INTUIT INC (INTU) Stock Fundamental Analysis
NASDAQ:INTU - Nasdaq - US4612021034 - Common Stock - Currency: USD
Taking everything into account, INTU scores 7 out of 10 in our fundamental rating. INTU was compared to 283 industry peers in the Software industry. INTU gets an excellent profitability rating and is at the same time showing great financial health properties. 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
INTU had positive earnings in the past year.
INTU had a positive operating cash flow in the past year.
INTU had positive earnings in each of the past 5 years.
INTU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.59%, INTU belongs to the top of the industry, outperforming 86.55% of the companies in the same industry.
With an excellent Return On Equity value of 16.92%, INTU belongs to the best of the industry, outperforming 85.09% of the companies in the same industry.
INTU has a Return On Invested Capital of 13.50%. This is amongst the best in the industry. INTU outperforms 91.27% 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 11.71%.
The last Return On Invested Capital (13.50%) for INTU is above the 3 year average (10.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 16.92% | ||
| ROIC | 13.5% |
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
INTU has a Profit Margin of 17.69%. This is amongst the best in the industry. INTU outperforms 84.00% of its industry peers.
INTU's Profit Margin has declined in the last couple of years.
The Operating Margin of INTU (23.62%) is better than 90.55% of its industry peers.
In the last couple of years the Operating Margin of INTU has declined.
INTU has a better Gross Margin (78.97%) than 76.73% of its industry peers.
INTU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 17.69% | ||
| GM | 78.97% |
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 below the Cost of Capital (WACC), so INTU is destroying value.
Compared to 1 year ago, INTU has about the same amount of shares outstanding.
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 9.30. This indicates that INTU is financially healthy and has little risk of bankruptcy at the moment.
INTU's Altman-Z score of 9.30 is amongst the best of the industry. INTU outperforms 80.73% of its industry peers.
The Debt to FCF ratio of INTU is 1.11, which is an excellent value as it means it would take INTU, only 1.11 years of fcf income to pay off all of its debts.
INTU's Debt to FCF ratio of 1.11 is fine compared to the rest of the industry. INTU outperforms 69.82% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that INTU is not too dependend on debt financing.
INTU's Debt to Equity ratio of 0.32 is on the low side compared to the rest of the industry. INTU is outperformed by 62.18% 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 | 0.32 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 9.3 |
ROIC/WACC0.98
WACC13.78%
2.3 Liquidity
A Current Ratio of 1.27 indicates that INTU should not have too much problems paying its short term obligations.
The Current ratio of INTU (1.27) is worse than 62.18% of its industry peers.
INTU has a Quick Ratio of 1.27. This is a normal value and indicates that INTU is financially healthy and should not expect problems in meeting its short term obligations.
INTU has a worse Quick ratio (1.27) than 61.09% of its industry peers.
INTU does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
INTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.89%, which is quite good.
Measured over the past years, INTU shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.25% on average per year.
The Revenue has grown by 13.73% in the past year. This is quite good.
The Revenue has been growing by 19.14% on average over the past years. This is quite good.
EPS 1Y (TTM)12.89%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%26.24%
Revenue 1Y (TTM)13.73%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%17.04%
3.2 Future
The Earnings Per Share is expected to grow by 16.61% on average over the next years. This is quite good.
INTU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.64% yearly.
EPS Next Y15.93%
EPS Next 2Y15.34%
EPS Next 3Y15.1%
EPS Next 5Y16.61%
Revenue Next Year12.97%
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
Based on the Price/Earnings ratio of 33.98, the valuation of INTU can be described as expensive.
Based on the Price/Earnings ratio, INTU is valued a bit cheaper than 66.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of INTU to the average of the S&P500 Index (29.75), we can say INTU is valued inline with the index average.
INTU is valuated quite expensively with a Price/Forward Earnings ratio of 26.63.
