INTUIT INC (INTU)
US4612021034 - Common Stock
Taking everything into account, INTU scores 7 out of 10 in our fundamental rating. INTU was compared to 279 industry peers in the Software industry. INTU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. INTU is not overvalued while it is showing excellent growth. This is an interesting combination. This makes INTU very considerable 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.
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 Return On Assets of 9.22%. This is amongst the best in the industry. INTU outperforms 86.02% of its industry peers.
INTU has a better Return On Equity (16.07%) than 86.02% of its industry peers.
INTU's Return On Invested Capital of 12.76% is amongst the best of the industry. INTU outperforms 90.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INTU is in line with the industry average of 11.28%.
The last Return On Invested Capital (12.76%) for INTU is above the 3 year average (10.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.22% | ||
| ROE | 16.07% | ||
| ROIC | 12.76% |
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
With an excellent Profit Margin value of 18.19%, INTU belongs to the best of the industry, outperforming 86.02% of the companies in the same industry.
INTU's Profit Margin has declined in the last couple of years.
INTU's Operating Margin of 23.66% is amongst the best of the industry. INTU outperforms 91.76% of its industry peers.
INTU's Operating Margin has declined in the last couple of years.
INTU has a Gross Margin of 78.72%. This is in the better half 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 | 23.66% | ||
| PM (TTM) | 18.19% | ||
| GM | 78.72% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so INTU is still creating some value.
The number of shares outstanding for INTU remains at a similar level compared to 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
INTU has an Altman-Z score of 10.13. This indicates that INTU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of INTU (10.13) is better than 79.93% of its industry peers.
The Debt to FCF ratio of INTU is 1.30, which is an excellent value as it means it would take INTU, only 1.30 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of INTU (1.30) is better than 72.04% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that INTU is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, INTU is not doing good in the industry: 62.37% of the companies in the same industry are doing better.
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 | 0.3 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 10.13 |
ROIC/WACC1.19
WACC10.72%
2.3 Liquidity
A Current Ratio of 1.29 indicates that INTU should not have too much problems paying its short term obligations.
INTU's Current ratio of 1.29 is on the low side compared to the rest of the industry. INTU is outperformed by 60.93% of its industry peers.
INTU has a Quick Ratio of 1.29. 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 1.29 is in line compared to the rest of the industry. INTU outperforms 40.14% 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 | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.60% 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.
Looking at the last year, INTU shows a quite strong growth in Revenue. The Revenue has grown by 13.34% in the last year.
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)17.6%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%20.61%
Revenue 1Y (TTM)13.34%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%17.4%
3.2 Future
Based on estimates for the next years, INTU will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.55% on average per year.
INTU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.70% yearly.
EPS Next Y16.24%
EPS Next 2Y15.6%
EPS Next 3Y15.33%
EPS Next 5Y15.55%
Revenue Next Year12.84%
Revenue Next 2Y12.57%
Revenue Next 3Y12.39%
Revenue Next 5Y14.7%
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
A Price/Earnings ratio of 41.09 indicates a quite expensive valuation of INTU.
Compared to the rest of the industry, the Price/Earnings ratio of INTU indicates a somewhat cheap valuation: INTU is cheaper than 66.67% of the companies listed in the same industry.
INTU's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.38.
With a Price/Forward Earnings ratio of 35.35, INTU can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, INTU is valued a bit cheaper than the industry average as 63.80% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.98. INTU is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.09 | ||
| Fwd PE | 35.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INTU is valued a bit cheaper than 69.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INTU is valued a bit cheaper than 67.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.18 | ||
| EV/EBITDA | 41.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of INTU may justify a higher PE ratio.
INTU's earnings are expected to grow with 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.53
PEG (5Y)2.03
EPS Next 2Y15.6%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, INTU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.46, INTU pays a better dividend. On top of this INTU pays more dividend than 92.11% of the companies listed in the same industry.
With a Dividend Yield of 0.62, INTU pays less dividend than the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
On average, the dividend of INTU grows each year by 13.84%, which is quite nice.
INTU has paid a dividend for at least 10 years, which is 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
34.90% 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.
DP34.9%
EPS Next 2Y15.6%
EPS Next 3Y15.33%
INTUIT INC
NASDAQ:INTU (11/11/2024, 8:00:01 PM)
After market: 697.35 0 (0%)697.35
+13.13 (+1.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap195.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.09 | ||
| Fwd PE | 35.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.53
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.22% | ||
| ROE | 16.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.66% | ||
| PM (TTM) | 18.19% | ||
| GM | 78.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.6%
EPS 3Y20.66%
EPS 5Y
EPS Q2Q%
EPS Next Y16.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.34%
Revenue growth 3Y19.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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