Now trading at a price of $69.99, Block has moved -1.9% so far today.
Block returned gains of 25.4% last year, with its stock price reaching a high of $87.52 and a low of $38.85. Over the same period, the stock returned a similar cumulative performance to the S&P 500. The company's 50-day average price was $76.95.
Block, Inc., together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the United States and internationally. Based in Oakland, CA, the Large-Cap Technology company has 12,985 full time employees. Block has not offered a dividend during the last year.
Increasing Revenues but Narrowing Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $3,298 | $4,714 | $9,498 | $17,661 | $17,532 | $21,916 |
| Gross Margins | 40% | 40% | 28% | 25% | 34% | 34% |
| Net Margins | -1% | 8% | 2% | 1% | -3% | 0% |
| Net Income (M) | -$38 | $375 | $213 | $166 | -$541 | $10 |
| Net Interest Expense (M) | -$18 | -$22 | -$57 | -$33 | -$36 | $47 |
| Depreciation & Amort. (M) | $61 | $76 | $84 | $135 | $341 | $409 |
| Diluted Shares (M) | 406 | 466 | 482 | 502 | 579 | 614 |
| Earnings Per Share | -$0.09 | $0.81 | $0.44 | $0.33 | -$0.93 | $0.02 |
| EPS Growth | n/a | 1000.0% | -45.68% | -25.0% | -381.82% | 102.15% |
| Avg. Price | $62.26 | $68.49 | $120.89 | $234.88 | $104.67 | $69.7 |
| P/E Ratio | -691.78 | 77.83 | 251.85 | 652.44 | -112.55 | 3485.0 |
| Free Cash Flow (M) | $234 | $265 | $35 | $714 | $5 | -$50 |
| CAPEX (M) | $61 | $62 | $138 | $134 | $171 | $151 |
| EV / EBITDA | 1026.56 | 285.15 | 806.45 | 364.23 | -213.87 | 316.72 |
| Total Debt (M) | $900 | $1,431 | $3,282 | $5,428 | $4,570 | $4,120 |
| Net Debt / EBITDA | 13.0 | 3.76 | 1.9 | 3.33 | -0.09 | -6.76 |
| Current Ratio | 2.07 | 1.9 | 1.88 | 1.78 | 1.85 | 1.9 |
Block has rapidly growing revenues and increasing reinvestment in the business and positive EPS growth. Additionally, the company's financial statements display a decent current ratio of 1.9 and healthy leverage levels. However, the firm suffers from slimmer gross margins than its peers and positive cash flows.
a Lower P/B Ratio Than Its Sector Average but Trading Above Its Fair Price:
Block has a trailing twelve month P/E ratio of 128.2, compared to an average of 35.0 for the Technology sector. Based on its EPS guidance of $4.45, the company has a forward P/E ratio of 17.3. Block's PEG ratio is 5.02 on the basis of the 25.5% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. In contrast, the market is likely undervaluing Block in terms of its equity because its P/B ratio is 2.28 while the sector average is 7.92. The company's shares are currently trading 1791.6% below their Graham number.
Block Has an Average Rating of Buy:
The 40 analysts following Block have set target prices ranging from $40.0 to $106.0 per share, for an average of $91.13 with a buy rating. The company is trading -23.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Block has an average amount of shares sold short because 2.4% of the company's shares are sold short. Institutions own 69.4% of the company's shares, and the insider ownership rate stands at 0.85%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 7% stake in the company is worth $2,555,969,955.
