INTUIT INC (INTU)
US4612021034 - Common Stock
INTU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 276 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! With these ratings, INTU could be worth investigating further 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.
INTU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INTU has a Return On Assets of 9.33%. This is amongst the best in the industry. INTU outperforms 90.51% of its industry peers.
INTU's Return On Equity of 16.38% is amongst the best of the industry. INTU outperforms 89.05% of its industry peers.
The Return On Invested Capital of INTU (11.91%) is better than 90.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INTU is in line with the industry average of 10.10%.
The 3 year average ROIC (11.59%) for INTU is below the current ROIC(11.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.33% | ||
| ROE | 16.38% | ||
| ROIC | 11.91% |
ROA(3y)9.77%
ROA(5y)14.16%
ROE(3y)15.76%
ROE(5y)24.91%
ROIC(3y)11.59%
ROIC(5y)18.61%
1.3 Margins
Looking at the Profit Margin, with a value of 18.35%, INTU belongs to the top of the industry, outperforming 88.32% of the companies in the same industry.
In the last couple of years the Profit Margin of INTU has declined.
INTU has a better Operating Margin (23.00%) than 93.43% of its industry peers.
In the last couple of years the Operating Margin of INTU has declined.
INTU's Gross Margin of 78.08% is fine compared to the rest of the industry. INTU outperforms 77.37% of its industry peers.
INTU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23% | ||
| PM (TTM) | 18.35% | ||
| GM | 78.08% |
OM growth 3Y-8.29%
OM growth 5Y-4.28%
PM growth 3Y-11.3%
PM growth 5Y-5.54%
GM growth 3Y-1.62%
GM growth 5Y-1.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so INTU is still creating some value.
The number of shares outstanding for INTU has been reduced compared to 1 year ago.
INTU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, INTU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.89 indicates that INTU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.89, INTU belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
INTU has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
The Debt to FCF ratio of INTU (1.27) is better than 74.45% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that INTU is not too dependend on debt financing.
INTU has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: INTU outperforms 42.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 9.89 |
ROIC/WACC1.19
WACC9.97%
2.3 Liquidity
A Current Ratio of 1.17 indicates that INTU should not have too much problems paying its short term obligations.
INTU has a worse Current ratio (1.17) than 69.71% of its industry peers.
INTU has a Quick Ratio of 1.17. 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 worse Quick ratio (1.17) than 67.52% of its industry peers.
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 | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.27% over the past year.
INTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.84% yearly.
Looking at the last year, INTU shows a quite strong growth in Revenue. The Revenue has grown by 10.30% in the last year.
Measured over the past years, INTU shows a quite strong growth in Revenue. The Revenue has been growing by 18.98% on average per year.
EPS 1Y (TTM)24.27%
EPS 3Y22.4%
EPS 5Y20.84%
EPS growth Q2Q19.55%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y23.22%
Revenue growth 5Y18.98%
Revenue growth Q2Q11.34%
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 14.72% on average per year.
INTU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.75% yearly.
EPS Next Y15.99%
EPS Next 2Y15.49%
EPS Next 3Y15.13%
EPS Next 5Y14.72%
Revenue Next Year12.21%
Revenue Next 2Y12.34%
Revenue Next 3Y12.48%
Revenue Next 5Y12.75%
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 40.62, INTU can be considered very expensive at the moment.
67.88% of the companies in the same industry are more expensive than INTU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.92, INTU is valued quite expensively.
With a Price/Forward Earnings ratio of 33.07, INTU can be considered very expensive at the moment.
68.25% 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 21.49. INTU is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.62 | ||
| Fwd PE | 33.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INTU indicates a somewhat cheap valuation: INTU is cheaper than 71.90% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INTU indicates a somewhat cheap valuation: INTU is cheaper than 69.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.12 | ||
| EV/EBITDA | 42.39 |
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 15.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.54
PEG (5Y)1.95
EPS Next 2Y15.49%
EPS Next 3Y15.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, 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 11.59. INTU pays more dividend than 91.61% of the companies in the same industry.
With a Dividend Yield of 0.57, INTU pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of INTU grows each year by 14.89%, which is quite nice.
INTU has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of INTU decreased recently.
Dividend Growth(5Y)14.89%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
34.62% of the earnings are spent on dividend by INTU. This is a low number and sustainable payout ratio.
The dividend of INTU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.62%
EPS Next 2Y15.49%
EPS Next 3Y15.13%
INTUIT INC
NASDAQ:INTU (4/26/2024, 7:00:02 PM)
After market: 636.55 0 (0%)636.55
+10.16 (+1.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap178.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.62 | ||
| Fwd PE | 33.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.54
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.33% | ||
| ROE | 16.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23% | ||
| PM (TTM) | 18.35% | ||
| GM | 78.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.27%
EPS 3Y22.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.3%
Revenue growth 3Y23.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y