563.965 USD
+16.27 (+2.97%)
563.312 USD
-0.65 (-0.12%)
Taking everything into account, INTU scores 7 out of 10 in our fundamental rating. INTU was compared to 278 industry peers in the Software industry. INTU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. INTU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make INTU suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year INTU was profitable.
- INTU had a positive operating cash flow in the past year.
- Each year in the past 5 years INTU has been profitable.
- Each year in the past 5 years INTU had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.41%, INTU belongs to the top of the industry, outperforming 90.29% of the companies in the same industry.
- INTU has a Return On Equity of 21.31%. This is amongst the best in the industry. INTU outperforms 88.49% of its industry peers.
- INTU has a better Return On Invested Capital (16.53%) than 93.17% of its industry peers.
- INTU had an Average Return On Invested Capital over the past 3 years of 12.89%. This is above the industry average of 10.74%.
- The last Return On Invested Capital (16.53%) for INTU is above the 3 year average (12.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 21.31% | ||
| ROIC | 16.53% |
ROA(3y)9.42%
ROA(5y)9.8%
ROE(3y)16.5%
ROE(5y)16.59%
ROIC(3y)12.89%
ROIC(5y)12.66%
1.3 Margins
- Looking at the Profit Margin, with a value of 21.19%, INTU belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
- In the last couple of years the Profit Margin of INTU has declined.
- Looking at the Operating Margin, with a value of 26.72%, INTU belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
- In the last couple of years the Operating Margin of INTU has declined.
- INTU has a better Gross Margin (79.89%) than 80.94% of its industry peers.
- INTU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.72% | ||
| PM (TTM) | 21.19% | ||
| GM | 79.89% |
OM growth 3Y9.08%
OM growth 5Y-1.54%
PM growth 3Y8.17%
PM growth 5Y-2.88%
GM growth 3Y-0.63%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
- INTU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, INTU has less shares outstanding
- Compared to 5 years ago, INTU has more shares outstanding
- The debt/assets ratio for INTU has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.83 indicates that INTU is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.83, INTU belongs to the top of the industry, outperforming 87.05% of the companies in the same industry.
- INTU has a debt to FCF ratio of 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of all of its debts.
- The Debt to FCF ratio of INTU (0.97) is better than 75.90% of its industry peers.
- INTU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- INTU's Debt to Equity ratio of 0.28 is in line compared to the rest of the industry. INTU outperforms 40.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 8.83 |
ROIC/WACC1.5
WACC11.04%
2.3 Liquidity
- INTU has a Current Ratio of 1.39. This is a normal value and indicates that INTU is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.39, INTU perfoms like the industry average, outperforming 42.81% of the companies in the same industry.
- INTU has a Quick Ratio of 1.39. 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 (1.39) which is comparable to the rest of the industry.
- INTU does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.88% over the past year.
- INTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.77% yearly.
- Looking at the last year, INTU shows a quite strong growth in Revenue. The Revenue has grown by 17.14% in the last year.
- The Revenue has been growing by 19.65% on average over the past years. This is quite good.
EPS 1Y (TTM)23.88%
EPS 3Y19.56%
EPS 5Y20.77%
EPS Q2Q%33.6%
Revenue 1Y (TTM)17.14%
Revenue growth 3Y13.95%
Revenue growth 5Y19.65%
Sales Q2Q%18.34%
3.2 Future
- Based on estimates for the next years, INTU will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.50% on average per year.
- Based on estimates for the next years, INTU will show a quite strong growth in Revenue. The Revenue will grow by 12.57% on average per year.
EPS Next Y17.05%
EPS Next 2Y15.6%
EPS Next 3Y15.45%
EPS Next 5Y15.5%
Revenue Next Year13.16%
Revenue Next 2Y12.83%
Revenue Next 3Y12.87%
Revenue Next 5Y12.57%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 26.78, INTU can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of INTU indicates a somewhat cheap valuation: INTU is cheaper than 66.19% of the companies listed in the same industry.
- INTU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 20.87, the valuation of INTU can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INTU indicates a somewhat cheap valuation: INTU is cheaper than 71.94% of the companies listed in the same industry.
- INTU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.78 | ||
| Fwd PE | 20.87 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, INTU is valued a bit cheaper than 71.22% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, INTU is valued a bit cheaper than 74.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.7 | ||
| EV/EBITDA | 26.49 |
4.3 Compensation for Growth
- INTU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of INTU may justify a higher PE ratio.
- INTU's earnings are expected to grow with 15.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.57
PEG (5Y)1.29
EPS Next 2Y15.6%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
- INTU has a yearly dividend return of 0.88%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.54, INTU pays a better dividend. On top of this INTU pays more dividend than 91.37% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, INTU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
- On average, the dividend of INTU grows each year by 14.61%, 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)14.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- INTU pays out 29.97% of its income as dividend. This is a sustainable payout ratio.
- The dividend of INTU is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP29.97%
EPS Next 2Y15.6%
EPS Next 3Y15.45%
INTUIT INC / INTU FAQ
What is the ChartMill fundamental rating of INTUIT INC (INTU) stock?
ChartMill assigns a fundamental rating of 7 / 10 to INTU.
What is the valuation status for INTU stock?
ChartMill assigns a valuation rating of 5 / 10 to INTUIT INC (INTU). This can be considered as Fairly Valued.
What is the profitability of INTU stock?
INTUIT INC (INTU) has a profitability rating of 8 / 10.
What are the PE and PB ratios of INTUIT INC (INTU) stock?
The Price/Earnings (PE) ratio for INTUIT INC (INTU) is 26.78 and the Price/Book (PB) ratio is 8.12.
What is the earnings growth outlook for INTUIT INC?
The Earnings per Share (EPS) of INTUIT INC (INTU) is expected to grow by 17.05% in the next year.