Square Inc Stock Research

Market Summary

USD75.09+1.02

Delayed

1.38%

SQ Alerts

2 major insider sales recently.
Big fall in earnings (Y/Y)
Losses in recent quarter

SQ Stock Price

SQ RSI Chart

SQ Valuation

Market Cap

44.5B

Price/Earnings (Trailing)

-82.3

Price/Sales (Trailing)

2.54

EV/EBITDA

-153.09

Price/Free Cashflow

8.7K

SQ Price/Sales (Trailing)

SQ Profitability

Operating Margin

34.18%

EBT Margin

-3.22%

Return on Equity

-3.14%

Return on Assets

-1.72%

Free Cashflow Yield

0.01%

SQ Fundamentals

SQ Revenue

Revenue (TTM)

17.5B

Revenue Y/Y

14.03%

Revenue Q/Q

SQ Earnings

Earnings (TTM)

-540.7M

Earnings Y/Y

-48.15%

Earnings Q/Q

-673.73%

Price Action

52 Week Range

51.34149.00

(Low)(High)

Last 7 days

-5.0%

Last 30 days

-3.6%

Last 90 days

12.4%

Trailing 12 Months

-28.1%

SQ Financial Health

Current Ratio

1.85

SQ Investor Care

Shares Dilution (1Y)

28.66%

Diluted EPS (TTM)

-0.93

Peers (Alternatives to Square)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
ADP	89.4B	17.2B	-6.21%	0.92%	28.42	5.19	9.88%	14.66%
FISV	70.0B	17.7B	-6.17%	14.47%	27.68	3.95	9.31%	89.66%
SQ	44.5B	17.5B	-3.58%	-28.15%	-82.3	2.54	-0.73%	-425.19%
CTSH	29.7B	19.4B	-15.50%	-34.47%	12.98	1.53	4.98%	7.16%
VRSN	20.4B	1.4B	-9.85%	-6.11%	30.35	14.35	7.33%	-14.14%
MID-CAP
CACI	6.7B	6.5B	-6.29%	-5.62%	18.33	1.03	6.38%	-16.32%
SAIC	5.7B	7.5B	-2.29%	18.08%	21.29	0.76	2.58%	-9.12%
DXC	5.4B	14.8B	-21.29%	-25.03%	7.52	0.36	-10.79%	217.70%
SMALL-CAP
FSLY	2.0B	432.7M	15.63%	6.35%	-10.5	4.63	22.12%	14.33%
CSGS	1.6B	1.1B	-17.43%	-18.78%	36.68	1.48	4.13%	-39.09%
SABR	1.3B	2.5B	-42.49%	-58.08%	-3.03	0.52	50.22%	53.10%
TCX	257.5M	324.7M	-28.83%	-63.85%	-16	0.79	10.96%	-317.50%
UIS	233.9M	2.0B	-37.32%	-83.97%	-2.21	0.12	-3.63%	76.37%
INOD	193.8M	79.0M	12.39%	27.29%	-16.23	2.45	13.25%	-613.39%
BCOV	191.4K	211.0M	-33.86%	-33.86%	-0.02	9e-4	-0.04%	-267.04%

Financials for Square

Income Statement (Last 12 Months)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	3.4%	17,531,587,000	16,959,219,000	16,288,405,000	16,564,578,000	17,661,203,000
Gross Profit	8.7%	5,991,892,000	5,513,740,000	5,079,866,000	4,751,282,000	4,419,823,000
S&GA Expenses	2.7%	2,057,951,000	2,003,005,000	1,926,240,000	1,769,291,000	1,617,189,000
R&D Expenses	9.6%	2,135,612,000	1,948,968,000	1,761,660,000	1,560,892,000	1,383,841,000
EBITDA	8.9%	-261,022,000	-286,546,000	-310,913,000	15,129,000	259,095,000
EBITDA Margin	11.9%	-0.01	-0.02	-0.02	0.00	0.01
Earnings Before Taxes	-7.2%	-565,317,000	-527,458,000	-493,849,000	-91,558,000	157,462,000
EBT Margin	-3.7%	-0.03	-0.03	-0.03	-0.01	0.01
Interest Expenses	24.1%	-36,228,000	-47,754,000	-55,121,000	-48,619,000	-33,124,000
Net Income	-6.4%	-540,747,000	-508,180,000	-493,385,000	-80,430,000	166,284,000
Net Income Margin	-2.9%	-0.03	-0.03	-0.03	0.00	0.01
Free Cahsflow	-97.0%	5,088,000	166,887,000	563,361,000	1,033,636,000	713,510,000

