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Square

NYSE:SQ
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SQ
NYSE
$32B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The last earnings update was 26 days ago. More info.


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  • Square has significant price volatility in the past 3 months.
SQ Share Price and Events
7 Day Returns
-0.2%
NYSE:SQ
-0.2%
US IT
-1.1%
US Market
1 Year Returns
40.2%
NYSE:SQ
21.5%
US IT
6.4%
US Market
SQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Square (SQ) -0.2% -1.3% 48% 40.2% 460.4% -
US IT -0.2% 4.1% 28.7% 21.5% 78.5% 97.6%
US Market -1.1% 0.3% 17.2% 6.4% 37.9% 42.1%
1 Year Return vs Industry and Market
  • SQ outperformed the IT industry which returned 21.5% over the past year.
  • SQ outperformed the Market in United States of America which returned 6.4% over the past year.
Price Volatility
SQ
Industry
5yr Volatility vs Market

Value

 Is Square undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Square to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Square.

NYSE:SQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 29 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.062 (1 + (1- 21%) (2.85%))
1.058
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.058 * 5.96%)
9.03%

Discounted Cash Flow Calculation for NYSE:SQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Square is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:SQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.03%)
2019 350.94 Analyst x6 321.86
2020 565.32 Analyst x6 475.52
2021 908.94 Analyst x4 701.19
2022 1,186.00 Analyst x1 839.12
2023 1,222.65 Analyst x2 793.37
2024 1,258.73 Est @ 2.95% 749.10
2025 1,295.03 Est @ 2.88% 706.84
2026 1,331.79 Est @ 2.84% 666.67
2027 1,369.15 Est @ 2.81% 628.58
2028 1,407.26 Est @ 2.78% 592.54
Present value of next 10 years cash flows $6,474.79
NYSE:SQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,407.26 × (1 + 2.73%) ÷ (9.03% – 2.73%)
$22,929.47
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $22,929.47 ÷ (1 + 9.03%)10
$9,654.71
NYSE:SQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,474.79 + $9,654.71
$16,129.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,129.51 / 419.69
$38.43
NYSE:SQ Discount to Share Price
Calculation Result
Value per share (USD) From above. $38.43
Current discount Discount to share price of $75.09
= -1 x ($75.09 - $38.43) / $38.43
-95.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Square is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Square's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Square's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.09
NYSE:SQ Share Price ** NYSE (2019-03-22) in USD $75.09
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 30.06x
United States of America Market PE Ratio Median Figure of 3,062 Publicly-Listed Companies 17.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Square.

NYSE:SQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SQ Share Price ÷ EPS (both in USD)

= 75.09 ÷ -0.09

-792.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Square is loss making, we can't compare its value to the US IT industry average.
  • Square is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Square's expected growth come at a high price?
Raw Data
NYSE:SQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -792.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts
43.4%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.39x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Square, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Square's assets?
Raw Data
NYSE:SQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.69
NYSE:SQ Share Price * NYSE (2019-03-22) in USD $75.09
United States of America IT Industry PB Ratio Median Figure of 122 Publicly-Listed IT Companies 4.4x
United States of America Market PB Ratio Median Figure of 5,165 Publicly-Listed Companies 1.85x
NYSE:SQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SQ Share Price ÷ Book Value per Share (both in USD)

= 75.09 ÷ 2.69

27.95x

* Primary Listing of Square.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Square is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Square's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Square has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Square expected to perform in the next 1 to 3 years based on estimates from 29 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
43.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Square expected to grow at an attractive rate?
  • Square's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Square's earnings growth is expected to exceed the United States of America market average.
  • Square's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SQ Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SQ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts 43.4%
NYSE:SQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts 10.4%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SQ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 6,686 854 2
2022-12-31 5,172 612 3
2021-12-31 4,097 993 386 10
2020-12-31 3,031 769 136 27
2019-12-31 2,255 562 -6 29
NYSE:SQ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,298 295 -38
2018-09-30 2,982 116 -26
2018-06-30 2,685 108 -62
2018-03-31 2,421 136 -72
2017-12-31 2,214 128 -63
2017-09-30 2,050 130 -62
2017-06-30 1,904 146 -79
2017-03-31 1,791 81 -90
2016-12-31 1,709 23 -172
2016-09-30 1,631 41 -237
2016-06-30 1,524 -1 -259
2016-03-31 1,396 18 -261