INTU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. INTU is cheaper than 69.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, INTU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 26.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INTU indicates a somewhat cheap valuation: INTU is cheaper than 73.09% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INTU is valued a bit cheaper than the industry average as 73.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.88 | ||
| EV/EBITDA | 36.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INTU does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of INTU may justify a higher PE ratio.
A more expensive valuation may be justified as INTU's earnings are expected to grow with 15.10% in the coming years.
PEG (NY)2.13
PEG (5Y)1.68
EPS Next 2Y15.34%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, INTU is not a good candidate for dividend investing.
INTU's Dividend Yield is rather good when compared to the industry average which is at 13.06. INTU pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, INTU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
On average, the dividend of INTU grows each year by 13.81%, which is quite nice.
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)13.81%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
INTU pays out 36.68% 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.
DP36.68%
EPS Next 2Y15.34%
EPS Next 3Y15.1%
601.09
-12.75 (-2.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.66%
Inst Owner Change1.77%
Ins Owners0.08%
Ins Owner Change-2.21%
Market Cap168.26B
Analysts80
Price Target741.47 (23.35%)
Short Float %1.27%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend3.69
Dividend Growth(5Y)13.81%
DP36.68%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.08%
Min EPS beat(2)4.19%
Max EPS beat(2)25.97%
EPS beat(4)4
Avg EPS beat(4)9.83%
Min EPS beat(4)3.41%
Max EPS beat(4)25.97%
EPS beat(8)8
Avg EPS beat(8)11.21%
EPS beat(12)11
Avg EPS beat(12)15.11%
EPS beat(16)13
Avg EPS beat(16)14.42%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)1.49%
Max Revenue beat(2)2.53%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-0.63%
Max Revenue beat(4)2.53%
Revenue beat(8)5
Avg Revenue beat(8)0.2%
Revenue beat(12)9
Avg Revenue beat(12)0.6%
Revenue beat(16)11
Avg Revenue beat(16)0.82%
PT rev (1m)-0.09%
PT rev (3m)-0.25%
EPS NQ rev (1m)-4.57%
EPS NQ rev (3m)-4.41%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 26.63 | ||
| P/S | 9.8 | ||
| P/FCF | 29.88 | ||
| P/OCF | 29.01 | ||
| P/B | 9.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.13 |
EPS(TTM)17.69
EY2.94%
EPS(NY)22.58
Fwd EY3.76%
FCF(TTM)20.12
FCFY3.35%
OCF(TTM)20.72
OCFY3.45%
SpS61.33
BVpS64.12
TBVpS-4.99
PEG (NY)2.13
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 16.92% | ||
| ROCE | 16.54% | ||
| ROIC | 13.5% | ||
| ROICexc | 15.01% | ||
| ROICexgc | 122.63% | ||
| OM | 23.62% | ||
| PM (TTM) | 17.69% | ||
| GM | 78.97% | ||
| FCFM | 32.81% |
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-Score9
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 20.72% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 119.32% | ||
| Profit Quality | 185.45% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 9.3 |
F-Score9
WACC13.78%
ROIC/WACC0.98
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)12.89%
EPS 3Y20.66%
EPS 5Y20.25%
EPS Q2Q%26.24%
EPS Next Y15.93%
EPS Next 2Y15.34%
EPS Next 3Y15.1%
EPS Next 5Y16.61%
Revenue 1Y (TTM)13.73%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%17.04%
Revenue Next Year12.97%
Revenue Next 2Y12.63%
Revenue Next 3Y12.52%
Revenue Next 5Y13.64%
EBIT growth 1Y16.8%
EBIT growth 3Y15.51%
EBIT growth 5Y15.75%
EBIT Next Year20.35%
EBIT Next 3Y16.11%
EBIT Next 5YN/A
FCF growth 1Y40.2%
FCF growth 3Y14.03%
FCF growth 5Y16.4%
OCF growth 1Y35.78%
OCF growth 3Y14.54%
OCF growth 5Y16.01%