Square Stock Analysis, Valuation (NYSE:SQ)
Square Stock Analysis
View Square stock analysis video. This is our analyst opinion covering the buy and sell arguments for SQ stock.
Square Inc Stock Rating 2/5
Our Square stock opinion is based on fundamentals of the company. This Square stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you sell SQ stock?
- Over the last twelve months, Square posted an average operating loss margin of -3.8%.
- Square registered an average TTM Net loss of -4.1%.
- With a debt/equity ratio of 0.5, Square is highly leveraged in comparison to Computer and Technology peers.
- The lack of profits renders the PE ratio useless for SQ stock.
- SQ stock is trading at a PS multiple of 5.7, which is a negative when compared to the Internet Software industry average multiple of 2.8.
- The company has a negative Return on Invested Capital of -43.5%, which is a red flag.
- Square has a negative return on equity of -13.6%. This indicates that the firm is inefficient at generating profits.