Block, Inc. (XYZ) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Block, Inc.

Updated on October 13, 2026 · accounts published on August 5, 2026

Reading of October 12, 2026: A cash-rich business at record operating margins, still earning thin returns on capital

Block trades at a P/E of 137.1 over the last 12 months, 292 % above its sector median of 35.0, while its 2025 operating margin hit a 12-year high.

• Is Block expensive or cheap? Its P/E of 137.1 is 292 % above the 35.0 sector median, yet EV/EBITDA sits far below its four-year average.
• How is the business doing? The fiscal 2025 operating margin of 12.6 % was the best in 12 years, against a 2014-2025 average of −1.9 %.
• How strong is the balance sheet? Block held net cash of $4.68 per share at the end of fiscal 2025, about 6 % of the share price, and debt to equity is 0.33.
• Is Block growing with real cash or by diluting shareholders? Stock-based pay was 5 % of fiscal 2025 revenue, under the 10 % limit, but free cash flow was only 10 % of revenue.
• What to expect from the next earnings? Analysts expect EPS of $1.03 when Block reports on November 3, 2026, and the 2026 EPS consensus holds at $4.06.

Is Block expensive or cheap?

Over the last 12 months Block trades at a P/E of 137.1. The median for the 361 companies in its sector is 35.0, so that is a 292 % premium. The P/E is inflated by very thin net earnings, and other measures look gentler. EV/EBITDA is 31.7×, well below its four-year average of 74.7×. The free cash flow yield of 8.3 % is nearly double the 4.4 % earnings yield. Price to book stands at 2.1×. The stock is 9 % below its 52-week high of $84.85 and up 3 % over the last 12 months.

How is the business doing?

Block's operating profitability is recent. Its operating margin averaged −1.9 % across fiscal 2014-2025, then reached 12.6 % in fiscal 2025, the highest of those 12 years. Over the last 12 months it is 10.2 %. Much less of that survives below the operating line: the net margin is 1.4 % and ROE is 1.6 %. Growth has stalled, with revenue up 0.3 % and EPS down 54 % year on year over the last 12 months. ROIC of 4.3 % is 3.8 points below the 8.2 % sector median, and it has not topped 10 % in any of the last ten fiscal years.

How strong is the balance sheet?

Block has more cash than debt. At the end of fiscal 2025 it held $19.54 per share in cash against $14.86 of debt. That leaves net cash of $4.68, equal to 6 % of the current price. Net debt to EBITDA is −1.1×, comfortably inside the 1.5× that software businesses can tolerate. Debt to equity of 0.33 and a current ratio of 2.21 over the last 12 months point the same way. The weaker readings are an Altman Z of 2.8, in the grey zone, and a Piotroski score of 6 of 9. Both are middling marks for a balance sheet this liquid.

Is Block growing with real cash or by diluting shareholders?

Generic ratios fall short in technology. Value there depends on growth, pricing power and how much pay goes out in shares. On dilution Block passes: stock-based pay was 5 % of revenue in fiscal 2025, below the healthy 10 % limit. The rest of the checklist is weaker. Revenue per share grew 9.3 % a year over fiscal 2022-2025, short of the 15 % benchmark. The Rule of 40 gives 19 points against a healthy 35. The 43 % gross margin is far from the 70 % expected of software. Free cash flow was 10 % of revenue, half the 20 % mark. Block generates real cash, but modest amounts for a tech company.

What to expect from the next earnings?

Block reports on November 3, 2026. Analysts expect EPS of $1.03 for the quarter, close to the $1.02 it delivered on August 5, 2026. That last result beat the $0.87 estimate by 17 %. Over the last eight quarters, though, Block has beaten EPS estimates only twice, so one beat does not make a trend. Estimates are steady: the 2026 EPS consensus from 26 analysts has stayed at $4.06 over the last 28 days, and revenue forecasts have barely moved. Of the 39 analysts covering the stock, 30 rate it a buy, 8 a hold and 1 a sell.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.