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Intuit Inc.
INTU : NASDAQ : Technology

$58.59 0.70 | 1.21%
Today's Range: 58.05 - 60.95
Avg. Daily Volume: 2,500,300
05/22/13 - 4:00 PM ET

Financial Analysis


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 ($mil)968.0999.0
EBITDA ($mil)151.0256.0
EBIT ($mil)93.0195.0
Net Income ($mil)71.0118.0


Balance Sheet Q2 FY13 Q2 FY12
Cash & Equiv. ($mil)678.0959.0
Total Assets ($mil)5089.04962.0
Total Debt ($mil)499.0999.0
Equity ($mil)2792.02223.0


Profitability Q2 FY13 Q2 FY12
Gross Profit Margin83.7884.58
EBITDA Margin15.5925.62
Operating Margin9.6119.52
Sales Turnover0.820.81
Return on Assets15.5213.8
Return on Equity25.9331.21
Debt Q2 FY13 Q2 FY12
Current Ratio1.21.06
Debt/Capital0.150.31
Interest Expense7.015.0
Interest Coverage13.2913.0


Share Data Q2 FY13 Q2 FY12
Shares outstanding (mil)296.74294.78
Div / share0.170.15
EPS0.230.4
Book value / share9.417.54
Institutional Own % n/a n/a
Avg Daily Volume2447226.01730614.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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

 

 

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