563.965 USD
+16.27 (+2.97%)
563.312 USD
-0.65 (-0.12%)
We assign a fundamental rating of 7 out of 10 to INTU. INTU was compared to 277 industry peers in the Software industry. Both the health and profitability get an excellent rating, making INTU a very profitable company, without any liquidiy or solvency issues. INTU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
- INTU had positive earnings in each of the past 5 years.
- In the past 5 years INTU always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of INTU (12.41%) is better than 90.25% of its industry peers.
- The Return On Equity of INTU (21.31%) is better than 88.45% 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 93.14% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for INTU is above the industry average of 10.78%.
- The 3 year average ROIC (12.89%) for INTU is below the current ROIC(16.53%), indicating increased profibility in the last year.
| 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
- The Profit Margin of INTU (21.19%) is better than 85.20% of its industry peers.
- INTU's Profit Margin has declined in the last couple of years.
- INTU has a better Operating Margin (26.72%) than 90.61% of its industry peers.
- INTU's Operating Margin has declined in the last couple of years.
- INTU's Gross Margin of 79.89% is amongst the best of the industry. INTU outperforms 80.87% 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.
- The number of shares outstanding for INTU has been increased compared to 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 8.63. This indicates that INTU is financially healthy and has little risk of bankruptcy at the moment.
- INTU has a better Altman-Z score (8.63) than 87.36% 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 better Debt to FCF ratio (0.97) than 75.81% of its industry peers.
- A Debt/Equity ratio of 0.28 indicates that INTU is not too dependend on debt financing.
- INTU has a Debt to Equity ratio (0.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 8.63 |
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.
- The Current ratio of INTU (1.39) is comparable to the rest of the industry.
- INTU has a Quick Ratio of 1.39. 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 1.39 is in line compared to the rest of the industry. INTU outperforms 42.96% 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.
- The Earnings Per Share has been growing by 20.77% on average over the past years. This is a very strong growth
- INTU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.14%.
- The Revenue has been growing by 19.65% on average over the past years. This is quite good.
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.
- INTU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.57% yearly.
EPS Next Y17.03%
EPS Next 2Y15.57%
EPS Next 3Y15.41%
EPS Next 5Y15.5%
Revenue Next Year13.17%
Revenue Next 2Y12.83%
Revenue Next 3Y12.87%
Revenue Next 5Y12.57%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- Based on the Price/Earnings ratio of 26.78, the valuation of INTU can be described as expensive.
- INTU's Price/Earnings ratio is a bit cheaper when compared to the industry. INTU is cheaper than 66.79% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. INTU is around the same levels.
- The Price/Forward Earnings ratio is 20.88, which indicates a rather expensive current valuation of INTU.
- Based on the Price/Forward Earnings ratio, INTU is valued a bit cheaper than the industry average as 71.84% of the companies are valued more expensively.
- INTU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.78 | ||
| Fwd PE | 20.88 |
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 72.20% of the companies listed in the same industry.
- 74.73% 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 | 24.7 | ||
| EV/EBITDA | 25.74 |
4.3 Compensation for Growth
- INTU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 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 15.41% in the coming years.
PEG (NY)1.57
PEG (5Y)1.29
EPS Next 2Y15.57%
EPS Next 3Y15.41%
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 0.52, INTU pays a better dividend. On top of this INTU pays more dividend than 90.97% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, INTU's dividend is way lower than the S&P500 average.
| 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
- INTU pays out 29.97% 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.
DP29.97%
EPS Next 2Y15.57%
EPS Next 3Y15.41%
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 26.78 and the Price/Book (PB) ratio is 8.12.
What is the earnings growth outlook for INTUIT INC?
The Earnings per Share (EPS) of INTUIT INC (INTU) is expected to grow by 17.03% in the next year.