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	7.7%	31,364	29,121	28,885	29,127	15,026
Current Assets	15.3%	15,623	13,549	12,526	11,861	11,622
Cash Equivalents	4.9%	4,544	4,332	4,020	3,994	4,444
Net PPE	16.7%	329	282	-	-	-
Goodwill	3.5%	11,967	11,558	11,982	12,429	519
Liabilities	12.1%	14,113	12,591	11,994	11,677	11,713
Current Liabilities	15.9%	8,435	7,279	6,961	6,030	6,536
LT Debt, Current	0.0%	460	460	0.00	-	-
LT Debt, Non Current	-9.9%	4,110	4,559	-	-	-
Shareholder's Equity	4.4%	17,223	16,498	16,891	17,450	3,273
Retained Earnings	-25.0%	-568	-454	-440	-232	-27.96
Additional Paid-In Capital	1.8%	18,315	17,999	17,725	17,427	3,317
Shares Outstanding	1.9%	593	581	541	-	-
Minority Interest	-11.8%	28.00	32.00	36.00	38.00	41.00

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	-45.9%	176	325	716	1,106	848
Share Based Compensation	10.1%	1,071	973	875	765	608
Cashflow From Investing	-15.5%	1,226	1,451	962	-22.24	-1,310
Cashflow From Financing	111.6%	98.00	-839	-1,509	564	2,652

Risks for SQ

What is the probability of a big loss on SQ?

100%

Probability that Square stock will be more than 20% underwater in next one year

65%

Probability that Square stock will be more than 30% underwater in next one year.

59.6%

Probability that Square stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does SQ drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Square was unfortunately bought at previous high price.

Drawdowns

Returns for SQ

Cumulative Returns on SQ

29.9%

7-Year Cumulative Returns

6.2%

5-Year Cumulative Returns

8.6%

3-Year Cumulative Returns

What are the long-term rolling returns for SQ?

FIve years rolling returns for Square.

Annualized Returns

Which funds bought or sold SQ recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	reduced	-15.54	-41,052	1,110,950	0.03%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-10.95	410,413	23,664,400	0.03%
2023-03-10	BAILLIE GIFFORD & CO	reduced	-0.92	1,117,290	9,572,290	0.01%
2023-03-06	Rockefeller Capital Management L.P.	added	11.63	1,859,000	8,601,000	0.04%
2023-03-06	Rockefeller Capital Management L.P.	sold off	-100	-3,000	-	-%
2023-03-02	OLIVER LAGORE VANVALIN INVESTMENT GROUP	reduced	-23.65	-12,062	80,938	0.05%
2023-03-02	LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS LLP/MA	new	-	6,284	6,284	-%
2023-03-01	Regal Investment Advisors LLC	reduced	-12.95	-3,802	637,198	0.06%
2023-02-28	Voya Investment Management LLC	reduced	-2.53	-208,747,000	183,635,000	0.26%
2023-02-27	Parallax Volatility Advisers, L.P.	reduced	-46.61	-3,013,000	4,713,000	0.01%

Latest Funds Activity

Are funds buying SQ calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own SQ

No. of Funds

Square News

Schedule 13G FIlings of Square

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	dorsey jack	8.3%	48,844,566	SC 13G/A
Feb 09, 2023	vanguard group inc	6.61%	35,515,147	SC 13G/A
Feb 08, 2023	morgan stanley	3.6%	19,563,158	SC 13G/A
Feb 14, 2022	rt-sq management, llc	0.2%	309,959	SC 13G/A
Feb 11, 2022	dorsey jack	10.8%	48,844,566	SC 13G/A
Feb 09, 2022	vanguard group inc	6.31%	25,189,188	SC 13G/A
Feb 09, 2022	morgan stanley	6.2%	24,807,873	SC 13G/A
Jan 10, 2022	invesco ltd.	0.3%	1,028,109	SC 13G/A
Dec 10, 2021	blackrock inc.	4.9%	19,390,552	SC 13G/A
Dec 10, 2021	invesco ltd.	10.6%	47,172,108	SC 13G

