Square Stock Analysis, Valuation (NYSE:SQ)

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$28.4 $0.07 (0.25%) SQ stock closing price Sep 21, 2017 (Closing)
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Square
Updated on : Sep 21, 2017
previous close
SQ 28.4 (0%)
NASDAQ 6422.7 (0%)
Closing Price On: Sep 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-3.8%
Sector Average:
5.9%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
350M
Debt/Equity Ratio:
 0.5
Compared to the industry
Cash Flow
Operating cash flow:
$46.6M
Net Income:
-$16M
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 :
5.6
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-43.5%
Return on Equity:
-13.6%
Free Cash Flow Margin:
7.1%
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Square Stock Analysis

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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 buy SQ stock?

  • Square sales grew by 25.8% year on year in 2017 Q2.

Should you sell SQ stock?

  • Square registered a negative operating margin of -3.8% (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Square had an average Net loss of -4.1%.
  • Square is debt laden and has a high debt/equity ratio of  0.5.
  • The lack of profits renders the PE ratio useless for SQ stock.
  • The company is trading at a price to sales multiple of 5.6, which is overvalued in comparison to the Internet Software industry average multiple of 2.7.
  • Square's negative ROIC of -43.5% indicates operational inefficiency.
  • Square has a negative ROE (Return On Equity) of -13.6%, indicating the company is not profitable.

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