Square
Market Cap
US$35.2b
Last Updated
2020/02/17 01:30 UTC
Data Sources
Company Financials +
Executive Summary
Square, Inc. provides payment and point-of-sale solutions in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with adequate 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.1%
SQ
2.1%
US IT
1.5%
US Market
1 Year Return
8.2%
SQ
37.2%
US IT
20.1%
US Market
Return vs Industry: SQ underperformed the US IT industry which returned 37.2% over the past year.
Return vs Market: SQ underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| SQ | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 2.1% | 1.5% |
| 30 Day | 18.0% | 4.4% | 1.4% |
| 90 Day | 23.3% | 13.9% | 8.7% |
| 1 Year | 8.2%8.2% | 38.6%37.2% | 22.7%20.1% |
| 3 Year | 465.7%465.7% | 112.3%103.1% | 50.1%40.5% |
| 5 Year | n/a | 148.0%125.8% | 73.1%54.1% |
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
1 week ago | Simply Wall St
Square (NYSE:SQ) Seems To Use Debt Quite Sensibly1 month ago | Simply Wall St
Imagine Holding Square (NYSE:SQ) Shares While The Price Zoomed 320% Higher2 months ago | Simply Wall St
What Kind Of Investor Owns Most Of Square, Inc. (NYSE:SQ)?Valuation
Is Square undervalued compared to its fair value and its price relative to the market?
20.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SQ ($81.86) is trading below our estimate of fair value ($103.42)
Significantly Below Fair Value: SQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SQ is unprofitable, so we can't compare its PE Ratio to the IT industry average.
PE vs Market: SQ is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SQ's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SQ is overvalued based on its PB Ratio (28.1x) compared to the US IT industry average (4.3x).
Next Steps
Future Growth
How is Square forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?
66.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: SQ is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: SQ's is expected to become profitable in the next 3 years.
Revenue vs Market: SQ's revenue (18.3% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: SQ's revenue (18.3% 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 very high in 3 years time (92%).
Next Steps
Past Performance
How has Square performed over the past 5 years?
33.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SQ is currently unprofitable.
Growing Profit Margin: SQ is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SQ is unprofitable, but has reduced losses over the past 5 years at a rate of 33.6% per year.
Accelerating Growth: Unable to compare SQ's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SQ is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12%).
Return on Equity
High ROE: SQ has a negative Return on Equity (-3.5%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Square's financial position?
Financial Position Analysis
Short Term Liabilities: SQ's short term assets ($2.8B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: SQ's short term assets ($2.8B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: SQ's debt to equity ratio (74.3%) is considered high.
Reducing Debt: SQ's debt to equity ratio has increased from 9.2% to 74.3% over the past 5 years.
Balance Sheet
Inventory Level: SQ has a low level of unsold assets or inventory.
Debt Coverage by Assets: SQ's debt is covered by short term assets (assets are 3x debt).
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.
Stable Cash Runway: Whilst unprofitable SQ has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: SQ is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 72.6% per year.
Next Steps
Dividend
What is Square's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate SQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate SQ's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
3.9yrs
Average management tenure
CEO
Jack Dorsey (42yo)
10.6yrs
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 ($USD10.81M).
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 | 10.6yrs | US$3.00 | 13.8% $4.9b | |
| General Counsel & Corporate Secretary | 1.9yrs | US$2.80m | 0.020% $7.1m | |
| Seller Lead | 5.3yrs | US$3.87m | 0.068% $23.8m | |
| Square Capital Lead | 4.3yrs | US$3.97m | 0.049% $17.3m | |
| CFO & Treasurer | 1.1yrs | no data | 0.025% $8.9m | |
| Chief Accounting Officer | 3.5yrs | no data | 0.0045% $1.6m | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Communications & Policy Lead and People Lead | 0yrs | no data | no data | |
| Assistant Secretary | 0yrs | no data | no data | |
| Investor Relations Officer | 0yrs | no data | no data |
3.9yrs
Average Tenure
45.5yo
Average Age
Experienced Management: SQ's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 10.6yrs | US$3.00 | 13.8% $4.9b | |
| Lead Independent Director | 0yrs | US$382.61k | 0.023% $8.0m | |
| Independent Director | 9.1yrs | US$305.12k | 0.085% $29.9m | |
| Independent Director | 3.8yrs | US$295.00k | 0.010% $3.6m | |
| Independent Director | 8.7yrs | US$300.89k | 0.057% $19.9m | |
| Independent Director | 8.7yrs | US$305.12k | 0.092% $32.2m | |
| Independent Director | 2.3yrs | US$299.99k | 0.0021% $749.2k | |
| Co-Founder & Independent Director | 10.6yrs | US$290.04k | 3.65% $1.3b | |
| Independent Director | 2.4yrs | US$294.99k | 0.0024% $844.2k | |
| Independent Director | 2.6yrs | US$292.50k | 0.0029% $1.0m |
6.2yrs
Average Tenure
54yo
Average Age
Experienced Board: SQ's board of directors are considered experienced (6.2 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 5.3%.
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$35.174b
- Shares outstanding: 429.68m
- 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:30 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.