Intuit Inc.
Intuit Inc. Fundamental Analysis
Intuit Inc. (INTU) shows strong financial fundamentals with a PE ratio of 25.38, profit margin of 21.57%, and ROE of 22.20%. The company generates $20.1B in annual revenue with strong year-over-year growth of 15.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 88.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze INTU's fundamental strength across five key dimensions:
Efficiency Score
ExcellentINTU demonstrates superior asset utilization.
Valuation Score
ModerateINTU shows balanced valuation metrics.
Growth Score
ExcellentINTU delivers strong and consistent growth momentum.
Financial Health Score
ExcellentINTU maintains a strong and stable balance sheet.
Profitability Score
ExcellentINTU achieves industry-leading margins.
Key Financial Metrics
Is INTU Expensive or Cheap?
P/E Ratio
INTU trades at 25.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, INTU's PEG of 0.59 indicates potential undervaluation.
Price to Book
The market values Intuit Inc. at 5.78 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.00 times EBITDA. This signals the market has high growth expectations.
How Well Does INTU Make Money?
Net Profit Margin
For every $100 in sales, Intuit Inc. keeps $21.57 as profit after all expenses.
Operating Margin
Core operations generate 27.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.20 in profit for every $100 of shareholder equity.
ROA
Intuit Inc. generates $12.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Intuit Inc. generates strong operating cash flow of $6.96B, reflecting robust business health.
Free Cash Flow
Intuit Inc. generates strong free cash flow of $6.82B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $24.51 in free cash annually.
FCF Yield
INTU converts 6.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How INTU Stacks Against Its Sector Peers
| Metric | INTU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.38 | 35.31 | Better (Cheaper) |
| ROE | 22.20% | 1063.00% | Weak |
| Net Margin | 21.57% | 5920926810.00% | Weak |
| Debt/Equity | 0.40 | 0.45 | Neutral |
| Current Ratio | 1.32 | 4.97 | Neutral |
| ROA | 12.66% | -296056.00% (disorted) | Strong |
INTU outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Intuit Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
128.59%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
97.51%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
139.68%
Industry Style: Growth, Innovation, High Beta
High Growth