XYZ Block, Inc.
$77.50
▼ 2.9%Updated Oct 16, 2:25 PM ET
Report Card
XYZ at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Weak · 25/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 18.5% in the year to Jul 6, 2026
Key Metrics
Market Cap
$44.45B
P/E
57.02x
Forward P/E (est.)
81.46x
ROE
3.6%
Revenue Growth
2.3%
EPS Growth
-68.7%
Profit Margin
3.3%
FCF Yield
—
Debt / Equity
0.39x
ROIC
5.0%
Interest Coverage
29.4x
Current Ratio
2.21x
Dividend Yield
—
Implied Growth (rev. DCF)
3.4%
Rating Score
25/100
Business Overview
Block, Inc. (XYZ) is a large-cap company in the Transaction & Payment Processing Services industry, part of the Financials sector of the S&P 500, with a market value around $44.45B.
In its latest reported year it generated about $24.19B in revenue and $1.31B in net profit.
Our model rates XYZ Weak (25/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedSome durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
38.0% average over the last 3 years
±5.1 pts around 35.3% across 10 years
grew in 8 of the last 9 year-over-year periods
positive in 8 of 10 years
5.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what XYZ's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. XYZ trades near $77.50, above its 50-day average ($72.06) and 200-day average ($67.35). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 69 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. XYZ's is $3.00 (~3.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, XYZ found buyers near $65.46 (support) and sellers near $81.04 (resistance); its 52-week range then was $48.21–$82.50. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
8.2%
Revenue moved from $1.71B in 2016 to $24.19B in 2025, a 34.2% compound annual growth rate. The most recent year was roughly flat (2.3%) year over year. Slower, mature growth is common for established businesses.
Profitability
Gross Margin
42.8%
Operating Margin
7.1%
Net Margin
5.4%
ROE
3.6%
Block, Inc. keeps about 3.3% of each sales dollar as net profit, with a 42.8% gross margin and 7.1% operating margin. Return on equity is 3.6% and return on invested capital about 5.0%. Thin margins leave less cushion if costs rise.
Debt Analysis
Total Debt
$5.72B
Net Debt
-$706.76M
Net cash position
Net Debt / EBITDA
-0.41x
Debt / Equity
0.39x
Leverage: debt-to-equity is 0.4x, and operating profit covers interest about 29.4x, with a current ratio of 2.2x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $5.72B of total debt against $6.43B of cash.
Cash Flow Analysis
Operating CF
$2.58B
Free Cash Flow
$2.42B
FCF Margin
10.0%
In the latest year Block, Inc. produced about $2.58B of operating cash flow and $2.42B of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Valuation Analysis
P/E
57.02x
P/S
1.84x
P/B
1.84x
EV / EBITDA
—
XYZ trades at 57.0x trailing earnings (about 81.5x on estimated forward earnings), 1.8x sales, and 1.8x book value. Reverse-engineering today's price implies the market expects roughly 3.4% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
—
Current price
$77.50
Starting FCF (latest 10-K)
$2.42B
Growth, years 1–5
2.3%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where XYZ sits versus the Financials companies we cover.
Bands show the middle half (25th–75th percentile) of the 141 Financials companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How XYZ stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.
Among the 141 rated Financials companies we cover, XYZ ranks #137 by our overall rating. It trades at a premium versus the sector on earnings (57x P/E vs. 14.9x median) with a lower return on equity (3.6% vs. 13.6%) and slower revenue growth (2.3% vs. 15.9%).
P/E vs sector
57x
median 14.9x
ROE vs sector
3.6%
median 13.6%
Growth vs sector
2.3%
median 15.9%
Sector rank
#137
of 141 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Financials companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 141 rated companies among the 289 Financials stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$83.14 – $139.37
vs. $77.50 today · implied CAGR 1% – 12%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $24.92B | $25.67B | $26.44B | $27.23B | $28.05B |
| Net income | $1.25B | $1.28B | $1.32B | $1.36B | $1.40B |
| EPS | $2.17 | $2.24 | $2.30 | $2.37 | $2.45 |
| Share price (low) | $73.86 | $76.08 | $78.36 | $80.71 | $83.14 |
| Share price (high) | $123.83 | $127.55 | $131.37 | $135.31 | $139.37 |
| CAGR (low–high) | -5% / 60% | -1% / 28% | 0% / 19% | 1% / 15% | 1% / 12% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for XYZ:
- A conservative balance sheet (debt/equity 0.4x) lowers risk.
- As an established S&P 500 member in Financials, it brings scale and a long operating history.
Bear Case
The case against XYZ:
- Revenue growth is slow (2.3%), limiting the upside engine.
- Thin net margins (3.3%) leave little room for error.
- A rich 57.0x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (25/100).
Key Risks
Valuation risk — at 57.0x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (2.3%) leaves little margin for execution missteps.
Margin risk — thin profitability (3.3%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen weakly: Block, Inc. is a large-cap financials business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 57.0x earnings, which our model scores Weak (25/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 53 Wall Street analysts covering XYZ recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
XYZ's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
XYZ — frequently asked questions
Is XYZ a good stock to buy?
We don't give buy or sell advice. Our model rates Block, Inc. Weak (25/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is XYZ's rating on The Stocks School?
Block, Inc. currently scores 25/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does XYZ's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Block, Inc.'s SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for XYZ calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this XYZ analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell XYZ. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.