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Square's earnings are expected to grow significantly at over 20% yearly.
  • Square's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below

All data from Square Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SQ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.61 1.66 1.55 2.00
2022-12-31 1.07 1.12 1.01 2.00
2021-12-31 0.72 1.01 0.52 5.00
2020-12-31 0.24 0.44 0.14 11.00
2019-12-31 -0.03 0.01 -0.08 14.00
NYSE:SQ Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.09
2018-09-30 -0.06
2018-06-30 -0.16
2018-03-31 -0.19
2017-12-31 -0.17
2017-09-30 -0.17
2017-06-30 -0.22
2017-03-31 -0.26
2016-12-31 -0.50
2016-09-30 -0.76
2016-06-30 -0.98
2016-03-31 -1.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Square is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Square's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Square has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Square performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Square's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Square does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Square's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Square's 1-year growth to the US IT industry average as it is not currently profitable.
Earnings and Revenue History
Square's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Square Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SQ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,298.18 -38.45 745.69 497.48
2018-09-30 2,981.68 -25.91 674.08 448.30
2018-06-30 2,684.74 -61.65 603.40 395.08
2018-03-31 2,421.30 -71.71 549.66 358.40
2017-12-31 2,214.25 -62.81 503.72 321.89
2017-09-30 2,050.14 -62.32 463.02 294.14
2017-06-30 1,903.98 -78.54 431.00 282.02
2017-03-31 1,791.01 -89.93 400.10 272.53
2016-12-31 1,708.72 -171.59 377.87 268.54
2016-09-30 1,631.16 -236.91 359.01 262.83
2016-06-30 1,524.35 -258.52 337.26 247.44
2016-03-31 1,395.83 -260.79 308.79 224.69
2015-12-31 1,267.12 -212.02 289.08 199.64
2015-09-30 1,143.65 -168.60 261.12 180.12
2015-06-30 1,038.88 -152.34 234.27 164.59
2015-03-31 914.81 -162.39 220.67 151.44
2014-12-31 850.19 -154.09 206.30 144.64
2013-12-31 552.43 -104.49 132.90 82.86
2012-12-31 203.45 -85.20 92.83 46.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Square has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Square has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Square improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Square's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Square has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Square's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Square's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Square is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Square's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Square's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Square Company Filings, last reported 2 months ago.

NYSE:SQ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,120.50 899.70 1,124.16
2018-09-30 1,122.14 1,023.95 1,170.72
2018-06-30 1,081.63 1,071.44 1,621.58
2018-03-31 809.98 362.97 938.63
2017-12-31 786.33 358.57 866.05
2017-09-30 732.91 357.63 868.37
2017-06-30 703.74 353.74 920.28
2017-03-31 627.93 349.90 891.25
2016-12-31 576.15 0.00 511.93
2016-09-30 510.39 1.27 514.33
2016-06-30 471.46 0.09 403.43
2016-03-31 444.88 0.10 414.09
2015-12-31 508.05 0.00 461.33
2015-09-30 236.46 0.12 174.08
2015-06-30 262.05 30.13 197.94
2015-03-31 273.67 30.00 225.30
2014-12-31 273.67 30.00 225.30
2013-12-31 162.29 0.00 166.18
2012-12-31
  • Square's level of debt (80.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.1% vs 80.3% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Square has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Square has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -87.1% per year.
X
Financial health checks
We assess Square's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Square has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Square's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Square dividends. Estimated to be 0% next year.
If you bought $2,000 of Square shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Square's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Square's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 29 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SQ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Square has not reported any payouts.
  • Unable to verify if Square's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Square's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Square has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Square's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Square's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Square afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Square has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Square's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jack Dorsey
COMPENSATION $3
AGE 41
TENURE AS CEO 9.7 years
CEO Bio

