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! This makes INTU very considerable 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.
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
The Return On Assets of INTU (9.48%) is better than 86.17% of its industry peers.
INTU's Return On Equity of 17.23% is amongst the best of the industry. INTU outperforms 85.11% of its industry peers.
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 12.26%.
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 86.88% 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 91.84% of its industry peers.
INTU's Operating Margin has declined in the last couple of years.
INTU's Gross Margin of 79.45% is fine compared to the rest of the industry. INTU outperforms 78.72% 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
INTU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
INTU has about the same amout of shares outstanding than it did 1 year ago.
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 9.81 indicates that INTU is not in any danger for bankruptcy at the moment.
The Altman-Z score of INTU (9.81) is better than 83.69% of its industry peers.
INTU has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of 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 | 9.81 |
ROIC/WACC1.62
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.45 indicates that INTU should not have too much problems paying its short term obligations.
INTU has a Current ratio of 1.45. This is comparable to the rest of the industry: INTU outperforms 46.45% 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 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
The Earnings Per Share has grown by an nice 17.02% over the past year.
Measured over the past years, INTU shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.25% on average per year.
The Revenue has grown by 14.99% in the past year. This is quite good.
INTU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.14% yearly.
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.
INTU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.61% yearly.
EPS Next Y20.75%
EPS Next 2Y17.49%
EPS Next 3Y16.66%
EPS Next 5Y14.94%
Revenue Next Year15.85%
Revenue Next 2Y14.13%
Revenue Next 3Y13.61%
Revenue Next 5Y13.61%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 40.06, 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 63.83% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of INTU to the average of the S&P500 Index (27.21), we can say INTU is valued slightly more expensively.
The Price/Forward Earnings ratio is 33.28, which means the current valuation is very expensive for INTU.
Based on the Price/Forward Earnings ratio, INTU is valued a bit cheaper than 60.64% of the companies in the same industry.
INTU is valuated expensively when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.06 | ||
| Fwd PE | 33.28 |
4.2 Price Multiples
INTU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. INTU is cheaper than 70.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INTU is valued a bit cheaper than the industry average as 70.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.64 | ||
| EV/EBITDA | 40.01 |
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 16.66% in the coming years.
PEG (NY)1.93
PEG (5Y)1.98
EPS Next 2Y17.49%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
INTU has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 16.20, INTU pays a better dividend. On top of this INTU pays more dividend than 90.78% of the companies listed in the same industry.
With a Dividend Yield of 0.54, INTU pays less dividend than the S&P500 average, which is at 2.42.
| 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 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 2Y17.49%
EPS Next 3Y16.66%
779.61
-8.02 (-1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.79%
Inst Owner Change1.62%
Ins Owners0.08%
Ins Owner Change-0.83%
Market Cap217.47B
Analysts81.03
Price Target805.04 (3.26%)
Short Float %1.55%
Short Ratio2.45
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)12.6%
PT rev (3m)10.54%
EPS NQ rev (1m)2.36%
EPS NQ rev (3m)2.36%
EPS NY rev (1m)3.93%
EPS NY rev (3m)3.93%
Revenue NQ rev (1m)6.67%
Revenue NQ rev (3m)6.67%
Revenue NY rev (1m)2.19%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.06 | ||
| Fwd PE | 33.28 | ||
| P/S | 11.96 | ||
| P/FCF | 35.64 | ||
| P/OCF | 34.83 | ||
| P/B | 10.81 | ||
| P/tB | 246.85 | ||
| EV/EBITDA | 40.01 |
EPS(TTM)19.46
EY2.5%
EPS(NY)23.43
Fwd EY3%
FCF(TTM)21.87
FCFY2.81%
OCF(TTM)22.38
OCFY2.87%
SpS65.19
BVpS72.15
TBVpS3.16
PEG (NY)1.93
PEG (5Y)1.98
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 | 9.81 |
F-Score6
WACC8.76%
ROIC/WACC1.62
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 Y20.75%
EPS Next 2Y17.49%
EPS Next 3Y16.66%
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 2Y14.13%
Revenue Next 3Y13.61%
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%