0.70 | 1.21%
INTUIT INC's gross profit margin for the second quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. INTUIT INC has weak liquidity. Currently, the Quick Ratio is 0.86 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 25.59% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Net Sales ($mil) | 968.0 | 999.0 |
| EBITDA ($mil) | 151.0 | 256.0 |
| EBIT ($mil) | 93.0 | 195.0 |
| Net Income ($mil) | 71.0 | 118.0 |
| Balance Sheet | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 678.0 | 959.0 |
| Total Assets ($mil) | 5089.0 | 4962.0 |
| Total Debt ($mil) | 499.0 | 999.0 |
| Equity ($mil) | 2792.0 | 2223.0 |
| Profitability | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Gross Profit Margin | 83.78 | 84.58 |
| EBITDA Margin | 15.59 | 25.62 |
| Operating Margin | 9.61 | 19.52 |
| Sales Turnover | 0.82 | 0.81 |
| Return on Assets | 15.52 | 13.8 |
| Return on Equity | 25.93 | 31.21 |
| Debt | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Current Ratio | 1.2 | 1.06 |
| Debt/Capital | 0.15 | 0.31 |
| Interest Expense | 7.0 | 15.0 |
| Interest Coverage | 13.29 | 13.0 |
| Share Data | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Shares outstanding (mil) | 296.74 | 294.78 |
| Div / share | 0.17 | 0.15 |
| EPS | 0.23 | 0.4 |
| Book value / share | 9.41 | 7.54 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2447226.0 | 1730614.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 27.69 for the Software industry and a premium compared to the S&P 500 average of 19.08. For additional comparison, its price-to-book ratio of 6.36 indicates a significant premium versus the S&P 500 average of 2.44 and a discount versus the industry average of 7.07. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, INTUIT INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INTU 25.25 | Peers 27.69 | INTU 14.65 | Peers 20.11 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. INTU is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. INTU is trading at a significant discount to its peers. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| INTU 16.26 | Peers 24.71 | INTU 0.79 | Peers 0.76 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. INTU is trading at a significant discount to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. INTU trades at a valuation on par to its peers. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| INTU 6.36 | Peers 7.07 | INTU 6.75 | Peers -92.79 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. INTU is trading at a discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. INTU is expected to have an earnings growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| INTU 4.24 | Peers 8.67 | INTU 4.40 | Peers 16.46 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. INTU is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. INTU significantly trails its peers on the basis of sales growth |
|||||||||||||||||||||||