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 Officer since September 30, 2015. He serves as an Adviser of Thrive Capital. He has extensive experience with technology companies. He also served as an Interim Chief Executive Officer of Twitter, Inc. from July 2015 to September 30, 2015. He served as Chief Executive Officer and President of Twitter, Inc. from May 2007 to October 2008. He served as an Advisor of Open Places (AKA Trazzler, Inc.). He serves as the Chairman of Square, Inc. He served as the Chairman of the Board of Twitter, Inc. from October 2008 to September 30, 2015. He has been a Director of Twitter, Inc. since May 2007. He served as an Independent Director of The Walt Disney Company from December 20, 2013 to March 8, 2018. He has been a Director of Square, Inc. since July 2009. Mr. Dorsey serves as a Member of Advisory Board of Techonomy Media Inc. Mr. Dorsey attended New York University and Missouri University of Science and Technology.

CEO Compensation
  • Jack's compensation has been consistent with company performance over the past year.
  • Jack's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Square management team in years:

3.4
Average Tenure
48
Average Age
  • The tenure for the Square management team is about average.
Management Team

Jack Dorsey

TITLE
Chairman
COMPENSATION
$3
AGE
41
TENURE
9.7 yrs

Jim McKelvey

TITLE
Co-Founder & Director
COMPENSATION
$290K
AGE
53

Alyssa Henry

TITLE
Seller Lead
COMPENSATION
$6M
AGE
48
TENURE
4.4 yrs

Jackie Reses

TITLE
Square Capital Lead
COMPENSATION
$4M
AGE
48
TENURE
3.4 yrs

Amrita Ahuja

TITLE
CFO & Treasurer
AGE
38
TENURE
0.2 yrs

Ajmere Dale

TITLE
Chief Accounting Officer
AGE
48
TENURE
2.6 yrs

Jason Lee

TITLE
Head of Investor Relations

Sivan Whiteley

TITLE
General Counsel & Corporate Secretary
AGE
41
TENURE
1 yrs

Aaron Zamost

TITLE
Communications & Policy Lead and People Lead

Kevin Burke

TITLE
Marketing & Sales Lead
AGE
56
TENURE
4.2 yrs
Board of Directors Tenure

Average tenure and age of the Square board of directors in years:

5.7
Average Tenure
56
Average Age
  • The tenure for the Square board of directors is about average.
Board of Directors

Jim McKelvey

TITLE
Co-Founder & Director
COMPENSATION
$290K
AGE
53
TENURE
9.7 yrs

Mary Meeker

TITLE
Director
COMPENSATION
$305K
AGE
59
TENURE
7.8 yrs

Jack Dorsey

TITLE
Chairman
COMPENSATION
$3
AGE
41

David Viniar

TITLE
Lead Independent Director
COMPENSATION
$383K
AGE
63

Ruth Simmons

TITLE
Director
COMPENSATION
$300K
AGE
73
TENURE
3.6 yrs

Roelof Botha

TITLE
Director
COMPENSATION
$305K
AGE
45
TENURE
8.2 yrs

Larry Summers

TITLE
Director
COMPENSATION
$300K
AGE
63
TENURE
7.8 yrs

Paul Deighton

TITLE
Director
COMPENSATION
$295K
AGE
62
TENURE
2.8 yrs

Randy Garutti

TITLE
Director
COMPENSATION
$248K
AGE
43
TENURE
1.7 yrs

Naveen Rao

TITLE
Director
COMPENSATION
$200K
AGE
42
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Dec 18 Sell Kleiner Perkins Caufield & Byers Company 03. Dec 18 03. Dec 18 -11,719 $71.43 $-837,088
X
Management checks
We assess Square's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Square has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

When Will Square, Inc. (NYSE:SQ) Turn A Profit?

