Block (XYZ) AI Stock Analysis

• Market Cap: $42.46B
• Dividend Yield: N/A
• Average Volume (3M): 6.88M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.90
• Revenue Growth: 4.60%
• EPS Growth: 425.38%
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Infrastructure
• EPS (TTM): 0.56
• Shares Outstanding: 555,001,000
• 10 Day Avg. Volume: 6,719,280
• 30 Day Avg. Volume: 6,875,119
• PEG Ratio: -1.61
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.26
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: 4.80
• 1Y Price Target: $71.29
• Price Target Upside: 0.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 36

• Rating: 76 Outperform
• Price Target: $80.00 ▲(13.11%Upside)

The stock scores well due to its strong financial performance and solid technical indicators. Valuation metrics suggest fair value, while the latest earnings call and corporate events provide a mix of optimism and caution. Financial health and strategic growth initiatives are prominent positives.

Positive Factors

Market Position and Strategy

Square is now taking share from traditional processors and Clover, indicating a positive market position.

Stock Performance and Valuation

The stock remains among the cheapest in the space, and there is additional price performance potential post the 3-month rally in the stock.

Valuation and Potential Upside

Chime’s IPO provides investors with a more relevant and direct comp for Cash App, which illuminates the extent of the valuation discount as well as the potential upside.

Negative Factors

Customer Demographics

Cash App's demographic profile of low-income customers limits the volume and monetization potential.

Execution and Consistency

This story still has a lot of moving parts and a team that has delivered inconsistent results over the past several years.

Investor Sentiment

Investor sentiment turned overly negative following the first quarter’s gross profit miss and disappointing 2025 guide.

Block Business Overview & Revenue Model

Company Description

Block (XYZ) is a versatile technology company that operates primarily in the financial services and payments sectors. It offers a comprehensive suite of products and services designed to empower businesses and individuals with innovative financial solutions. Core offerings include point-of-sale systems, digital payment platforms, and mobile banking services, all aimed at simplifying transactions and fostering financial inclusion.

How the Company Makes Money

Block makes money through a diverse range of revenue streams. Key sources include transaction fees charged on payments processed through its platforms, subscription fees for premium services and software solutions, and hardware sales from point-of-sale devices. Additionally, Block generates revenue through partnerships with financial institutions and businesses, which utilize its infrastructure and technology to enhance their own service offerings. The company's earnings are also bolstered by its involvement in cryptocurrency transactions, where it charges fees for buying and selling digital currencies on its platform.

Block Financial Statement Overview

Summary

The company demonstrates impressive financial performance with strong revenue growth, improved profit margins, robust balance sheet, and solid cash flow generation. While there are potential risks related to debt fluctuations, these are currently well-managed.

Income Statement

The company has demonstrated impressive revenue growth, with a notable increase from $17.53 billion in 2022 to $23.94 billion in TTM 2025, reflecting strong demand for its offerings. Gross profit and net profit margins have also improved, with the net profit margin reaching 10.92% in TTM 2025. The EBIT and EBITDA margins are recovering well, indicating effective cost management and operational efficiency gains.

Balance Sheet

The company's balance sheet is robust, with a consistent increase in stockholders' equity and a healthy equity ratio of 59.00% in TTM 2025. The debt-to-equity ratio is manageable at 0.28, suggesting a conservative approach to leverage. However, the total debt has fluctuated slightly, which could pose a risk if not carefully managed.

Cash Flow

Cash flow generation is solid with a significant improvement in free cash flow from negative figures in 2023 to $1.20 billion in TTM 2025. The operating cash flow to net income ratio demonstrates strong cash conversion capabilities. While there has been some volatility in operating cash flows, the overall trajectory appears positive.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.12B	21.92B	17.53B	17.66B	9.50B
Gross Profit	8.89B	7.50B	5.99B	4.42B	2.73B
EBITDA	1.35B	390.53M	-58.76M	408.48M	427.38M
Net Income	2.90B	9.77M	-553.00M	166.28M	213.10M
Balance Sheet
Total Assets	36.78B	33.03B	31.36B	13.93B	9.87B
Cash, Cash Equivalents and Short-Term Investments	12.75B	9.42B	8.81B	8.14B	5.89B
Total Debt	7.92B	6.07B	6.33B	5.52B	3.49B
Total Liabilities	15.54B	14.34B	14.11B	10.61B	7.19B
Stockholders Equity	21.27B	18.70B	17.22B	3.27B	2.68B
Cash Flow
Free Cash Flow	1.55B	-50.19M	5.09M	543.51M	243.20M
Operating Cash Flow	1.71B	100.96M	175.90M	847.83M	381.60M
Investing Cash Flow	649.95M	683.20M	1.23B	-1.31B	-606.64M
Financing Cash Flow	1.95B	-240.14M	97.58M	2.65B	3.68B

Block Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XYZ, the sentiment is Positive. The current price of 70.73 is above the 20-day moving average (MA) of 67.07, above the 50-day MA of 62.51, and below the 200-day MA of 71.46, indicating a neutral trend. The MACD of 1.68 indicates Positive momentum. The RSI at 61.41 is Neutral, neither overbought nor oversold. The STOCH value of 58.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XYZ.

Block Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	79 Outperform	$8.95B	34.94	30.28%	―	27.39%	115.40%
XYZ	76 Outperform	$42.46B	17.20	12.93%	―	4.60%	425.38%
TOST	76 Outperform	$26.11B	198.81	11.06%	―	26.72%	―
PAYO	74 Outperform	$2.47B	23.08	15.97%	―	14.86%	-0.94%
CPAY	73 Outperform	$23.06B	23.50	30.33%	―	6.68%	6.08%
MQ	68 Neutral	$2.75B	58.82	5.01%	―	-8.44%	―
Sector *	63 Neutral	$34.26B	5.42	-11.67%	1.85%	5.30%	-18.55%

Block Corporate Events

Block Approves Key Proposals at Annual Meeting

On June 17, 2025, Block, Inc. held its annual meeting of stockholders where key proposals were approved, including the 2025 Equity Incentive Plan and the Amended and Restated 2015 Employee Stock Purchase Plan. These approvals, along with the election of directors and ratification of Ernst & Young LLP as the independent accounting firm, reflect strategic steps to enhance the company’s operational framework and governance, potentially strengthening its market position and stakeholder confidence.

The most recent analyst rating on (XYZ) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Block stock, see the XYZ Stock Forecast page.