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Intuit (INTU)
NASDAQ:INTU
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Intuit
(NASDAQ:INTU)
80Outperform
Positive Factors
Consumer Segment Growth
Solid ARPU growth and an elevated level of conservatism in management's guidance suggest potential upside for the company's Consumer segment.
Revenue Growth Drivers
The company has multiple drivers like pricing, partners, and new initiatives to sustain near-term low-teens total revenue growth.
Negative Factors
Promotional Activity Concerns
A competitor suggested promotional activity this year was high, which could impact Intuit’s average revenue per user and operating expenses, fostering some incremental worry.
Softer Web Traffic Trends
Web traffic trends for Intuit showed softer data with user deceleration in QuickBooks Online and TurboTax.
Intuit (INTU) vs. S&P 500 (SPY)
Market Cap
$187.38B
Dividend Yield0.6%
Average Volume (3M)1.72M
Price to Earnings (P/E)62.6
Beta (1Y)0.97
Revenue Growth13.73%
EPS Growth9.93%
CountryUS
Employees18,800
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)3.32
Shares Outstanding279,562,000
10 Day Avg. Volume1,566,443
30 Day Avg. Volume1,715,840
Financial Highlights & Ratios
PEG Ratio14.96
Price to Book (P/B)10.20
Price to Sales (P/S)0.00
P/FCF Ratio32.46
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit13.82
Enterprise Value/Ebitda10.36
Forecast
1Y Price Target
$726.80Price Target Upside8.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
Intuit Business Overview & Revenue Model
Company DescriptionIntuit Inc. is a global technology company that specializes in financial software and services. Headquartered in Mountain View, California, Intuit develops and sells business and financial management solutions for small and mid-sized businesses, consumers, and accounting professionals. Its core products include TurboTax, QuickBooks, Mint, and Credit Karma, which provide tools for tax preparation, accounting, personal finance, and credit monitoring, respectively.
How the Company Makes MoneyIntuit generates revenue primarily through the sale of its software products and services, which are offered via subscription and transaction-based models. The company's key revenue streams include its Small Business & Self-Employed segment, driven by QuickBooks accounting software and related services; the Consumer segment, powered by TurboTax, which offers tax preparation solutions; and the Credit Karma segment, which earns through credit services and financial product recommendations. Intuit also monetizes through its strategic partnerships with financial institutions, leveraging data-driven insights to enhance customer engagement and deliver personalized financial solutions.
Intuit Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows sales performance across different business areas, indicating which segments are thriving and contributing most to growth.
Shows sales performance across different business areas, indicating which segments are thriving and contributing most to growth.
Data provided by:
Main Street Data
Main Street DataIntuit Financial Statement Overview
Summary
Intuit's financial performance is robust, characterized by strong revenue growth, high profitability margins, and efficient cash flow management. The balance sheet remains strong with a balanced capital structure and high return on equity. While the company exhibits solid financial health, monitoring debt levels will be essential to maintain financial stability.Income Statement
Intuit demonstrates strong revenue growth with a Revenue Growth Rate of 5.42% from 2024 to TTM (Trailing-Twelve-Months). The company maintains a robust Gross Profit Margin of 78.91% and a healthy Net Profit Margin of 17.69% in TTM. The EBIT Margin is solid at 22.24%, indicating effective cost management. However, the decline in EBITDA Margin from 28.13% in 2024 to 25.02% in TTM suggests a slight increase in operating expenses.85
Very Positive
Balance Sheet
Intuit has a reasonable Debt-to-Equity Ratio of 0.39 in TTM, reflecting a balanced capital structure. The Return on Equity (ROE) is strong at 16.92% in TTM, indicating efficient use of equity. The Equity Ratio is stable at 56.66%, suggesting a healthy level of equity financing. However, the increase in Total Debt warrants monitoring.82
Very Positive
Cash Flow
The company has shown a remarkable Free Cash Flow Growth Rate of 21.54% from 2024 to TTM. The Operating Cash Flow to Net Income Ratio is 1.91 in TTM, reflecting strong cash generation relative to earnings. Free Cash Flow to Net Income Ratio stands at 1.85, indicating efficient cash management. Continued growth in cash flow reflects solid operational performance.88
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 17.17B | 16.29B | 14.37B | 12.73B | 9.63B | 7.68B | Gross Profit |
| 13.54B | 12.82B | 11.22B | 10.32B | 7.95B | 6.30B | EBIT |
| 3.82B | 3.63B | 3.14B | 2.57B | 2.50B | 2.18B | EBITDA |
| 4.53B | 4.58B | 4.04B | 3.37B | 2.95B | 2.43B | Net Income Common Stockholders |
| 3.04B | 2.96B | 2.38B | 2.07B | 2.06B | 1.83B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.46B | 4.07B | 3.66B | 3.28B | 3.87B | 7.05B | Total Assets |
| 31.68B | 32.13B | 27.78B | 27.73B | 15.52B | 10.93B | Total Debt |
| 6.89B | 6.57B | 6.60B | 7.46B | 2.41B | 3.59B | Net Debt |
| 4.46B | 2.96B | 3.75B | 4.66B | -148.00M | -2.85B | Total Liabilities |
| 13.73B | 13.70B | 10.51B | 11.29B | 5.65B | 5.83B | Stockholders Equity |
| 17.95B | 18.44B | 17.27B | 16.44B | 9.87B | 5.11B |
| Cash Flow | Free Cash Flow | ||||
| 5.63B | 4.63B | 4.79B | 3.66B | 3.13B | 2.28B | Operating Cash Flow |
| 5.80B | 4.88B | 5.05B | 3.89B | 3.25B | 2.41B | Investing Cash Flow |
| -1.15B | -227.00M | -922.00M | -5.42B | -3.96B | -97.00M | Financing Cash Flow |
| -3.73B | -397.00M | -4.27B | 1.73B | -3.18B | 2.03B |
Intuit Technical Analysis
Positive
670.86
Price Trends
610.20
Positive
606.82
Positive
620.73
Positive
Market Momentum
17.99
Negative
68.02
Neutral
88.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTU, the sentiment is Positive. The current price of 670.86 is above the 20-day moving average (MA) of 636.32, above the 50-day MA of 610.20, and above the 200-day MA of 620.73, indicating a bullish trend. The MACD of 17.99 indicates Negative momentum. The RSI at 68.02 is Neutral, neither overbought nor oversold. The STOCH value of 88.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INTU.
