Square Stock Analysis (NYSE:SQ)

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$26.75 $0.1 (0.37%) SQ stock closing price Jul 24, 2017 (Closing)
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Square
Updated on : Jul 24, 2017
previous close
SQ 26.8 (0%)
NASDAQ 6410.8 (0%)
Closing Price On: Jul 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-4.9%
Sector Average:
6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
345.7M
Debt/Equity Ratio:
 0.55
Compared to the industry
Cash Flow
Operating cash flow:
$44M
Net Income:
-$15.1M
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 :
5.5
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-65.5%
Return on Equity:
-17.1%
Free Cash Flow Margin:
8.1%
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Square Analysis Video

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View Square stock analysis video. This is our SQ 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 Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy SQ stock?

  • Square sales grew by 21.7% year on year in 2017 Q1.

Should you sell SQ stock?

  • Square registered a negative operating margin of -4.9% (average) over the Trailing Twelve Months (TTM).
  • Square registered an average TTM Net loss of -5%.
  • Square is debt laden and has a high debt/equity ratio of  0.55.
  • The lack of profits renders the PE ratio useless for SQ stock.
  • The company is trading at a price to sales multiple of 5.5, which is higher in comparison to the Internet Software industry average of 2.9, making SQ stock expensive.
  • Square's negative ROIC of -65.5% indicates operational inefficiency.
  • Square has a negative ROE (Return On Equity) of -17.1%, indicating the company is not profitable.

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