INTUIT INC (INTU) Stock Fundamental Analysis
NASDAQ:INTU - Nasdaq - US4612021034 - Common Stock - Currency: USD
Taking everything into account, INTU scores 7 out of 10 in our fundamental rating. INTU was compared to 283 industry peers in the Software industry. INTU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. INTU is showing excellent growth while it is valued at reasonable prices. 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.
In the past 5 years INTU has always been profitable.
INTU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INTU's Return On Assets of 9.59% is amongst the best of the industry. INTU outperforms 85.16% of its industry peers.
INTU has a Return On Equity of 16.92%. This is amongst the best in the industry. INTU outperforms 83.04% of its industry peers.
With an excellent Return On Invested Capital value of 13.50%, INTU belongs to the best of the industry, outperforming 91.17% 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 12.21%.
The last Return On Invested Capital (13.50%) for INTU is above the 3 year average (10.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 16.92% | ||
| ROIC | 13.5% |
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 Profit Margin of 17.69%. This is amongst the best in the industry. INTU outperforms 83.04% of its industry peers.
In the last couple of years the Profit Margin of INTU has declined.
INTU has a better Operating Margin (23.62%) than 90.11% of its industry peers.
INTU's Operating Margin has declined in the last couple of years.
INTU has a better Gross Margin (78.97%) than 78.09% of its industry peers.
In the last couple of years the Gross Margin of INTU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 17.69% | ||
| GM | 78.97% |
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.
INTU has more shares outstanding than it did 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 9.99. 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 9.99, INTU belongs to the top of the industry, outperforming 85.51% of the companies in the same industry.
INTU has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
INTU has a better Debt to FCF ratio (1.11) than 72.08% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that INTU is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, INTU perfoms like the industry average, outperforming 41.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 9.99 |
ROIC/WACC1.25
WACC10.84%
2.3 Liquidity
INTU has a Current Ratio of 1.27. 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 (1.27) which is in line with its industry peers.
INTU has a Quick Ratio of 1.27. 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 of 1.27. This is comparable to the rest of the industry: INTU outperforms 40.64% of 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 | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
INTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.89%, which is quite good.
INTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.25% yearly.
The Revenue has grown by 13.73% in the past year. This is quite good.
The Revenue has been growing by 19.14% on average over the past years. This is quite good.
EPS 1Y (TTM)12.89%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%26.24%
Revenue 1Y (TTM)13.73%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%17.04%
3.2 Future
INTU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.28% yearly.
INTU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.32% yearly.
EPS Next Y16.18%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
EPS Next 5Y13.28%
Revenue Next Year13.37%
Revenue Next 2Y12.81%
Revenue Next 3Y12.58%
Revenue Next 5Y13.32%
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
The Price/Earnings ratio is 37.94, which means the current valuation is very expensive for INTU.
Based on the Price/Earnings ratio, INTU is valued a bit cheaper than the industry average as 64.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.60. INTU is valued slightly more expensive when compared to this.
INTU is valuated quite expensively with a Price/Forward Earnings ratio of 29.65.
Based on the Price/Forward Earnings ratio, INTU is valued a bit cheaper than 65.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, INTU is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 29.65 |
4.2 Price Multiples
70.67% of the companies in the same industry are more expensive than INTU, based on the Enterprise Value to EBITDA ratio.
71.73% of the companies in the same industry are more expensive than INTU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.31 | ||
| EV/EBITDA | 39.37 |
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.
The excellent profitability rating of INTU may justify a higher PE ratio.
INTU's earnings are expected to grow with 14.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.34
PEG (5Y)1.87
EPS Next 2Y15.5%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, INTU is not a good candidate for dividend investing.
INTU's Dividend Yield is rather good when compared to the industry average which is at 14.22. INTU pays more dividend than 91.87% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, INTU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
On average, the dividend of INTU grows each year by 13.81%, which is quite nice.
INTU has paid a dividend for at least 10 years, which is a reliable track record.
INTU has decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.81%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
36.68% of the earnings are spent on dividend by INTU. This is a low number and sustainable payout ratio.
INTU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.68%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
671.16
+0.3 (+0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.66%
Inst Owner Change1.71%
Ins Owners0.08%
Ins Owner Change-1.66%
Market Cap187.63B
Analysts80.53
Price Target714.96 (6.53%)
Short Float %1.39%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend3.69
Dividend Growth(5Y)13.81%
DP36.68%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.09%
Min EPS beat(2)4.19%
Max EPS beat(2)25.99%
EPS beat(4)4
Avg EPS beat(4)9.84%
Min EPS beat(4)3.41%
Max EPS beat(4)25.99%
EPS beat(8)8
Avg EPS beat(8)11.21%
EPS beat(12)11
Avg EPS beat(12)15.11%
EPS beat(16)13
Avg EPS beat(16)14.42%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.49%
Max Revenue beat(2)2.53%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-0.63%
Max Revenue beat(4)2.53%
Revenue beat(8)5
Avg Revenue beat(8)0.2%
Revenue beat(12)9
Avg Revenue beat(12)0.6%
Revenue beat(16)11
Avg Revenue beat(16)0.82%
PT rev (1m)-1.51%
PT rev (3m)-3.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.04%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 29.65 | ||
| P/S | 10.93 | ||
| P/FCF | 33.31 | ||
| P/OCF | 32.36 | ||
| P/B | 10.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.37 |
EPS(TTM)17.69
EY2.64%
EPS(NY)22.64
Fwd EY3.37%
FCF(TTM)20.15
FCFY3%
OCF(TTM)20.74
OCFY3.09%
SpS61.41
BVpS64.2
TBVpS-5
PEG (NY)2.34
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 16.92% | ||
| ROCE | 16.54% | ||
| ROIC | 13.5% | ||
| ROICexc | 15.01% | ||
| ROICexgc | 122.63% | ||
| OM | 23.62% | ||
| PM (TTM) | 17.69% | ||
| GM | 78.97% | ||
| FCFM | 32.81% |
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-Score9
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 20.72% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 119.32% | ||
| Profit Quality | 185.45% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 9.99 |
F-Score9
WACC10.84%
ROIC/WACC1.25
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)12.89%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%26.24%
EPS Next Y16.18%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
EPS Next 5Y13.28%
Revenue 1Y (TTM)13.73%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%17.04%
Revenue Next Year13.37%
Revenue Next 2Y12.81%
Revenue Next 3Y12.58%
Revenue Next 5Y13.32%
EBIT growth 1Y16.8%
EBIT growth 3Y15.51%
EBIT growth 5Y15.75%
EBIT Next Year20.48%
EBIT Next 3Y16.29%
EBIT Next 5YN/A
FCF growth 1Y40.2%
FCF growth 3Y14.03%
FCF growth 5Y16.4%
OCF growth 1Y35.78%
OCF growth 3Y14.54%
OCF growth 5Y16.01%