SQ Fair Value

Square fair value in different scenarios

The table shows the Fair Value estimates for Square for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	24.37 -67.55%	39.91 -46.85%	100.71 34.12%	185.78 147.41%	366.30 387.81%
Current Inflation	22.42 -70.14%	27.01 -64.03%	45.41 -39.53%	71.26 -5.10%	125.81 67.55%
Very High Inflation	20.72 -72.41%	31.62 -57.89%	73.21 -2.50%	131.16 74.67%	252.35 236.06%

Historical Square Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Square

View All Filings

Date Filed	Form Type	Document
Mar 10, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Feb 24, 2023	4	Insider Trading
Feb 23, 2023	10-K	Annual Report
Feb 23, 2023	8-K	Current Report
Feb 23, 2023	S-8	Employee Benefits Plan
Feb 17, 2023	3	Insider Trading
Feb 17, 2023	4	Insider Trading
Feb 10, 2023	SC 13G/A	Major Ownership Report
Feb 10, 2023	4	Insider Trading

Latest Insider Trading transactions for SQ

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-08	Henry Alyssa	sold	-2,378,420	77.2993	-30,769	square lead
2023-03-08	Henry Alyssa	acquired	-	-	30,769	square lead
2023-03-01	Henry Alyssa	sold	-2,343,900	76.1775	-30,769	square lead
2023-03-01	Henry Alyssa	acquired	-	-	30,769	square lead
2023-02-22	Henry Alyssa	acquired	-	-	30,769	square lead
2023-02-22	Henry Alyssa	sold	-2,247,510	73.0445	-30,769	square lead
2023-02-15	Henry Alyssa	sold	-2,464,100	80.0838	-30,769	square lead
2023-02-15	Henry Alyssa	acquired	-	-	30,769	square lead
2023-02-08	Henry Alyssa	acquired	-	-	30,769	square lead
2023-02-08	Henry Alyssa	sold	-2,545,880	82.7416	-30,769	square lead

About Square

Jack P. Dorsey

www.squareup.com

8520

Block, 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, 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 payments device and receipt printer to replace traditional keypad terminals, which accepts tap, dip, and swipe payments. The company also offers various software products, including Square Point of Sale; Square Appointments; Square for Retail; Square for Restaurants; Square Online and Square Online Checkout; Square Invoices; Square Virtual Terminal; Square Team Management; Square Contracts; Square Loyalty, Marketing, and Gift Cards; and Square Dashboard. In addition, it offers a developer platform, which includes application programming interfaces and software development kits. Further, the company provides Cash App, which enables to send, spend, and store money; and Weebly that offers customers website hosting and domain name registration solutions. It serves in the United States, Canada, Japan, Australia, Ireland, France, Spain, and the United Kingdom. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in San Francisco, California.

