INTUIT INC (1INTU.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1INTU - US4612021034 - Common Stock
490.1 EUR
-82.7 (-14.44%)
Taking everything into account, 1INTU scores 6 out of 10 in our fundamental rating. 1INTU was compared to 114 industry peers in the Software industry. 1INTU scores excellent on profitability, but there are some minor concerns on its financial health. 1INTU is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make 1INTU a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- 1INTU had positive earnings in the past year.
- In the past year 1INTU had a positive cash flow from operations.
- Each year in the past 5 years 1INTU has been profitable.
- In the past 5 years 1INTU always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 12.41%, 1INTU belongs to the best of the industry, outperforming 81.51% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 21.31%, 1INTU is in the better half of the industry, outperforming 78.15% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 16.53%, 1INTU belongs to the top of the industry, outperforming 86.55% of the companies in the same industry.
- 1INTU had an Average Return On Invested Capital over the past 3 years of 12.89%. This is in line with the industry average of 13.49%.
- The last Return On Invested Capital (16.53%) for 1INTU 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
- 1INTU has a better Profit Margin (21.19%) than 76.47% of its industry peers.
- In the last couple of years the Profit Margin of 1INTU has declined.
- With an excellent Operating Margin value of 26.72%, 1INTU belongs to the best of the industry, outperforming 84.03% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1INTU has declined.
- 1INTU's Gross Margin of 79.89% is fine compared to the rest of the industry. 1INTU outperforms 65.55% of its industry peers.
- 1INTU'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
- 1INTU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- 1INTU has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1INTU has more shares outstanding
- 1INTU has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.97 indicates that 1INTU is not in any danger for bankruptcy at the moment.
- 1INTU's Altman-Z score of 8.97 is amongst the best of the industry. 1INTU outperforms 84.87% of its industry peers.
- The Debt to FCF ratio of 1INTU is 0.97, which is an excellent value as it means it would take 1INTU, only 0.97 years of fcf income to pay off all of its debts.
- 1INTU's Debt to FCF ratio of 0.97 is fine compared to the rest of the industry. 1INTU outperforms 77.31% of its industry peers.
- A Debt/Equity ratio of 0.28 indicates that 1INTU is not too dependend on debt financing.
- 1INTU has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: 1INTU outperforms 49.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 8.97 |
ROIC/WACC1.5
WACC11.03%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that 1INTU should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.39, 1INTU is in line with its industry, outperforming 45.38% of the companies in the same industry.
- 1INTU has a Quick Ratio of 1.39. This is a normal value and indicates that 1INTU is financially healthy and should not expect problems in meeting its short term obligations.
- 1INTU has a Quick ratio (1.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
- 1INTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.88%, which is quite impressive.
- Measured over the past years, 1INTU shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.77% on average per year.
- Looking at the last year, 1INTU shows a quite strong growth in Revenue. The Revenue has grown by 17.14% in the last year.
- Measured over the past years, 1INTU shows a quite strong growth in Revenue. The Revenue has been growing by 19.65% on average per year.
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
- 1INTU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.50% yearly.
- The Revenue is expected to grow by 12.57% on average over the next years. This is quite good.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- 1INTU is valuated quite expensively with a Price/Earnings ratio of 27.32.
- 1INTU's Price/Earnings ratio is a bit cheaper when compared to the industry. 1INTU is cheaper than 67.23% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1INTU to the average of the S&P500 Index (28.87), we can say 1INTU is valued inline with the index average.
- A Price/Forward Earnings ratio of 21.30 indicates a rather expensive valuation of 1INTU.
- 1INTU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1INTU is cheaper than 71.43% of the companies in the same industry.
- 1INTU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1INTU is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1INTU indicates a somewhat cheap valuation: 1INTU is cheaper than 69.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.21 | ||
| EV/EBITDA | 27.02 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 1INTU may justify a higher PE ratio.
- 1INTU's earnings are expected to grow with 15.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)1.32
EPS Next 2Y15.6%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.88%, 1INTU is not a good candidate for dividend investing.
- 1INTU's Dividend Yield is a higher than the industry average which is at 0.68.
- Compared to an average S&P500 Dividend Yield of 1.82, 1INTU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
- The dividend of 1INTU is nicely growing with an annual growth rate of 14.61%!
Dividend Growth(5Y)14.61%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1INTU pays out 29.97% of its income as dividend. This is a sustainable payout ratio.
- 1INTU's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP29.97%
EPS Next 2Y15.6%
EPS Next 3Y15.45%
INTUIT INC / 1INTU.MI FAQ
What is the ChartMill fundamental rating of INTUIT INC (1INTU.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1INTU.MI.
What is the valuation status for 1INTU stock?
ChartMill assigns a valuation rating of 4 / 10 to INTUIT INC (1INTU.MI). This can be considered as Fairly Valued.
How profitable is INTUIT INC (1INTU.MI) stock?
INTUIT INC (1INTU.MI) has a profitability rating of 7 / 10.
Can you provide the financial health for 1INTU stock?
The financial health rating of INTUIT INC (1INTU.MI) is 6 / 10.
Is the dividend of INTUIT INC sustainable?
The dividend rating of INTUIT INC (1INTU.MI) is 4 / 10 and the dividend payout ratio is 29.97%.