Square Stock Analysis, Valuation (NYSE:SQ)
Square Stock Analysis
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 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.
Square Related Company Stock Videos
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.