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?
- 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.