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 94 industry peers in the Software industry. While ITU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ITU shows excellent growth, but is valued quite expensive already. With these ratings, ITU could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
ITU had positive earnings in the past year.
ITU had a positive operating cash flow in the past year.
Each year in the past 5 years ITU has been profitable.
In the past 5 years ITU always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.59%, ITU belongs to the best of the industry, outperforming 84.04% of the companies in the same industry.
The Return On Equity of ITU (16.92%) is better than 76.60% of its industry peers.
With an excellent Return On Invested Capital value of 13.50%, ITU belongs to the best of the industry, outperforming 90.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ITU is in line with the industry average of 11.00%.
The 3 year average ROIC (10.72%) for ITU is below the current ROIC(13.50%), indicating increased profibility in the last year.
| 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 80.85% 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 86.17% of the companies in the same industry.
In the last couple of years the Operating Margin of ITU has declined.
Looking at the Gross Margin, with a value of 78.97%, ITU is in the better half of the industry, outperforming 69.15% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ITU is creating some value.
Compared to 1 year ago, ITU has about the same amount of shares outstanding.
ITU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ITU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.34 indicates that ITU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.34, ITU belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
The Debt to FCF ratio of ITU is 1.11, which is an excellent value as it means it would take ITU, only 1.11 years of fcf income to pay off all of its debts.
ITU has a Debt to FCF ratio of 1.11. This is in the better half of the industry: ITU outperforms 78.72% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that ITU is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, ITU perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 9.34 |
ROIC/WACC1.24
WACC10.91%
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.
A Quick Ratio of 1.27 indicates that ITU should not have too much problems paying its short term obligations.
ITU has a Quick ratio (1.27) which is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 20.25% on average over the past years. This is a very strong growth
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 13.28% yearly.
Based on estimates for the next years, ITU will show a quite strong growth in Revenue. The Revenue will grow by 13.32% on average per year.
EPS Next Y16.16%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
EPS Next 5Y13.28%
Revenue Next Year13.39%
Revenue Next 2Y12.82%
Revenue Next 3Y12.58%
Revenue Next 5Y13.32%
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
The Price/Earnings ratio is 34.90, which means the current valuation is very expensive for ITU.
64.89% of the companies in the same industry are more expensive than ITU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.79. ITU is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.28, the valuation of ITU can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITU indicates a somewhat cheap valuation: ITU is cheaper than 62.77% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. ITU is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.9 | ||
| Fwd PE | 27.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ITU.
72.34% 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 | 30.66 | ||
| EV/EBITDA | 36.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ITU does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ITU may justify a higher PE ratio.
A more expensive valuation may be justified as ITU's earnings are expected to grow with 14.95% in the coming years.
PEG (NY)2.16
PEG (5Y)1.72
EPS Next 2Y15.5%
EPS Next 3Y14.95%
5. Dividend
5.1 Amount
ITU has a yearly dividend return of 0.68%, which is pretty low.
ITU's Dividend Yield is a higher than the industry average which is at 2.00.
With a Dividend Yield of 0.68, ITU pays less dividend than the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
ITU pays out 36.68% of its income as dividend. This is a sustainable payout ratio.
The dividend of ITU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.68%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
FRA:ITU (4/25/2025, 7:00:00 PM)
543.8
+6.3 (+1.17%)
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 Cap152.02B
Analysts80
Price Target622.18 (14.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend3.25
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)15.09%
Min EPS beat(2)4.19%
Max EPS beat(2)25.99%
EPS beat(4)4
Avg EPS beat(4)9.84%
Min EPS beat(4)3.41%
Max EPS beat(4)25.99%
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)-9.99%
PT rev (3m)-12.94%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-4.87%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.9 | ||
| Fwd PE | 27.28 | ||
| P/S | 10.06 | ||
| P/FCF | 30.66 | ||
| P/OCF | 29.77 | ||
| P/B | 9.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.3 |
EPS(TTM)15.58
EY2.87%
EPS(NY)19.93
Fwd EY3.67%
FCF(TTM)17.74
FCFY3.26%
OCF(TTM)18.26
OCFY3.36%
SpS54.07
BVpS56.53
TBVpS-4.4
PEG (NY)2.16
PEG (5Y)1.72
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 | 9.34 |
F-Score9
WACC10.91%
ROIC/WACC1.24
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 Y16.16%
EPS Next 2Y15.5%
EPS Next 3Y14.95%
EPS Next 5Y13.28%
Revenue 1Y (TTM)13.73%
Revenue growth 3Y19.13%
Revenue growth 5Y19.14%
Sales Q2Q%17.04%
Revenue Next Year13.39%
Revenue Next 2Y12.82%
Revenue Next 3Y12.58%
Revenue Next 5Y13.32%
EBIT growth 1Y16.8%
EBIT growth 3Y15.51%
EBIT growth 5Y15.75%
EBIT Next Year20.48%
EBIT Next 3Y16.29%
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%