INTUIT INC (1INTU.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1INTU - US4612021034 - Common Stock
490.1 EUR
-82.7 (-14.44%)
1INTU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 114 industry peers in the Software industry. While 1INTU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1INTU is growing strongly while it is still valued neutral. This is a good combination! This makes 1INTU very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year 1INTU was profitable.
- 1INTU had a positive operating cash flow in the past year.
- In the past 5 years 1INTU has always been profitable.
- 1INTU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1INTU has a Return On Assets of 12.41%. This is amongst the best in the industry. 1INTU outperforms 81.51% of its industry peers.
- 1INTU has a Return On Equity of 21.31%. This is in the better half of the industry: 1INTU outperforms 78.15% of its industry peers.
- The Return On Invested Capital of 1INTU (16.53%) is better than 86.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1INTU is in line with the industry average of 13.49%.
- The 3 year average ROIC (12.89%) for 1INTU is below the current ROIC(16.53%), indicating increased profibility in the last year.
| 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
- The Profit Margin of 1INTU (21.19%) is better than 76.47% of its industry peers.
- In the last couple of years the Profit Margin of 1INTU has declined.
- 1INTU has a better Operating Margin (26.72%) than 84.03% of its industry peers.
- 1INTU's Operating Margin has declined in the last couple of years.
- 1INTU has a Gross Margin of 79.89%. This is in the better half of the industry: 1INTU outperforms 65.55% of its industry peers.
- In the last couple of years the Gross Margin of 1INTU has remained more or less at the same level.
| 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.
- The number of shares outstanding for 1INTU has been increased compared to 5 years ago.
- Compared to 1 year ago, 1INTU has an improved debt to assets ratio.
2.2 Solvency
- 1INTU has an Altman-Z score of 8.97. This indicates that 1INTU is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 8.97, 1INTU belongs to the best of the industry, outperforming 84.87% of the companies in the same industry.
- 1INTU 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.
- 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.
- 1INTU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.28, 1INTU perfoms like the industry average, outperforming 49.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 8.97 |
ROIC/WACC1.5
WACC11.03%
2.3 Liquidity
- 1INTU has a Current 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's Current ratio of 1.39 is in line compared to the rest of the industry. 1INTU outperforms 45.38% of its industry peers.
- A Quick Ratio of 1.39 indicates that 1INTU should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.39, 1INTU perfoms like the industry average, outperforming 49.58% of the companies in the same industry.
| 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.
- 1INTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.77% yearly.
- The Revenue has grown by 17.14% in the past year. This is quite good.
- 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
- Based on estimates for the next years, 1INTU 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, 1INTU 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
- 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
- With a Price/Earnings ratio of 27.32, 1INTU can be considered very expensive at the moment.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, 1INTU is valued at the same level.
- Based on the Price/Forward Earnings ratio of 21.30, the valuation of 1INTU can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, 1INTU is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of 1INTU to the average of the S&P500 Index (25.83), we can say 1INTU is valued inline with the index average.
| 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.
- 69.75% of the companies in the same industry are more expensive than 1INTU, based on the Price/Free Cash Flow ratio.
| 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.
- 1INTU has a very decent profitability rating, which 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.
- With a Dividend Yield of 0.88, 1INTU pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
- On average, the dividend of 1INTU grows each year by 14.61%, which is quite nice.
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%.