Square Stock Analysis, Valuation (NYSE:SQ)

Add to My Stocks
$44.11 $0.18 (0.41%) SQ stock closing price Feb 16, 2018 (Closing)
Watch Robo Advisor Video of SQ Stock Analysis
Square
Updated on : Feb 16, 2018
previous close
SQ 44.1 (0%)
NASDAQ 7239.5 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-2.7%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
354.2M
Debt/Equity Ratio:
 0.48
Compared to the industry
Cash Flow
Operating cash flow:
$39.7M
Net Income:
-$16.1M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
SQ PS :
8.3
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-25.6%
Return on Equity:
-9.9%
Free Cash Flow Margin:
5.8%
Double Tap To Exit Full Screen
0:00
/

Square Stock Analysis

239 7 2

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 2/5

Amigobulls SQ stock analysis relies on business fundamentals such as Square revenue growth, profits and return on equity measures from the latest quarter 2017 Q3 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?

  • The Year Over Year (YoY) revenue growth for Square was 33.3% in 2017 Q3.

Should you sell SQ stock?

  • Square registered a negative operating margin of -2.7% (average) over the Trailing Twelve Months (TTM).
  • Square registered an average TTM Net loss of -3%.
  • With a debt/equity ratio of  0.48, Square is highly leveraged in comparison to Computer and Technology peers.
  • The company does not have profits. Hence the PE ratio is meaningless for SQ stock.
  • The company is trading at a price to sales multiple of 8.3, which is overvalued in comparison to the Internet Software industry average multiple of 2.8.
  • The company has a negative Return on Invested Capital of -25.6%, which is a red flag.
  • A negative ROE of -9.9% indicates that the company is not able to generate profits with the money shareholders have invested.

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.