Quality Investor

Block, Inc.

Rank #258Capital Return

XYZ · NYSE · Technology

Block, Inc. (XYZ) — Rank #258 by gross profitability (GP/assets 0.26) · ROE 5.9% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001512673 · all metrics point-in-time as of the filing date.

About

Block, Inc., together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the United States and internationally.

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It operates through two segments: Square and Cash App. The Square segment offers managed payment services; software solutions; hardware products, such as registers, terminals, stands, and readers for contactless and chips; banking services consisting of lending, instant transfer, and checking and savings accounts; and full-service setup and support services. This segment also provides loyalty, marketing, team management, and payroll services; and gift cards. It also offers Square Handheld, a portable point-of sale device for transaction purposes. The Cash App segment offers financial tools, including peer-to-peer payments, bitcoin, and stock investment brokerage; Cash App Card, a debit card; Cash App Pay, mobile-friendly way for cash app customers to pay at merchants across online and in-person channels; direct deposit, stock brokerage, and tax preparation services; and Afterpay, a buy now, pay later platform. In addition, the company operates TIDAL, a platform for musicians and fans; TBD, an open developer platform focused on making the decentralized financial world accessible; Bitkey, a self-custody bitcoin wallet; and proto. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc.

was incorporated in 2009 and is based in Oakland, California.

Industry
Software - Infrastructure
Sector
Technology
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
block.xyz

Price History

XYZ-70.6% · -21.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$47.26B

P/E (annual)

37.5

P/S (annual)

2.0

P/B

2.1

P/OCF (annual)

18.3

Shareholder Yield

2.1%

Employees

10,205

Industry

Software - Infrastructure

Exchange

NYSE

Signal Flags

2 green
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.26
Return on equity
5.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.78
Current ratio
2.21×
Net cash
$706.76M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
5.0%

Growth

2/2 pass
Revenue growth
0.3%
Piotroski F-Score
N/A
Share dilution
-2.1%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

7.9%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -2.1% — per-share value needs a total required return of 5.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 17.5%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

3.5%

r = 10% (base)

7.9%

r = 12%

11.6%

Net debt / market cap: -1.4%

Base FCF: $2.4B3Y mean FCF: $1.3B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

26.0xCheap
14.5xmed 191.2x3398.0x

P / S

Price / revenue per share

1.4xCheap
1.4xmed 5.1x15.9x

P / B

Price / book value per share

1.5xCheap
1.5xmed 17.7x47.0x

P / GP

Price / gross profit per share

3.3xCheap
3.3xmed 14.8x47.0x

P / FCF

Price / free cash flow per share

14.0xCheap
14.0xmed 113.1x8437.3x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

24th pctl of 38 SIC 7372 peers

Return on equity

5.9%

Gross margin

42.8%

5th pctl of 38 SIC 7372 peers

Revenue growth (YoY)

0.3%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

11.3%

Revenue CAGR (5Y)

20.6%

Earnings CAGR (3Y)

FCF CAGR (3Y)

681.1%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.78

44th pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

2.21×

62nd pctl of 38 SIC 7372 peers

Quick ratio

0.63×

Net cash

$706.76M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$2.42B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.86

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.0%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20202025
Hypergrowth
Startup
Op. Leverage
Capital Return