Square Stock Analysis, Valuation (NYSE:SQ)

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$72.37 $1.77 (2.51%) SQ stock closing price Aug 13, 2018 (Closing)

View the Square stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for SQ stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Square Inc Stock Rating 2.2/5

Amigobulls SQ stock analysis relies on business fundamentals such as Square revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We compare Square valuation with its sector peers to gauge relative attractiveness of SQ stock. Square stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy SQ stock?

  • Square's revenue growth came in at 44.9% in 2018-03.
  • The company has a good Free Cash Flow (FCF) margin of 6.6.

Should you sell SQ stock?

  • Over the last twelve months, Square posted an average operating loss margin of -2.52.
  • Square registered an average TTM Net loss of -3%.
  • Square has a debt/equity ratio of 0.45, which is worse than the average in the Computer and Technology sector.
  • The lack of profits renders the PE ratio useless for SQ stock.
  • The company is trading at a price to sales multiple of 10.9, which is overvalued in comparison to the Computer and Technology sector average multiple of 2.9.
  • -26.2's negative ROIC of -26.2 indicates operational inefficiency.
  • Square has a negative return on equity of -9.8. This indicates that the firm is inefficient at generating profits.

Comments on this video and Square stock

Amigobulls Square stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Square revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.