INTUIT INC (INTU) Stock Fundamental Analysis
NASDAQ:INTU - Nasdaq - US4612021034 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to INTU. INTU was compared to 284 industry peers in the Software industry. INTU gets an excellent profitability rating and is at the same time showing great financial health properties. INTU is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make INTU a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
INTU had positive earnings in the past year.
INTU had a positive operating cash flow in the past year.
INTU had positive earnings in each of the past 5 years.
INTU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INTU has a Return On Assets of 9.48%. This is amongst the best in the industry. INTU outperforms 86.27% of its industry peers.
With an excellent Return On Equity value of 17.23%, INTU belongs to the best of the industry, outperforming 85.21% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.15%, INTU belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for INTU is in line with the industry average of 12.30%.
The last Return On Invested Capital (14.15%) for INTU is above the 3 year average (10.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 17.23% | ||
| ROIC | 14.15% |
ROA(3y)8.42%
ROA(5y)11.05%
ROE(3y)14.15%
ROE(5y)19.82%
ROIC(3y)10.72%
ROIC(5y)14.4%
1.3 Margins
INTU has a better Profit Margin (19.07%) than 86.97% of its industry peers.
INTU's Profit Margin has declined in the last couple of years.
INTU has a better Operating Margin (25.68%) than 91.90% of its industry peers.
In the last couple of years the Operating Margin of INTU has declined.
INTU has a Gross Margin of 79.45%. This is in the better half of the industry: INTU outperforms 78.87% of its industry peers.
INTU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.68% | ||
| PM (TTM) | 19.07% | ||
| GM | 79.45% |
OM growth 3Y-3.04%
OM growth 5Y-2.84%
PM growth 3Y-5.27%
PM growth 5Y-4.54%
GM growth 3Y-1.56%
GM growth 5Y-1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), INTU is creating some value.
INTU has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for INTU has been increased compared to 5 years ago.
The debt/assets ratio for INTU has been reduced compared to a year ago.
2.2 Solvency
INTU has an Altman-Z score of 9.65. This indicates that INTU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.65, INTU belongs to the top of the industry, outperforming 83.80% of the companies in the same industry.
The Debt to FCF ratio of INTU is 1.05, which is an excellent value as it means it would take INTU, only 1.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.05, INTU is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
INTU has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
INTU has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 9.65 |
ROIC/WACC1.27
WACC11.17%
2.3 Liquidity
INTU has a Current Ratio of 1.45. This is a normal value and indicates that INTU is financially healthy and should not expect problems in meeting its short term obligations.
INTU has a Current ratio of 1.45. This is comparable to the rest of the industry: INTU outperforms 46.48% of its industry peers.
INTU has a Quick Ratio of 1.45. This is a normal value and indicates that INTU is financially healthy and should not expect problems in meeting its short term obligations.
INTU has a Quick ratio (1.45) which is in line with its industry peers.
The current and quick ratio evaluation for INTU is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
INTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.02%, which is quite good.
The Earnings Per Share has been growing by 20.25% on average over the past years. This is a very strong growth
INTU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.99%.
Measured over the past years, INTU shows a quite strong growth in Revenue. The Revenue has been growing by 19.14% on average per year.
EPS 1Y (TTM)17.02%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%17.91%
Revenue 1Y (TTM)14.99%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%15.1%
3.2 Future
The Earnings Per Share is expected to grow by 14.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.77% on average over the next years. This is quite good.
EPS Next Y16.18%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
EPS Next 5Y14.94%
Revenue Next Year15.85%
Revenue Next 2Y14.14%
Revenue Next 3Y13.62%
Revenue Next 5Y13.77%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 39.28, INTU can be considered very expensive at the moment.
Based on the Price/Earnings ratio, INTU is valued a bit cheaper than 64.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.53. INTU is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 33.77 indicates a quite expensive valuation of INTU.
60.21% of the companies in the same industry are more expensive than INTU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.27. INTU is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.28 | ||
| Fwd PE | 33.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INTU is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INTU indicates a somewhat cheap valuation: INTU is cheaper than 71.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.94 | ||
| EV/EBITDA | 39.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INTU does not grow enough to justify the current Price/Earnings ratio.
INTU has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as INTU's earnings are expected to grow with 14.95% in the coming years.
PEG (NY)2.43
PEG (5Y)1.94
EPS Next 2Y15.5%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
INTU has a yearly dividend return of 0.54%, which is pretty low.
INTU's Dividend Yield is rather good when compared to the industry average which is at 16.44. INTU pays more dividend than 90.49% of the companies in the same industry.
