Square, Inc. provides payment and point-of-sale solutions in the United States and internationally.
+ 1 more risk
Acceptable track record with mediocre balance sheet.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: SQ underperformed the US IT industry which returned -3.5% over the past year.
Return vs Market: SQ underperformed the US Market which returned -11.5% over the past year.
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 StWhat Type Of Shareholder Owns Square, Inc.'s (NYSE:SQ)?
1 month ago | Simply Wall StCalculating The Intrinsic Value Of Square, Inc. (NYSE:SQ)
1 month ago | Simply Wall StSquare (NYSE:SQ) Seems To Use Debt Quite Sensibly
Is Square undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SQ ($53.34) is trading below our estimate of fair value ($93.74)
Significantly Below Fair Value: SQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SQ is poor value based on its PE Ratio (60.4x) compared to the IT industry average (24.8x).
PE vs Market: SQ is poor value based on its PE Ratio (60.4x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: SQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SQ is overvalued based on its PB Ratio (13.5x) compared to the US IT industry average (2.7x).
How is Square forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SQ's earnings are forecast to decline over the next 3 years (-50.6% per year).
Earnings vs Market: SQ's earnings are forecast to decline over the next 3 years (-50.6% per year).
High Growth Earnings: SQ's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SQ's revenue (18.9% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: SQ's revenue (18.9% 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 (29%)
How has Square performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SQ has a large one-off gain of $370.8M impacting its December 31 2019 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 45.7% 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 (14.3%).
Return on Equity
High ROE: SQ's Return on Equity (21.9%) is considered high.
How is Square's financial position?
Financial Position Analysis
Short Term Liabilities: SQ's short term assets ($3.2B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: SQ's short term assets ($3.2B) exceed its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: SQ's debt to equity ratio (54.7%) is considered high.
Reducing Debt: SQ's debt to equity ratio has increased from 11% to 54.7% over the past 5 years.
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 3.4x 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: SQ is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: SQ is profitable, therefore cash runway is not a concern.
What is Square's 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 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jack Dorsey (42yo)
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 ($USD11.74M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
|General Counsel & Corporate Secretary||2yrs||US$2.80m||0.019% $4.6m|
|Seller Lead||5.42yrs||US$3.87m||0.067% $16.3m|
|Square Capital Lead||4.42yrs||US$3.97m||0.049% $11.8m|
|CFO & Treasurer||1.17yrs||no data||0.025% $6.1m|
|Chief Accounting Officer||3.58yrs||no data||0.0037% $890.1k|
|Head of Investor Relations||no data||no data||no data|
|Communications & Policy Lead and People Lead||no data||no data||no data|
|Assistant Secretary||no data||no data||no data|
|Investor Relations Officer||no data||no data||no data|
Experienced Management: SQ's management team is considered experienced (4 years average tenure).
|Lead Independent Director||no data||US$382.61k||0.023% $5.5m|
|Independent Director||9.17yrs||US$305.12k||0.12% $29.9m|
|Independent Director||3.83yrs||US$295.00k||0.010% $2.5m|
|Independent Director||8.75yrs||US$300.89k||0.056% $13.6m|
|Independent Director||8.75yrs||US$305.12k||0.090% $22.0m|
|Independent Director||2.33yrs||US$299.99k||0.0021% $512.1k|
|Co-Founder & Independent Director||10.67yrs||US$290.04k||3.61% $879.8m|
|Independent Director||2.5yrs||US$294.99k||0.0024% $578.0k|
|Independent Director||2.67yrs||US$292.50k||0.0029% $699.9k|
Experienced Board: SQ's board of directors are considered experienced (6.3 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.
Square, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Square, Inc.
- Ticker: SQ
- Exchange: NYSE
- Founded: 2009
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$24.386b
- Shares outstanding: 435.23m
- Website: https://www.squareup.com
Number of Employees
- Square, Inc.
- 1455 Market Street
- Suite 600
- San Francisco
- United States
|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|
|SQ3||BRSE (Berne Stock Exchange)||Yes||Class A Common Stock||CH||CHF||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|
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||2020/03/28 03:14|
|End of Day Share Price||2020/03/27 00:00|
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.