Intuit Risk Analysis
Intuit disclosed 34 risk factors in its most recent earnings report. Intuit reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Intuit Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $275.97B | 45.76 | 10.26% | 0.56% | 8.72% | 51.47% | |
80 Outperform | $187.38B | 62.64 | 17.43% | 0.60% | 13.73% | 9.93% | |
79 Outperform | $73.14B | 139.77 | 6.15% | ― | 16.94% | -62.24% | |
75 Outperform | $212.33B | 139.24 | 16.86% | ― | 21.01% | -20.93% | |
71 Outperform | $53.70B | 95.02 | -47.82% | ― | 14.72% | 21.81% | |
70 Outperform | $58.12B | ― | -34.33% | ― | 19.12% | -161.42% | |
60 Neutral | $11.58B | 10.33 | -7.23% | 2.94% | 7.47% | -10.84% |
* Technology Sector Average
Performance Comparison
INTU
Intuit
670.86
7.34
1.11%
FICO
Fair Isaac
2,206.01
831.21
60.46%
CRM
Salesforce
287.63
5.52
1.96%
WDAY
Workday
273.30
14.44
5.58%
NOW
ServiceNow
1,025.75
248.70
32.01%
TEAM
Atlassian
214.47
36.42
20.45%
Intuit Earnings Call Summary
Earnings Call Date:Feb 25, 2025
(Q2-2025)
| % Change Since: 20.95%|
Next Earnings Date:May 22, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, highlighting strong financial performance across multiple segments, significant advancements in AI-driven products, and successful expansion into mid-market segments. Although there were minor challenges, such as a slight decline in the ProTax Group and Mailchimp growth hurdles, these were overshadowed by the company's strong revenue growth and strategic achievements.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Intuit reported a 17% revenue growth for Q2 2025, demonstrating strong business performance across its segments.
Record Operating Income
GAAP operating income increased by 61% to $593 million, and non-GAAP operating income rose by 26% to $1.3 billion.
TurboTax Live Full Service Success
TurboTax Live Full Service achieved a Product Recommendation Score of 84, indicating high customer satisfaction and successful AI-driven enhancements.
Credit Karma Revenue Surge
Credit Karma revenue grew by 36%, driven by strength in credit cards, personal loans, and auto insurance.
Expansion in Mid-Market Segment
Intuit's focus on mid-market customers resulted in a 40% growth in Online Ecosystem revenue for QBO Advanced and Intuit Enterprise Suite.
Negative Updates
ProTax Group Revenue Decline
ProTax Group revenue decreased by 1% in Q2.
Mailchimp Revenue Growth Challenges
Mailchimp's revenue growth was impacted by lapping of price changes, signifying ongoing challenges in scaling its business.
Company Guidance
During Intuit's second quarter fiscal 2025 conference call, the company provided robust guidance, reiterating its full-year expectations for double-digit revenue growth and expanding margins. Intuit reported a 17% increase in revenue for the quarter, totaling $4 billion, with GAAP operating income surging by 61% to $593 million. Non-GAAP operating income grew 26% to $1.3 billion, while GAAP diluted earnings per share rose 34% to $1.67. The company highlighted the strong performance of its Global Business Solutions Group, which saw a 19% revenue growth, driven by a 21% increase in Online Ecosystem revenue, excluding Mailchimp. Intuit's AI-driven initiatives played a crucial role in enhancing customer experiences and operational efficiencies, contributing nearly $90 million in annualized efficiencies in the first half of the year. Intuit's CEO, Sasan Goodarzi, emphasized the momentum in their AI-driven platform strategy, with significant progress in consumer platforms like TurboTax and Credit Karma, and a strong start in the tax season, expecting Consumer Group revenue growth of 7% to 8% for fiscal 2025. The company maintained its fiscal 2025 guidance, projecting total revenue growth between 12% and 13%, with GAAP and non-GAAP diluted earnings per share expected to grow by 18% to 20% and 13% to 14%, respectively.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.