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 282 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 could make INTU a good candidate 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.
INTU had positive earnings in each of the past 5 years.
Each year in the past 5 years INTU had a positive operating cash flow.
1.2 Ratios
INTU's Return On Assets of 9.48% is amongst the best of the industry. INTU outperforms 85.82% of its industry peers.
With an excellent Return On Equity value of 17.23%, INTU belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.15%, INTU belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for INTU is in line with the industry average of 12.11%.
The 3 year average ROIC (10.72%) for INTU is below the current ROIC(14.15%), indicating increased profibility in the last year.
| 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 86.88% of its industry peers.
INTU's Profit Margin has declined in the last couple of years.
INTU has a Operating Margin of 25.68%. This is amongst the best in the industry. INTU outperforms 92.20% of its industry peers.
In the last couple of years the Operating Margin of INTU has declined.
With a decent Gross Margin value of 79.45%, INTU is doing good in the industry, outperforming 79.08% of the companies in the same industry.
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 | 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
INTU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for INTU remains at a similar level compared to 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 9.70. This indicates that INTU is financially healthy and has little risk of bankruptcy at the moment.
INTU's Altman-Z score of 9.70 is amongst the best of the industry. INTU outperforms 85.46% of its industry peers.
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.
The Debt to FCF ratio of INTU (1.05) is better than 74.11% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that INTU is not too dependend on debt financing.
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 | 9.7 |
ROIC/WACC1.39
WACC10.18%
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.
With a Current ratio value of 1.45, INTU perfoms like the industry average, outperforming 46.45% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that INTU should not have too much problems paying its short term obligations.
The Quick ratio of INTU (1.45) 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 | 1.45 | ||
| 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.
INTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.25% yearly.
Looking at the last year, INTU shows a quite strong growth in Revenue. The Revenue has grown by 14.99% in the last year.
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
INTU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.94% yearly.
The Revenue is expected to grow by 13.61% on average over the next years. This is quite good.
EPS Next Y20.74%
EPS Next 2Y17.55%
EPS Next 3Y16.79%
EPS Next 5Y14.94%
Revenue Next Year15.85%
Revenue Next 2Y14.18%
Revenue Next 3Y13.71%
Revenue Next 5Y13.61%
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 39.88, INTU can be considered very expensive at the moment.
INTU's Price/Earnings ratio is a bit cheaper when compared to the industry. INTU is cheaper than 62.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. INTU is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 33.10 indicates a quite expensive valuation of INTU.
Based on the Price/Forward Earnings ratio, INTU is valued a bit cheaper than 60.99% of the companies in the same industry.
INTU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.88 | ||
| Fwd PE | 33.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INTU is valued a bit cheaper than 68.44% of the companies in the same industry.
INTU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. INTU is cheaper than 68.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.48 | ||
| EV/EBITDA | 39.42 |
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 16.79% in the coming years.
PEG (NY)1.92
PEG (5Y)1.97
EPS Next 2Y17.55%
EPS Next 3Y16.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, 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 35.29. INTU pays more dividend than 90.78% of the companies in the same industry.
With a Dividend Yield of 0.53, INTU pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of INTU is nicely growing with an annual growth rate of 13.81%!
INTU has been paying a dividend for at least 10 years, so it has 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
33.13% of the earnings are spent on dividend by INTU. This is a low number and 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 2Y17.55%
EPS Next 3Y16.79%
776.15
-8.98 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.79%
Inst Owner Change-1.51%
Ins Owners0.08%
Ins Owner Change-0.69%
Market Cap216.51B
Analysts81.58
Price Target828.22 (6.71%)
Short Float %1.7%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)2.88%
PT rev (3m)15.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)0%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.64%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.88 | ||
| Fwd PE | 33.1 | ||
| P/S | 11.91 | ||
| P/FCF | 35.48 | ||
| P/OCF | 34.68 | ||
| P/B | 10.76 | ||
| P/tB | 245.75 | ||
| EV/EBITDA | 39.42 |
EPS(TTM)19.46
EY2.51%
EPS(NY)23.45
Fwd EY3.02%
FCF(TTM)21.87
FCFY2.82%
OCF(TTM)22.38
OCFY2.88%
SpS65.19
BVpS72.15
TBVpS3.16
PEG (NY)1.92
PEG (5Y)1.97
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 | 9.7 |
F-Score6
WACC10.18%
ROIC/WACC1.39
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 Y20.74%
EPS Next 2Y17.55%
EPS Next 3Y16.79%
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 2Y14.18%
Revenue Next 3Y13.71%
Revenue Next 5Y13.61%
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%