INTUIT INC (ITU.DE) Stock Fundamental Analysis
FRA:ITU - Deutsche Boerse Ag - US4612021034 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to ITU. ITU was compared to 101 industry peers in the Software industry. ITU has an excellent profitability rating, but there are some minor concerns on its financial health. ITU is growing strongly while it is still valued neutral. This is a good combination! This makes ITU very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year ITU was profitable.
In the past year ITU had a positive cash flow from operations.
In the past 5 years ITU has always been profitable.
Each year in the past 5 years ITU had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ITU (9.59%) is better than 84.85% of its industry peers.
With a decent Return On Equity value of 16.92%, ITU is doing good in the industry, outperforming 76.77% of the companies in the same industry.
ITU has a Return On Invested Capital of 13.50%. This is amongst the best in the industry. ITU outperforms 87.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITU is in line with the industry average of 11.53%.
The last Return On Invested Capital (13.50%) for ITU 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
The Profit Margin of ITU (17.69%) is better than 78.79% of its industry peers.
In the last couple of years the Profit Margin of ITU has declined.
Looking at the Operating Margin, with a value of 23.62%, ITU belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
ITU's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 78.97%, ITU is doing good in the industry, outperforming 68.69% of the companies in the same industry.
ITU'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 ITU is destroying value.
The number of shares outstanding for ITU remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ITU has more shares outstanding
ITU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.08 indicates that ITU is not in any danger for bankruptcy at the moment.
The Altman-Z score of ITU (9.08) is better than 87.88% of its industry peers.
ITU has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
ITU has a better Debt to FCF ratio (1.11) than 80.81% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that ITU is not too dependend on debt financing.
ITU's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. ITU outperforms 46.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 9.08 |
ROIC/WACC0.98
WACC13.82%
2.3 Liquidity
ITU has a Current Ratio of 1.27. This is a normal value and indicates that ITU is financially healthy and should not expect problems in meeting its short term obligations.
ITU has a Current ratio (1.27) which is comparable to the rest of the industry.
ITU has a Quick Ratio of 1.27. This is a normal value and indicates that ITU is financially healthy and should not expect problems in meeting its short term obligations.
ITU's Quick ratio of 1.27 is in line compared to the rest of the industry. ITU outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.89% over the past year.
Measured over the past years, ITU shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.25% on average per year.
Looking at the last year, ITU shows a quite strong growth in Revenue. The Revenue has grown by 13.73% in the last year.
Measured over the past years, ITU shows a quite strong growth in Revenue. The Revenue has been growing by 19.14% on average per year.
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
ITU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.61% yearly.
The Revenue is expected to grow by 13.64% on average over the next years. This is quite good.
EPS Next Y15.93%
EPS Next 2Y15.34%
EPS Next 3Y15.1%
EPS Next 5Y16.61%
Revenue Next Year13.39%
Revenue Next 2Y12.83%
Revenue Next 3Y12.6%
Revenue Next 5Y13.64%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 34.23 indicates a quite expensive valuation of ITU.
Based on the Price/Earnings ratio, ITU is valued a bit cheaper than 68.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. ITU is around the same levels.
The Price/Forward Earnings ratio is 26.82, which means the current valuation is very expensive for ITU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITU indicates a somewhat cheap valuation: ITU is cheaper than 63.64% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ITU is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 26.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ITU is on the same level as its industry peers.
75.76% of the companies in the same industry are more expensive than ITU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.05 | ||
| EV/EBITDA | 35.11 |
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 decent profitability rating of ITU may justify a higher PE ratio.
ITU's earnings are expected to grow with 15.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)1.69
EPS Next 2Y15.34%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, ITU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.92, ITU pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.69, ITU pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of ITU is nicely growing with an annual growth rate of 13.81%!
Dividend Growth(5Y)13.81%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
36.68% of the earnings are spent on dividend by ITU. This is a low number and sustainable payout ratio.
ITU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.68%
EPS Next 2Y15.34%
EPS Next 3Y15.1%
FRA:ITU (2/14/2025, 4:52:55 PM)
557.6
-10.5 (-1.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners87.66%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap155.88B
Analysts80
Price Target691.25 (23.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend3.4
Dividend Growth(5Y)13.81%
DP36.68%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)-2.46%
PT rev (3m)-1.82%
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)0.38%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.23 | ||
| Fwd PE | 26.82 | ||
| P/S | 9.86 | ||
| P/FCF | 30.05 | ||
| P/OCF | 29.18 | ||
| P/B | 9.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.11 |
EPS(TTM)16.29
EY2.92%
EPS(NY)20.79
Fwd EY3.73%
FCF(TTM)18.56
FCFY3.33%
OCF(TTM)19.11
OCFY3.43%
SpS56.56
BVpS59.14
TBVpS-4.6
PEG (NY)2.15
PEG (5Y)1.69
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 | 9.08 |
F-Score9
WACC13.82%
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 Year13.39%
Revenue Next 2Y12.83%
Revenue Next 3Y12.6%
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%