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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2938
Positioning
Market Dominance
Services
Computer Software
$44.1B
Jack P. Dorsey
Block, Inc. creates tools that enables sellers to accept card payments and provides reporting and analytics, and next-day settlement. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments. Square Stand enables an iPad to be used as payment terminal or full point of sale solution.
Headcount
12.4K
HQ Base
San Francisco, California
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = XYZ ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$XYZ Block, Inc. | 44 | 42 | 51 | 42 | 22.0x | 36.0x | 6.5% | 3.8% | 40.7% | 6.5% | 6.1% | -0.7% | 0.0% | 32.0x | $44.1B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Block, Inc. (XYZ) receives a "Reduce" rating with a composite score of 44.2/100. It ranks #2938 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for XYZ.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 42 | 39 | +3NEUTRAL |
| MOMENTUM | 42 | 39 | +3NEUTRAL |
| VALUATION | 51 | 54 | -3NEUTRAL |
| INVESTMENT | 42 | 74 | -32DRAG |
| STABILITY | 50 | 52 | -2NEUTRAL |
| SHORT INT | 57 | 72 | -15DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 6.5% (sector 5.7%)
GM 41% vs sector 65%, OM 6% vs sector 5%
Capital turnover N/A, R&D intensity 12.2%
Rev growth -1%, 10yr history
Interest coverage N/A, Net debt/EBITDA -2.6x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Block, Inc. (XYZ) as a Reduce with a composite score of 44.2/100 at a current price of $51.11. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Block, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.2/100 places it at rank #2938 in our full universe.
No Moat
Medium
Poor
Fair Value
Gross margins of 41% signal strong pricing power.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
Block, Inc. represents a reduce based on multi-factor quantitative performance.
Block, Inc. receives a Reduce rating from our analysis, with a composite score of 44.2/100 and 2 out of 5 stars, ranking #2938 out of 7,333 stocks. XYZ's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
XYZ's quality score of 42/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 6.5% (sector avg: 5.7%), gross margins of 40.7% (sector avg: 64.6%), net margins of 6.1% (sector avg: 2.8%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
XYZ's value score of 51/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 22.00x, an EV/EBITDA of 36.00x, a P/B ratio of 1.44x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 42/100, XYZ exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -0.7% vs. a sector average of 8.6% and a return on assets of 3.8% (sector: 2.4%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
XYZ is currently showing below-average momentum at 42/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -0.7% year-over-year, while a beta of 1.62 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 50/100, XYZ exhibits average financial resilience. Key stability metrics include a beta of 1.62 and a debt-to-equity ratio of 32.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 57/100 for XYZ suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 1.62), elevated leverage (D/E: 32.00x). With a $44.1B market cap (large-cap), Block, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Block, Inc. is a large-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #2938 of 7,333 overall (60th percentile). Key comparisons include ROE of 6.5% exceeding the 5.7% sector median and operating margins of 6.5% above the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While XYZ currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
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Improvement in Quality (42) would have the largest impact on the composite score.
EV/EBITDA 207% ABOVE SECTOR MEDIAN
ROE 14% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 37% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Block, Inc. (NYSE:XYZ) shares are up during Friday’s premarket session as the company expands its partner ecosystem, enhancing its offerings for sellers. On Thursday, Block announced a significant expansion of its partner ecosystem, which now includes nearly 1,000 industry-leading partners such as Amazon.com, Inc. (NASDAQ:AMZN), Intuit Inc.’s (NASDAQ:INTU) Intuit QuickBooks, and Uber Technologies, Inc.’s (NYSE:UBER) Uber Eats. This initiative aims to empower sellers by providing them with integr
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