INTUIT INC (INTU)
US4612021034 - Common Stock
Taking everything into account, INTU scores 7 out of 10 in our fundamental rating. INTU was compared to 280 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make INTU suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
INTU had positive earnings in the past year.
In the past year INTU had a positive cash flow from operations.
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
The Return On Assets of INTU (8.79%) is better than 85.30% of its industry peers.
INTU has a Return On Equity of 16.10%. This is amongst the best in the industry. INTU outperforms 84.95% of its industry peers.
INTU has a Return On Invested Capital of 12.71%. This is amongst the best in the industry. INTU outperforms 89.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INTU is in line with the industry average of 12.22%.
The last Return On Invested Capital (12.71%) for INTU is above the 3 year average (10.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 16.1% | ||
| ROIC | 12.71% |
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
The Profit Margin of INTU (17.59%) is better than 84.95% of its industry peers.
In the last couple of years the Profit Margin of INTU has declined.
Looking at the Operating Margin, with a value of 23.06%, INTU belongs to the top of the industry, outperforming 90.68% of the companies in the same industry.
In the last couple of years the Operating Margin of INTU has declined.
INTU's Gross Margin of 78.73% is fine compared to the rest of the industry. INTU outperforms 75.99% of its industry peers.
INTU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.06% | ||
| PM (TTM) | 17.59% | ||
| GM | 78.73% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), INTU is creating some value.
The number of shares outstanding for INTU remains at a similar level compared to 1 year ago.
Compared to 5 years ago, INTU has more shares outstanding
Compared to 1 year ago, INTU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.88 indicates that INTU is not in any danger for bankruptcy at the moment.
INTU's Altman-Z score of 8.88 is fine compared to the rest of the industry. INTU outperforms 74.91% of its industry peers.
INTU has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.19, INTU is doing good in the industry, outperforming 70.97% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that INTU is not too dependend on debt financing.
The Debt to Equity ratio of INTU (0.31) is worse than 62.37% of its industry peers.
Although INTU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 8.88 |
ROIC/WACC1.08
WACC11.81%
2.3 Liquidity
A Current Ratio of 1.24 indicates that INTU should not have too much problems paying its short term obligations.
INTU has a worse Current ratio (1.24) than 64.16% of its industry peers.
A Quick Ratio of 1.24 indicates that INTU should not have too much problems paying its short term obligations.
INTU has a worse Quick ratio (1.24) than 63.80% of its industry peers.
The current and quick ratio evaluation for INTU is rather negative, while it does have 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 | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.55% over the past year.
INTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.25% yearly.
INTU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.48%.
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)11.55%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%1.21%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%10.24%
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 16.61% yearly.
Based on estimates for the next years, INTU will show a quite strong growth in Revenue. The Revenue will grow by 13.64% on average per year.
EPS Next Y15.93%
EPS Next 2Y15.34%
EPS Next 3Y15.17%
EPS Next 5Y16.61%
Revenue Next Year12.94%
Revenue Next 2Y12.63%
Revenue Next 3Y12.53%
Revenue Next 5Y13.64%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 38.01 indicates a quite expensive valuation of INTU.
INTU's Price/Earnings ratio is a bit cheaper when compared to the industry. INTU is cheaper than 66.31% of the companies in the same industry.
INTU is valuated rather expensively when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.62, INTU can be considered very expensive at the moment.
INTU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. INTU is cheaper than 69.53% of the companies in the same industry.
INTU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.01 | ||
| Fwd PE | 28.62 |
4.2 Price Multiples
71.68% of the companies in the same industry are more expensive than INTU, based on the Enterprise Value to EBITDA ratio.
73.48% of the companies in the same industry are more expensive than INTU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.16 | ||
| EV/EBITDA | 39.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 15.17% in the coming years.
PEG (NY)2.39
PEG (5Y)1.88
EPS Next 2Y15.34%
EPS Next 3Y15.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, INTU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.95, INTU pays a better dividend. On top of this INTU pays more dividend than 91.40% of the companies listed in the same industry.
With a Dividend Yield of 0.65, INTU pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of INTU is nicely growing with an annual growth rate of 13.84%!
INTU has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of INTU decreased in the last 3 years.
Dividend Growth(5Y)13.84%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
INTU pays out 36.66% of its income as dividend. This is a sustainable payout ratio.
The dividend of INTU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.66%
EPS Next 2Y15.34%
EPS Next 3Y15.17%
INTUIT INC
NASDAQ:INTU (12/26/2024, 8:22:07 PM)
After market: 646.19 0 (0%)646.19
+0.9 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.67%
Inst Owner Change-0.23%
Ins Owners0.09%
Ins Owner Change1.67%
Market Cap180.88B
Analysts80.54
Price Target741.68 (14.78%)
Short Float %1.41%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Dividend Growth(5Y)13.84%
DP36.66%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.97%
Min EPS beat(2)4.19%
Max EPS beat(2)5.76%
EPS beat(4)4
Avg EPS beat(4)6.37%
Min EPS beat(4)3.41%
Max EPS beat(4)12.12%
EPS beat(8)8
Avg EPS beat(8)14.2%
EPS beat(12)10
Avg EPS beat(12)11.45%
EPS beat(16)12
Avg EPS beat(16)11.14%
Revenue beat(2)2
Avg Revenue beat(2)1.9%
Min Revenue beat(2)1.27%
Max Revenue beat(2)2.53%
Revenue beat(4)2
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)2.53%
Revenue beat(8)5
Avg Revenue beat(8)0.33%
Revenue beat(12)8
Avg Revenue beat(12)0.15%
Revenue beat(16)10
Avg Revenue beat(16)-0.01%
PT rev (1m)-0.23%
PT rev (3m)1.12%
EPS NQ rev (1m)-11.54%
EPS NQ rev (3m)-15.64%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.01 | ||
| Fwd PE | 28.62 | ||
| P/S | 10.9 | ||
| P/FCF | 35.16 | ||
| P/OCF | 33.85 | ||
| P/B | 9.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.6 |
EPS(TTM)17
EY2.63%
EPS(NY)22.58
Fwd EY3.49%
FCF(TTM)18.38
FCFY2.84%
OCF(TTM)19.09
OCFY2.95%
SpS59.27
BVpS64.79
TBVpS-4.89
PEG (NY)2.39
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 16.1% | ||
| ROCE | 15.57% | ||
| ROIC | 12.71% | ||
| ROICexc | 14.72% | ||
| ROICexgc | 182.6% | ||
| OM | 23.06% | ||
| PM (TTM) | 17.59% | ||
| GM | 78.73% | ||
| FCFM | 31.01% |
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 | 0.31 | ||
| Debt/FCF | 1.19 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 24.91% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.52% | ||
| Profit Quality | 176.23% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 8.88 |
F-Score6
WACC11.81%
ROIC/WACC1.08
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)11.55%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%1.21%
EPS Next Y15.93%
EPS Next 2Y15.34%
EPS Next 3Y15.17%
EPS Next 5Y16.61%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%10.24%
Revenue Next Year12.94%
Revenue Next 2Y12.63%
Revenue Next 3Y12.53%
Revenue Next 5Y13.64%
EBIT growth 1Y13.46%
EBIT growth 3Y15.51%
EBIT growth 5Y15.75%
EBIT Next Year21.02%
EBIT Next 3Y15.26%
EBIT Next 5YN/A
FCF growth 1Y35.08%
FCF growth 3Y14.03%
FCF growth 5Y16.4%
OCF growth 1Y31.21%
OCF growth 3Y14.54%
OCF growth 5Y16.01%