The US$32b market-cap company announced a latest loss of -US$38.5m on 31 December 2018 for its most recent financial year result. … I’ve put together a brief outline of industry analyst expectations for SQ, its year of breakeven and its implied growth rate … See our latest analysis for Square

Simply Wall St -

What Kind Of Shareholder Appears On The Square, Inc.'s (NYSE:SQ) Shareholder Register?

Generally speaking, as a company grows, institutions will increase their ownership. … We'd expect to see both institutions and retail investors owning a portion of the company. … institutional investors have bought into the company

Simply Wall St -

Intrinsic Calculation For Square, Inc. (NYSE:SQ) Shows Investors Are Overpaying

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is Square Inc's (NYSE:SQ) Balance Sheet Strong Enough To Weather A Storm?

the key to their continued success lies in its financial health. … This article will examine Square’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

What Kind Of Shareholder Appears On The Square Inc's (NYSE:SQ) Shareholder Register?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We'd expect to see institutional investors on the register. … Companies of this size are usually well known to retail investors, too.

Simply Wall St -

Why Square Inc's (NYSE:SQ) Investor Composition Impacts Your Returns

In this article, I will take a quick look at Square Inc’s (NYSE:SQ) recent ownership structure – an unconventional investing subject, but an important one. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … It also impacts the trading environment of company shares, which is more of a concern for short-term investors.

Simply Wall St -

What Investors Should Know About Square Inc's (NYSE:SQ) Financial Strength

the key to their continued success lies in its financial health. … I will provide an overview of Square’s financial liquidity and leverage to give you an idea of Square’s position to take advantage of potential acquisitions or comfortably endure future downturns … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Is Square Inc (NYSE:SQ) Undervalued?

led the NYSE gainers with a relatively large price hike in the past couple of weeks. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

When Will Square Inc (NYSE:SQ) Turn A Profit?

The US$24.75b market-cap posted a loss in its most recent financial year of -US$62.81m and a latest trailing-twelve-month loss of -US$71.71m leading to an even wider gap between loss and breakeven. … Check out our latest analysis for Square … Expectation from IT analysts is SQ is on the verge of breakeven.

Simply Wall St -

Square Inc (NYSE:SQ): Has Recent Earnings Growth Beaten Long-Term Trend?

I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … For Square, its most recent bottom-line (trailing twelve month) is -US$71.71M, which, relative to last year’s figure, has become less negative. … Each year, for the last five years Square's top-line has increased by 29.48% on average, signalling that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses.

Simply Wall St -

Company Info

Description

Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company’s commerce ecosystem includes point-of-sale software and hardware that offers sellers to payment and point-of-sale solutions. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; Square Register that combines its hardware, point-of-sale software, and payments technology; Square Terminal, a portable payments device that replaces keypad terminals, which accepts various payment types, such as tap, dip, and swipe, as well as prints receipts; and managed payments solutions. The company also offers various software products, including Square Point of Sale, Square Appointments, Square for Retail, Square for Restaurants, Square Invoices, Virtual Terminal, Weebly, Square Dashboard, Square Loyalty and Marketing, and Square Payroll. In addition, it provides Cash App, which enables individuals to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup, delivery, and catering to their customers; and Square Capital that facilitates loans to sellers based on current payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.

Details
Name: Square, Inc.
SQ
Exchange: NYSE
Founded: 2009
$31,514,853,021
419,694,407
Website: http://www.squareup.com
Address: Square, Inc.
1455 Market Street,
Suite 600,
San Francisco,
California, 94103,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SQ Class A Common Stock New York Stock Exchange US USD 19. Nov 2015
DB SQ3 Class A Common Stock Deutsche Boerse AG DE EUR 19. Nov 2015
LSE 0L95 Class A Common Stock London Stock Exchange GB USD 19. Nov 2015
BMV SQ * Class A Common Stock Bolsa Mexicana de Valores MX MXN 19. Nov 2015
Number of employees
Current staff
Staff numbers
3,349
Square employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/25 00:38
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/21
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.