How has Square performed over the past 5 years?
68.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SQ has a large one-off gain of $408.3M impacting its September 30 2020 financial results.
Growing Profit Margin: SQ became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SQ has become profitable over the past 5 years, growing earnings by 68.9% per year.
Accelerating Growth: SQ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SQ has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (4.2%).
Return on Equity
High ROE: SQ's Return on Equity (15%) is considered low.
Next Steps
Financial Health
How is Square's financial position?
Financial Position Analysis
Short Term Liabilities: SQ's short term assets ($6.5B) exceed its short term liabilities ($3.8B).
Long Term Liabilities: SQ's short term assets ($6.5B) exceed its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: SQ's debt to equity ratio (108.2%) is considered high.
Reducing Debt: SQ's debt to equity ratio has increased from 0% to 108.2% over the past 5 years.
Debt Coverage: SQ's debt is not well covered by operating cash flow (14.4%).
Interest Coverage: Insufficient data to determine if SQ's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
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?
4.4yrs
Average management tenure
CEO
Jack Dorsey (43 yo)
11.5yrs
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 ($USD10.54M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 11.5yrs | US$3.00 | 11.23% $ 11.5b | |
| CFO & Treasurer | 2yrs | US$13.08m | 0.023% $ 23.5m | |
| General Counsel & Corporate Secretary | 2.83yrs | US$4.46m | 0.015% $ 15.5m | |
| Head of Seller | 6.25yrs | US$6.33m | 0.073% $ 75.1m | |
| Chief Accounting Officer | 4.42yrs | no data | 0.0039% $ 4.0m | |
| Head of Investor Relations | no data | no data | no data | |
| Governance and Securities Counsel Lead | no data | no data | no data | |
| Assistant Secretary | no data | no data | no data | |
| Investor Relations Officer | no data | no data | no data |
4.4yrs
Average Tenure
43yo
Average Age
Experienced Management: SQ's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 11.5yrs | US$3.00 | 11.23% $ 11.5b | |
| Lead Independent Director | no data | US$382.93k | 0.021% $ 21.4m | |
| Independent Director | 10yrs | US$305.37k | 0.15% $ 157.1m | |
| Independent Director | 4.67yrs | US$309.93k | 0.0061% $ 6.2m | |
| Independent Director | 9.58yrs | US$312.43k | 0.055% $ 55.8m | |
| Independent Director | 9.58yrs | US$305.37k | 0.088% $ 90.1m | |
| Director | 0.58yr | no data | 0.000030% $ 30.7k | |
| Independent Director | 3.17yrs | US$302.19k | 0.0029% $ 3.0m | |
| Co-Founder & Independent Director | 11.5yrs | US$290.22k | 3.19% $ 3.3b | |
| Independent Director | 3.5yrs | US$292.43k | 0.0035% $ 3.6m | |
| Independent Director | 1.25yrs | US$166.62k | 0.00075% $ 766.5k |
4.7yrs
Average Tenure
55yo
Average Age
Experienced Board: SQ's board of directors are considered experienced (4.7 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.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.
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$102.205b
- Shares outstanding: 450.94m
- Website: https://www.squareup.com
Number of Employees
Location
- Square, Inc.
- 1455 Market Street
- Suite 600
- San Francisco
- California
- 94103
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SQ | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Nov 2015 |
| SQ3 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Nov 2015 |
| 0L95 | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Nov 2015 |
| SQ * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Nov 2015 |
| SQU | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Nov 2015 |
| SQ3 | ETLX (Eurotlx) | Yes | Class A Common Stock | IT | EUR | Nov 2015 |
Biography
Square, Inc. provides, together with its subsidiaries, payment and point-of-sale solutions in the United States and internationally. The company’s commerce ecosystem includes point-of-sale software and har...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 23:23 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.