With a Dividend Yield of 0.54, INTU pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of INTU is nicely growing with an annual growth rate of 13.81%!
INTU has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of INTU decreased in the last 3 years.
Dividend Growth(5Y)13.81%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
INTU pays out 33.13% of its income as dividend. This is a sustainable payout ratio.
INTU's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP33.13%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
764.38
-7.2 (-0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.66%
Inst Owner Change1.62%
Ins Owners0.08%
Ins Owner Change-1.38%
Market Cap213.22B
Analysts81.03
Price Target802.52 (4.99%)
Short Float %1.37%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend3.69
Dividend Growth(5Y)13.81%
DP33.13%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.35%
Min EPS beat(2)4.72%
Max EPS beat(2)25.99%
EPS beat(4)4
Avg EPS beat(4)10.16%
Min EPS beat(4)4.19%
Max EPS beat(4)25.99%
EPS beat(8)8
Avg EPS beat(8)11.41%
EPS beat(12)12
Avg EPS beat(12)15.59%
EPS beat(16)14
Avg EPS beat(16)15.22%
Revenue beat(2)2
Avg Revenue beat(2)1.01%
Min Revenue beat(2)0.53%
Max Revenue beat(2)1.49%
Revenue beat(4)4
Avg Revenue beat(4)1.45%
Min Revenue beat(4)0.53%
Max Revenue beat(4)2.53%
Revenue beat(8)6
Avg Revenue beat(8)0.66%
Revenue beat(12)9
Avg Revenue beat(12)0.63%
Revenue beat(16)12
Avg Revenue beat(16)1.29%
PT rev (1m)11.6%
PT rev (3m)9.47%
EPS NQ rev (1m)2.36%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)6.67%
Revenue NQ rev (3m)5.93%
Revenue NY rev (1m)2.19%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.28 | ||
| Fwd PE | 33.77 | ||
| P/S | 11.73 | ||
| P/FCF | 34.94 | ||
| P/OCF | 34.15 | ||
| P/B | 10.59 | ||
| P/tB | 242.02 | ||
| EV/EBITDA | 39.19 |
EPS(TTM)19.46
EY2.55%
EPS(NY)22.64
Fwd EY2.96%
FCF(TTM)21.87
FCFY2.86%
OCF(TTM)22.38
OCFY2.93%
SpS65.19
BVpS72.15
TBVpS3.16
PEG (NY)2.43
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 17.23% | ||
| ROCE | 17.34% | ||
| ROIC | 14.15% | ||
| ROICexc | 18.35% | ||
| ROICexgc | 250.58% | ||
| OM | 25.68% | ||
| PM (TTM) | 19.07% | ||
| GM | 79.45% | ||
| FCFM | 33.56% |
ROA(3y)8.42%
ROA(5y)11.05%
ROE(3y)14.15%
ROE(5y)19.82%
ROIC(3y)10.72%
ROIC(5y)14.4%
ROICexc(3y)12.66%
ROICexc(5y)113.04%
ROICexgc(3y)3468.52%
ROICexgc(5y)N/A
ROCE(3y)13.13%
ROCE(5y)17.65%
ROICexcg growth 3Y-40.09%
ROICexcg growth 5YN/A
ROICexc growth 3Y-12.33%
ROICexc growth 5Y-30.74%
OM growth 3Y-3.04%
OM growth 5Y-2.84%
PM growth 3Y-5.27%
PM growth 5Y-4.54%
GM growth 3Y-1.56%
GM growth 5Y-1%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 17.43% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 113.94% | ||
| Profit Quality | 175.95% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 9.65 |
F-Score6
WACC11.17%
ROIC/WACC1.27
Cap/Depr(3y)31.55%
Cap/Depr(5y)38.38%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.65%
Profit Quality(3y)178.1%
Profit Quality(5y)162.11%
High Growth Momentum
Growth
EPS 1Y (TTM)17.02%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%17.91%
EPS Next Y16.18%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
EPS Next 5Y14.94%
Revenue 1Y (TTM)14.99%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%15.1%
Revenue Next Year15.85%
Revenue Next 2Y14.14%
Revenue Next 3Y13.62%
Revenue Next 5Y13.77%
EBIT growth 1Y22.96%
EBIT growth 3Y15.51%
EBIT growth 5Y15.75%
EBIT Next Year21.48%
EBIT Next 3Y15.52%
EBIT Next 5YN/A
FCF growth 1Y43.17%
FCF growth 3Y14.03%
FCF growth 5Y16.4%
OCF growth 1Y37.42%
OCF growth 3Y14.54%
OCF growth 5Y16.01%