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Intuit Inc
INTU : NASDAQ : Technology
$89.35 -2.40 | -2.70%
Today's Range: 88.88 - 91.00
Avg. Daily Volume: 1,962,000
02/08/16 - 3:05 PM ET

Financial Analysis


INTUIT INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. INTUIT INC has very weak liquidity. Currently, the Quick Ratio is 0.37 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 64.09% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)713.0612.0
EBITDA ($mil)26.0-55.0
EBIT ($mil)-29.0-109.0
Net Income ($mil)-31.0-84.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)474.01589.0
Total Assets ($mil)3833.05038.0
Total Debt ($mil)850.0499.0
Equity ($mil)1051.02927.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin84.1582.35
EBITDA Margin3.64-8.98
Operating Margin-4.07-17.81
Sales Turnover1.120.89
Return on Assets10.916.55
Return on Equity44.0528.59
Debt Q1 FY16 Q1 FY15
Current Ratio0.761.79
Debt/Capital0.450.15
Interest Expense7.07.0
Interest Coverage-4.14-15.57


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)264.35285.42
Div / share0.30.25
EPS-0.11-0.28
Book value / share3.9810.26
Institutional Own % n/a n/a
Avg Daily Volume1932156.02363666.0

Valuation


BUY. INTUIT INC's P/E ratio indicates a significant premium compared to an average of 41.32 for the Software industry and a significant premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 24.33 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 5.92. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, INTUIT INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
INTU 58.99 Peers 41.32   INTU 19.03 Peers 18.94

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

INTU is trading at a significant premium to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
INTU 22.50 Peers 29.69   INTU 0.42 Peers 0.73

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

INTU is trading at a valuation on par with its peers.

 

Discount. 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
INTU 24.33 Peers 5.92   INTU -43.06 Peers -14.04

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

INTU is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, INTU is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
INTU 5.96 Peers 5.24   INTU -4.52 Peers 6.89

Premium. 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 premium 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

 

 

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