INTUIT INC (INTU) Stock Fundamental Analysis
NASDAQ:INTU - Nasdaq - US4612021034 - Common Stock - Currency: USD
Overall INTU gets a fundamental rating of 7 out of 10. We evaluated INTU against 286 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 growing strongly while it is still valued neutral. This is a good combination! This makes INTU very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year INTU was profitable.
INTU had a positive operating cash flow in the past year.
Each year in the past 5 years INTU has been profitable.
Each year in the past 5 years INTU had a positive operating cash flow.
1.2 Ratios
INTU has a better Return On Assets (8.79%) than 85.30% of its industry peers.
INTU has a better Return On Equity (16.10%) than 85.30% of its industry peers.
With an excellent Return On Invested Capital value of 12.71%, INTU belongs to the best of the industry, outperforming 89.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for INTU is in line with the industry average of 12.10%.
The 3 year average ROIC (10.72%) for INTU is below the current ROIC(12.71%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 17.59%, INTU belongs to the top of the industry, outperforming 84.59% of the companies in the same industry.
INTU's Profit Margin has declined in the last couple of years.
The Operating Margin of INTU (23.06%) is better than 91.04% of its industry peers.
INTU's Operating Margin has declined in the last couple of years.
INTU has a better Gross Margin (78.73%) than 75.63% 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
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.
INTU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, INTU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.37 indicates that INTU is not in any danger for bankruptcy at the moment.
INTU has a better Altman-Z score (8.37) than 76.34% 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.
Looking at the Debt to FCF ratio, with a value of 1.19, INTU is in the better half of the industry, outperforming 70.25% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that INTU is not too dependend on debt financing.
INTU has a worse Debt to Equity ratio (0.31) than 61.65% of its industry peers.
Even though the debt/equity ratio score it not favorable for INTU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 8.37 |
ROIC/WACC1.16
WACC10.91%
2.3 Liquidity
A Current Ratio of 1.24 indicates that INTU should not have too much problems paying its short term obligations.
The Current ratio of INTU (1.24) is worse than 63.44% of its industry peers.
INTU has a Quick Ratio of 1.24. This is a normal value and indicates that INTU is financially healthy and should not expect problems in meeting its short term obligations.
INTU's Quick ratio of 1.24 is on the low side compared to the rest of the industry. INTU is outperformed by 63.08% 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%.
Measured over the past years, INTU shows a quite strong growth in Revenue. The Revenue has been growing by 19.14% on average per year.
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
The Earnings Per Share is expected to grow by 16.61% 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 13.64% on average per year.
EPS Next Y15.93%
EPS Next 2Y15.34%
EPS Next 3Y15.17%
EPS Next 5Y16.61%
Revenue Next Year12.96%
Revenue Next 2Y12.63%
Revenue Next 3Y12.52%
Revenue Next 5Y13.64%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
The Price/Earnings ratio is 34.88, 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 69.89% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of INTU to the average of the S&P500 Index (28.28), we can say INTU is valued slightly more expensively.
A Price/Forward Earnings ratio of 26.26 indicates a quite expensive valuation of INTU.
INTU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. INTU is cheaper than 74.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, INTU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.88 | ||
| Fwd PE | 26.26 |
4.2 Price Multiples
INTU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. INTU is cheaper than 72.76% of the companies in the same industry.
75.63% 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 | 32.27 | ||
| EV/EBITDA | 36.85 |
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.
INTU's earnings are expected to grow with 15.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.19
PEG (5Y)1.72
EPS Next 2Y15.34%
EPS Next 3Y15.17%
5. Dividend
5.1 Amount
INTU has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 12.40, INTU pays a better dividend. On top of this INTU pays more dividend than 91.04% of the companies listed in the same industry.
With a Dividend Yield of 0.70, INTU pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
On average, the dividend of INTU grows each year by 13.84%, which is quite nice.
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 (1/29/2025, 8:00:02 PM)
After market: 592.99 0 (0%)592.99
-7.67 (-1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.67%
Inst Owner Change-0.07%
Ins Owners0.09%
Ins Owner Change0.89%
Market Cap165.99B
Analysts80.54
Price Target743.63 (25.4%)
Short Float %1.49%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend3.69
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)0.26%
PT rev (3m)0.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.88 | ||
| Fwd PE | 26.26 | ||
| P/S | 10.01 | ||
| P/FCF | 32.27 | ||
| P/OCF | 31.07 | ||
| P/B | 9.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.85 |
EPS(TTM)17
EY2.87%
EPS(NY)22.58
Fwd EY3.81%
FCF(TTM)18.38
FCFY3.1%
OCF(TTM)19.09
OCFY3.22%
SpS59.27
BVpS64.79
TBVpS-4.89
PEG (NY)2.19
PEG (5Y)1.72
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 | 8.37 |
F-Score6
WACC10.91%
ROIC/WACC1.16
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 Year12.96%
Revenue Next 2Y12.63%
Revenue Next 3Y12.52%
Revenue Next 5Y13.64%
EBIT growth 1Y13.46%
EBIT growth 3Y15.51%
EBIT growth 5Y15.75%
EBIT Next Year20.35%
EBIT Next 3Y16.11%
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%