Block (XYZ) AI Stock Analysis

• Market Cap: $37.65B
• Dividend Yield: N/A
• Average Volume (3M): 7.55M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.57
• Revenue Growth: 0.47%
• EPS Growth: 178.05%
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.54
• Shares Outstanding: 547,667,000
• 10 Day Avg. Volume: 10,127,837
• 30 Day Avg. Volume: 7,554,991
• PEG Ratio: <0.01
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 33.76
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.82
• Enterprise Value/Gross Profit: 4.47
• Enterprise Value/Ebitda: 18.93
• 1Y Price Target: $86.59
• Price Target Upside: 39.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $73.00 ▲(17.84% Upside)

The overall stock score of 73 reflects strong financial performance and positive earnings call sentiment as the most significant factors. The company shows robust revenue and profit growth, with a solid balance sheet and cash flow generation. However, technical analysis indicates bearish momentum, which could pose short-term risks. The valuation suggests the stock is undervalued, providing a potential opportunity for investors. Positive guidance and strategic innovations further support the stock's potential for future growth.

Positive Factors

Product Innovation

The introduction of AI tools and enhanced product features can drive long-term growth by improving user experience and operational efficiency.

Cash App Growth

Strong growth in Cash App indicates robust user engagement and market penetration, providing a solid foundation for future revenue expansion.

Financial Stability

A low debt-to-equity ratio enhances financial stability, allowing for greater flexibility in strategic investments and resilience against economic downturns.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth can hinder the company's ability to scale operations and compete effectively in the market.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests challenges in generating sufficient cash to fund operations and investments, potentially impacting long-term growth.

Processing Costs Headwind

Rising processing costs can erode profit margins, reducing overall profitability and limiting resources available for reinvestment.

Block Business Overview & Revenue Model

Company Description

Block (formerly Square, Inc.) is a financial services and mobile payment company headquartered in San Francisco, California. The company operates primarily in the fintech sector and offers a diverse range of products and services including payment processing solutions, point-of-sale systems, and financial management software. Block also encompasses Cash App, a peer-to-peer payment platform, and has expanded into cryptocurrency trading and business financing, making it a comprehensive ecosystem for both individuals and businesses.

How the Company Makes Money

Block generates revenue through multiple streams primarily centered around its payment processing services. The company charges a transaction fee for each payment processed through its point-of-sale systems, which can vary based on transaction type and volume. Additionally, Cash App contributes to revenue through fees associated with instant transfers, cryptocurrency trading, and cash card usage. Block also offers business loans and financial services, charging interest and fees on these products. Significant partnerships with various retailers and e-commerce platforms enhance transaction volume and, consequently, revenue. Furthermore, the company’s entry into cryptocurrency markets provides new revenue opportunities through trading fees and related services.

Block Financial Statement Overview

Summary

The company demonstrates strong financial health with impressive revenue and profit growth, solid balance sheet stability, and robust cash flow generation. While operational efficiency could be improved, the low leverage and strong equity position provide a solid foundation for future growth. Potential risks include past periods of higher leverage and cash flow volatility.

Income Statement

The company has shown strong revenue growth with a TTM increase of 58.4%, indicating robust demand and market expansion. Gross profit margin improved to 40.4% in TTM, reflecting efficient cost management. Net profit margin also increased to 13.1%, showcasing enhanced profitability. However, the EBIT margin is relatively low at 5.1%, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.07 in TTM, indicating strong financial stability and low leverage. Return on equity is healthy at 14.4%, reflecting effective use of equity capital. The equity ratio stands at 57.5%, showing a strong equity base. However, past periods showed higher leverage, which could pose a risk if not managed carefully.

Cash Flow

Cash flow performance is strong with a significant free cash flow growth of 72.9% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.20, suggesting good cash conversion. The free cash flow to net income ratio is high at 0.93, reflecting efficient cash utilization. However, past periods had negative free cash flow, highlighting potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.97B	24.12B	21.92B	17.53B	17.66B	9.50B
Gross Profit	9.74B	8.89B	7.33B	5.99B	4.31B	2.66B
EBITDA	2.30B	2.06B	379.42M	313.25M	408.48M	427.38M
Net Income	3.14B	2.90B	9.77M	-540.75M	166.28M	213.10M
Balance Sheet
Total Assets	39.18B	36.78B	33.03B	31.36B	13.93B	9.87B
Cash, Cash Equivalents and Short-Term Investments	8.78B	12.75B	6.25B	8.81B	8.14B	3.85B
Total Debt	8.10B	7.92B	6.07B	6.33B	5.52B	3.49B
Total Liabilities	16.71B	15.54B	14.34B	14.11B	10.61B	7.19B
Stockholders Equity	22.51B	21.27B	18.70B	17.22B	3.27B	2.68B
Cash Flow
Free Cash Flow	1.83B	1.55B	-50.19M	5.09M	543.51M	-15.29M
Operating Cash Flow	1.97B	1.71B	100.96M	175.90M	847.83M	173.11M
Investing Cash Flow	-994.97M	649.95M	683.20M	1.23B	-1.31B	-606.64M
Financing Cash Flow	54.67M	1.95B	-240.14M	97.58M	2.65B	3.68B

Block Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.95
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 61.95 is below the 20-day moving average (MA) of 68.37, below the 50-day MA of 73.18, and below the 200-day MA of 67.65, indicating a bearish trend. The MACD of -4.11 indicates Positive momentum. The RSI at 35.59 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XYZ.

Block Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	74 Outperform	$6.12B	32.40	15.52%	―	23.16%	27.38%
XYZ	73 Outperform	$37.65B	12.46	14.78%	―	0.47%	178.05%
CPAY	73 Outperform	$20.21B	19.61	29.35%	―	11.27%	4.47%
PYPL	73 Outperform	$56.67B	12.15	24.36%	―	4.50%	19.71%
TOST	69 Neutral	$19.96B	77.87	15.96%	―	25.76%	―
GPN	68 Neutral	$17.40B	10.31	6.72%	1.26%	-11.30%	34.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Block Corporate Events

Block Inc. Earnings Call: Strong Growth and Positive Outlook

Block Inc.’s latest earnings call revealed a robust and optimistic outlook for the company, driven by strong growth in both Cash App and Square. The sentiment was overwhelmingly positive, with significant acceleration in key metrics and exciting new product innovations. Despite some challenges, such as increased processing costs and economic sensitivity, the overall performance and future outlook remain promising.

Block Inc. Reports Strong Growth in Q3 2025 Earnings

Block Inc., a financial technology company, operates in the digital payments industry, providing tools for businesses and individuals through its Square and Cash App platforms. The company has adopted a distributed work model, with no formal headquarters.

Block Announces Leadership Transition in Engineering Team

On August 21, 2025, Block, Inc. announced a leadership transition within its engineering team. Dhanji R. Prasanna will shift from his role as Engineering + Technology Lead to focus on technology strategy and frontier technologies, while Arnaud Weber will take over as Engineering Lead, pending regulatory approvals.

The most recent analyst rating on (XYZ) stock is a Sell with a $70.00 price target. To see the full list of analyst forecasts on Block stock, see the XYZ Stock Forecast page.