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Market Cap

US$117.6b

Last Updated

2021/09/19 22:08 UTC

Data Sources

Company Financials +

Executive Summary

Square, Inc., together with its subsidiaries, creates tools that enables sellers to accept card payments and provides reporting and analytics, and next-day settlement. More Details


Snowflake Analysis

High growth potential with acceptable 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 +/- 5% a week.

Volatility Over Time: SQ's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

SQ

-0.9%

US IT

-0.6%

US Market


1 Year Return

76.4%

SQ

25.7%

US IT

33.8%

US Market

Return vs Industry: SQ exceeded the US IT industry which returned 25.7% over the past year.

Return vs Market: SQ exceeded the US Market which returned 33.8% over the past year.


Shareholder returns

SQIndustryMarket
7 Day3.2%-0.9%-0.6%
30 Day-2.8%0.5%1.0%
90 Day9.4%0.4%3.4%
1 Year76.4%76.4%26.8%25.7%35.8%33.8%
3 Year199.9%199.9%77.7%72.1%60.0%50.1%
5 Year2,062.2%2,062.2%202.6%181.8%123.0%98.7%

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

Valuation

Is Square undervalued compared to its fair value and its price relative to the market?

205.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SQ ($255.79) is trading above our estimate of fair value ($142.48)

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 (205x) compared to the US IT industry average (34.4x).

PE vs Market: SQ is poor value based on its PE Ratio (205x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SQ is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: SQ is overvalued based on its PB Ratio (43.7x) compared to the US IT industry average (5.2x).


Future Growth

How is Square forecast to perform in the next 1 to 3 years based on estimates from 36 analysts?

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQ's forecast earnings growth (37.1% per year) is above the savings rate (2%).

Earnings vs Market: SQ's earnings (37.1% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SQ's revenue (14.5% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SQ's revenue (14.5% 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 (32.6%)


Past Performance

How has Square performed over the past 5 years?

74.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SQ has a large one-off gain of $257.0M impacting its June 30 2021 financial results.

Growing Profit Margin: SQ's current net profit margins (3.6%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: SQ has become profitable over the past 5 years, growing earnings by 74.3% per year.

Accelerating Growth: SQ's earnings growth over the past year (89.3%) exceeds its 5-year average (74.3% per year).

Earnings vs Industry: SQ earnings growth over the past year (89.3%) exceeded the IT industry 28%.


Return on Equity

High ROE: Whilst SQ's Return on Equity (20.94%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Square's financial position?


Financial Position Analysis

Short Term Liabilities: SQ's short term assets ($11.0B) exceed its short term liabilities ($5.6B).

Long Term Liabilities: SQ's short term assets ($11.0B) exceed its long term liabilities ($5.4B).


Debt to Equity History and Analysis

Debt Level: SQ's debt to equity ratio (207.2%) is considered high.

Reducing Debt: SQ's debt to equity ratio has increased from 0% to 207.2% over the past 5 years.

Debt Coverage: SQ's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: SQ's interest payments on its debt are well covered by EBIT (8.9x coverage).


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?

5.1yrs

Average management tenure


CEO

Jack Dorsey (44 yo)

12.17yrs

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 ($USD3.00) is below average for companies of similar size in the US market ($USD11.33M).

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 seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: SQ's board of directors are considered experienced (4.8 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 3.6%.


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$117.586b
  • Shares outstanding: 459.70m
  • 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 and provides reporting and analytics, and next-day settlement. It provides hardware products, includ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:08
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.