546.19 USD
-15.58 (-2.77%)
Overall INTU gets a fundamental rating of 7 out of 10. We evaluated INTU against 278 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 overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, INTU could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year INTU was profitable.
- In the past year INTU had a positive cash flow from operations.
- In the past 5 years INTU has always been profitable.
- INTU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- INTU has a better Return On Assets (12.41%) than 90.29% of its industry peers.
- The Return On Equity of INTU (21.31%) is better than 88.49% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.53%, INTU belongs to the top of the industry, outperforming 93.17% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for INTU is above the industry average of 10.76%.
- The last Return On Invested Capital (16.53%) for INTU 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
- With an excellent Profit Margin value of 21.19%, INTU belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
- In the last couple of years the Profit Margin of INTU has declined.
- With an excellent Operating Margin value of 26.72%, INTU belongs to the best of the industry, outperforming 90.65% of the companies in the same industry.
- In the last couple of years the Operating Margin of INTU has declined.
- INTU has a better Gross Margin (79.89%) than 80.94% of its industry peers.
- INTU'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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so INTU is still creating some value.
- INTU has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, INTU has more shares outstanding
- INTU has a better debt/assets ratio than last year.
2.2 Solvency
- INTU has an Altman-Z score of 8.80. This indicates that INTU is financially healthy and has little risk of bankruptcy at the moment.
- INTU has a Altman-Z score of 8.80. This is amongst the best in the industry. INTU outperforms 88.49% of its industry peers.
- The Debt to FCF ratio of INTU is 0.97, which is an excellent value as it means it would take INTU, only 0.97 years of fcf income to pay off all of its debts.
- INTU has a Debt to FCF ratio of 0.97. This is in the better half of the industry: INTU outperforms 75.90% of its industry peers.
- INTU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of INTU (0.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 8.8 |
ROIC/WACC1.5
WACC11.04%
2.3 Liquidity
- A Current Ratio of 1.39 indicates that INTU should not have too much problems paying its short term obligations.
- INTU has a Current ratio (1.39) which is in line with its industry peers.
- A Quick Ratio of 1.39 indicates that INTU should not have too much problems paying its short term obligations.
- INTU has a Quick ratio of 1.39. This is comparable to the rest of the industry: INTU outperforms 43.17% 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 | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
- INTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.88%, which is quite impressive.
- INTU 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.
- INTU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.65% yearly.
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
- The Earnings Per Share is expected to grow by 15.50% on average over the next years. This is quite good.
- Based on estimates for the next years, INTU 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.
- 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
- INTU is valuated quite expensively with a Price/Earnings ratio of 25.93.
- Based on the Price/Earnings ratio, INTU is valued a bit cheaper than the industry average as 65.83% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, INTU is valued at the same level.
- A Price/Forward Earnings ratio of 20.21 indicates a rather expensive valuation of INTU.
- Based on the Price/Forward Earnings ratio, INTU is valued a bit cheaper than 71.94% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. INTU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 20.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, INTU is valued a bit cheaper than the industry average as 72.30% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, INTU is valued a bit cheaper than the industry average as 75.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.92 | ||
| EV/EBITDA | 26.39 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- INTU has an outstanding profitability rating, which may justify a higher PE ratio.
- INTU's earnings are expected to grow with 15.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)1.25
EPS Next 2Y15.6%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
- INTU has a yearly dividend return of 0.88%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.54, INTU pays a better dividend. On top of this INTU pays more dividend than 91.37% of the companies listed in the same industry.
- With a Dividend Yield of 0.88, INTU pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
- The dividend of INTU is nicely growing with an annual growth rate of 14.61%!
- 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)14.61%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 29.97% 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.
DP29.97%
EPS Next 2Y15.6%
EPS Next 3Y15.45%
INTUIT INC / INTU FAQ
What is the ChartMill fundamental rating of INTUIT INC (INTU) stock?
ChartMill assigns a fundamental rating of 7 / 10 to INTU.
What is the valuation status for INTU stock?
ChartMill assigns a valuation rating of 5 / 10 to INTUIT INC (INTU). This can be considered as Fairly Valued.
What is the profitability of INTU stock?
INTUIT INC (INTU) has a profitability rating of 8 / 10.
What are the PE and PB ratios of INTUIT INC (INTU) stock?
The Price/Earnings (PE) ratio for INTUIT INC (INTU) is 25.93 and the Price/Book (PB) ratio is 7.87.
What is the earnings growth outlook for INTUIT INC?
The Earnings per Share (EPS) of INTUIT INC (INTU) is expected to grow by 17.05% in the next year.