INTUIT INC (NASDAQ:INTU) Balances Strong Growth with Affordable Valuation

Investors looking for growth opportunities at reasonable prices often use screening strategies that balance several fundamental factors. The "Affordable Growth" method focuses on companies showing solid expansion potential while keeping good financial health and profitability, all without requiring high valuation premiums. This process helps find businesses that mix a growth path with financial steadiness, possibly providing good risk-adjusted returns. One company now fitting these standards is INTUIT INC (NASDAQ:INTU).

Growth Path

INTUIT shows notable growth traits that build the base of its attraction as an affordable growth choice. The company's past results and future estimates show a steady pattern of increase across important financial measures.

• Earnings Per Share has grown by 23.88% in the past year, with a high 20.77% average yearly growth over recent years
• Revenue went up by 17.14% in the last year, keeping a solid 19.65% average yearly growth path
• Future estimates point to continued growth with EPS expected to rise by 15.50% and Revenue by 12.44% each year

This solid growth picture is especially notable given INTUIT's settled market position, indicating the company holds meaningful expansion ability regardless of its size. The mix of strong past performance and good forward estimates gives assurance in the durability of the company's growth narrative.

Valuation Check

While growth is important for affordable growth investing, acceptable valuation makes sure investors do not pay too much for that growth possibility. INTUIT shows a varied but mostly acceptable valuation view when weighing its growth outlook and industry setting.

• The company trades at a P/E ratio of 30.11, which seems high in absolute terms but stacks up well against industry counterparts
• INTUIT is less expensive than 63.93% of software industry companies based on P/E ratio
• The forward P/E ratio of 23.51 places INTUIT as more acceptably valued, less expensive than 68.57% of industry rivals
• Enterprise Value to EBITDA and Price/Free Cash Flow ratios both show INTUIT trades at lower levels than most industry counterparts

The valuation appears more interesting when thinking about INTUIT's profitability measures and growth forecasts. The PEG ratio, which changes the P/E for growth, indicates the company is acceptably priced given its expansion outlook, making it suitable for investors looking for growth at acceptable prices.

Profitability and Financial Condition

Beyond growth and valuation, INTUIT performs well in profitability and keeps acceptable financial condition, important parts for lasting growth investing. The company's capacity to produce strong returns while preserving financial steadiness lowers investment risk.

Profitability points of note include:

• Return on Invested Capital of 16.53% is better than 92.50% of software industry counterparts
• Profit Margin of 21.19% is higher than 86.07% of competitors
• Operating Margin of 26.72% places in the top tier of the industry
• Gross Margin of 79.89% shows solid pricing ability and operational effectiveness

Financial condition signs give extra assurance:

• Altman-Z score of 9.62 shows very low bankruptcy risk and is better than 86.43% of industry counterparts
• Debt to Equity ratio of 0.28 shows little reliance on debt financing
• Debt to Free Cash Flow ratio of 0.97 shows good ability to handle debts from operational cash flows

These traits match well with the affordable growth idea, as they indicate the company's expansion is backed by acceptable financial control and operational quality instead of extreme risk-taking.

Investment Points

INTUIT's full fundamental picture, described in the complete fundamental analysis report, shows a company that effectively balances several investment qualities. The mix of solid growth, acceptable valuation relative to that growth, high profitability, and acceptable financial condition builds an interesting case for thought inside a growth-at-acceptable-price plan. While the absolute P/E ratio might make some value investors hesitant, the context of industry standing, growth rates, and profitability measures indicates the valuation could be acceptable for growth-focused investors.

For investors wanting to look into similar possibilities, other companies meeting affordable growth standards can be discovered using this custom stock screen.

Disclaimer: This analysis is based on fundamental data and screening methods for information only. It does not form investment advice, nor does it suggest any specific investment action. Investors should do their own research and think about their personal financial situations before making investment choices.