We've been asking ourselves recently if the market has placed a fair valuation on Series. Let's dive into some of the fundamental values of this Large-Cap Technology company to determine if there might be an opportunity here for value-minded investors.
a Lower P/B Ratio Than Its Sector Average but Its Shares Are Expensive:
Block, Inc., together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the United States and internationally. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 30.44 and an average price to book (P/B) ratio of 4.19. In contrast, Series has a trailing 12 month P/E ratio of 16.1 and a P/B ratio of 2.07.
Series has moved 1.7% over the last year compared to 13.8% for the S&P 500 — a difference of -12.1%. Series has a 52 week high of $99.26 and a 52 week low of $44.27.
Strong Revenue Growth but Slimmer Gross Margins than the Industry Average of 63.49%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,714 | $9,498 | $17,661 | $17,532 | $21,916 | $24,121 |
| Gross Margins | 40% | 28% | 25% | 34% | 34% | 37% |
| Net Margins | 8% | 2% | 1% | -3% | 0% | 12% |
| Net Income (M) | $375 | $213 | $166 | -$541 | $10 | $2,897 |
| Net Interest Expense (M) | -$22 | -$57 | -$33 | -$36 | $47 | -$9 |
| Depreciation & Amort. (M) | $76 | $84 | $135 | $341 | $409 | $153 |
| Diluted Shares (M) | 466 | 482 | 502 | 579 | 614 | 636 |
| Earnings Per Share | $0.81 | $0.44 | $0.33 | -$0.93 | $0.02 | $4.56 |
| EPS Growth | n/a | -45.68% | -25.0% | -381.82% | 102.15% | 22700.0% |
| Free Cash Flow (M) | $265 | $35 | $714 | $5 | -$50 | $1,553 |
| CAPEX (M) | $62 | $138 | $134 | $171 | $151 | $154 |
| Current Ratio | 1.9 | 1.88 | 1.78 | 1.85 | 2.01 | 2.33 |
Series has rapidly growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display generally positive cash flows and an excellent current ratio of 2.33. However, the firm has slimmer gross margins than its peers.
