INTUIT INC (INTU)
US4612021034 - Common Stock
We assign a fundamental rating of 7 out of 10 to INTU. INTU was compared to 279 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. 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.
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
With an excellent Return On Assets value of 9.22%, INTU belongs to the best of the industry, outperforming 85.66% of the companies in the same industry.
INTU has a better Return On Equity (16.07%) than 85.66% of its industry peers.
The Return On Invested Capital of INTU (12.76%) is better than 90.68% of its industry peers.
INTU had an Average Return On Invested Capital over the past 3 years of 10.72%. This is in line with the industry average of 11.54%.
The 3 year average ROIC (10.72%) for INTU is below the current ROIC(12.76%), indicating increased profibility in the last year.
| 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
INTU has a Profit Margin of 18.19%. This is amongst the best in the industry. INTU outperforms 86.02% of its industry peers.
In the last couple of years the Profit Margin of INTU has declined.
INTU has a Operating Margin of 23.66%. This is amongst the best in the industry. INTU outperforms 91.76% of its industry peers.
In the last couple of years the Operating Margin of INTU has declined.
Looking at the Gross Margin, with a value of 78.72%, INTU is in the better half of the industry, outperforming 77.06% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), INTU is creating some value.
INTU has about the same amout of 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
An Altman-Z score of 9.71 indicates that INTU is not in any danger for bankruptcy at the moment.
INTU has a Altman-Z score of 9.71. This is in the better half of the industry: INTU outperforms 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.
INTU has a Debt to FCF ratio of 1.30. This is in the better half of the industry: INTU outperforms 71.33% of its industry peers.
INTU has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of INTU (0.30) is worse than 62.37% 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 | 0.3 | ||
| Debt/FCF | 1.3 | ||
| Altman-Z | 9.71 |
ROIC/WACC1.09
WACC11.76%
2.3 Liquidity
INTU has a Current 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.
Looking at the Current ratio, with a value of 1.29, INTU is doing worse than 60.93% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that INTU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.29, INTU is in line with its industry, outperforming 40.50% of the companies in the same industry.
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 | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
INTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.60%, which is quite good.
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.
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)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
The Earnings Per Share is expected to grow by 15.55% 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 14.70% on average per year.
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
INTU is valuated quite expensively with a Price/Earnings ratio of 39.74.
Compared to the rest of the industry, the Price/Earnings ratio of INTU indicates a somewhat cheap valuation: INTU is cheaper than 68.10% 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 28.65.
With a Price/Forward Earnings ratio of 34.18, INTU can be considered very expensive at the moment.
64.52% of the companies in the same industry are more expensive than INTU, based on the Price/Forward Earnings ratio.
INTU's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.74 | ||
| Fwd PE | 34.18 |
4.2 Price Multiples
INTU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. INTU is 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 the industry average as 68.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.79 | ||
| EV/EBITDA | 39.61 |
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 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.45
PEG (5Y)1.96
EPS Next 2Y15.6%
EPS Next 3Y15.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, INTU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.80, INTU pays a better dividend. On top of this INTU pays more dividend than 92.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, INTU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 34.90% of its income as dividend. This is a sustainable payout ratio.
The dividend of INTU is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP34.9%
EPS Next 2Y15.6%
EPS Next 3Y15.33%
INTUIT INC
NASDAQ:INTU (11/21/2024, 11:16:02 AM)
674.35
+23.75 (+3.65%)
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 Cap189.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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 | 39.74 | ||
| Fwd PE | 34.18 | ||
| 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)2.45
PEG (5Y)1.96
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y