SQ Income Statement

2022-12-31

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue:
Revenue	$ 17,531,587	$ 17,661,203	$ 9,497,578
Cost of Revenue [Abstract]
Amortization of acquired technology assets	70,194	22,645	11,174
Total cost of revenue	11,539,695	13,241,380	6,764,169
Gross profit	5,991,892	4,419,823	2,733,409
Operating expenses:
Product development	2,135,612	1,383,841	881,826
Sales and marketing	2,057,951	1,617,189	1,109,670
General and administrative	1,686,849	982,817	579,203
Transaction, loan, and consumer receivable losses	550,683	187,991	177,670
Bitcoin impairment losses	46,571	71,126	0
Amortization of customer and other acquired intangible assets	138,758	15,747	3,855
Total operating expenses	6,616,424	4,258,711	2,752,224
Operating income (loss)	(624,532)	161,112	(18,815)
Interest expense, net	36,228	33,124	56,943
Other income, net	(95,443)	(29,474)	(291,725)
Income (loss) before income tax	(565,317)	157,462	215,967
Provision (benefit) for income taxes	(12,312)	(1,364)	2,862
Net income (loss)	(553,005)	158,826	213,105
Less: Net loss attributable to noncontrolling interests	(12,258)	(7,458)	0
Net income (loss) attributable to common stockholders	$ (540,747)	$ 166,284	$ 213,105
Net income (loss) per share attributable to common stockholders:
Basic (in USD per share)	$ (0.93)	$ 0.36	$ 0.48
Diluted (in USD per share)	$ (0.93)	$ 0.33	$ 0.44
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic (in shares)	578,949	458,432	443,126
Diluted (in shares)	578,949	501,779	482,167
Transaction-based revenue
Revenue:
Revenue	$ 5,701,540	$ 4,793,146	$ 3,294,978
Cost of Revenue [Abstract]
Cost of revenue	3,364,028	2,719,502	1,911,848
Subscription and services-based revenue
Revenue:
Revenue	4,552,773	2,709,731	1,539,403
Cost of Revenue [Abstract]
Cost of revenue	861,745	483,056	222,712
Hardware revenue
Revenue:
Revenue	164,418	145,679	91,654
Cost of Revenue [Abstract]
Cost of revenue	286,995	221,185	143,901
Bitcoin revenue
Revenue:
Revenue	7,112,856	10,012,647	4,571,543
Cost of Revenue [Abstract]
Cost of revenue	$ 6,956,733	$ 9,794,992	$ 4,474,534

SQ Balance Sheet

2022-12-31

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 4,544,202	$ 4,443,669
Investments in short-term debt securities	1,081,851	869,283
Settlements receivable	2,416,324	1,171,612
Customer funds	3,180,324	2,830,995
Loans held for sale	474,036	517,940
Safeguarding asset related to bitcoin held for other parties	428,243	1,100,596
Other current assets	1,627,265	687,429
Total current assets	15,623,405	11,621,524
Property and equipment, net	329,302	282,140
Goodwill	11,966,761	519,276
Acquired intangible assets, net	2,014,034	257,049
Investments in long-term debt securities	573,429	1,526,430
Operating lease right-of-use assets	373,172	449,406
Other non-current assets	484,237	370,535
Total assets	31,364,340	15,026,360
Current liabilities:
Customers payable	5,548,656	3,979,624
Settlements payable	462,505	254,611
Accrued expenses and other current liabilities	1,056,676	702,881
Current portion of long-term debt (Note 15)	460,356	455
Warehouse funding facilities, current	461,240	0
Safeguarding obligation liability related to bitcoin held for other parties	428,243	1,100,596
PPP Liquidity Facility advances	16,840	497,533
Total current liabilities	8,434,516	6,535,700
Warehouse funding facilities, non-current	132,498	15,236
Warehouse funding facilities, non-current	877,066	0
Long-term debt (Note 15)	4,109,829	4,559,208
Operating lease liabilities, non-current	357,419	395,017
Other non-current liabilities	201,657	207,610
Total liabilities	14,112,985	11,712,771
Commitments and contingencies (Note 20)
Stockholders’ equity:
Preferred stock, $0.0000001 par value: 100,000,000 shares authorized at December 31, 2022 and December 31, 2021. None issued and outstanding at December 31, 2022 and December 31, 2021.	0	0
Additional paid-in capital	18,314,681	3,317,255
Accumulated other comprehensive loss	(523,090)	(16,435)
Accumulated deficit	(568,712)	(27,965)
Total stockholders’ equity attributable to common stockholders	17,222,879	3,272,855
Noncontrolling interests	28,476	40,734
Total stockholders’ equity	17,251,355	3,313,589
Total liabilities and stockholders’ equity	31,364,340	15,026,360
Consumer Portfolio Segment
Current assets:
Consumer receivables, net	1,871,160	0
Class A
Stockholders’ equity:
Common stock	0	0
Class B
Stockholders’ equity:
Common stock	$ 0	$ 0