INTUIT INC's gross profit margin for the second 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 0.41 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 72.76% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||923.0||749.0|
|Net Income ($mil)||24.0||-66.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||334.0||1367.0|
|Total Assets ($mil)||4349.0||5245.0|
|Total Debt ($mil)||1245.0||499.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||84.62||82.11|
|Return on Assets||11.68||15.34|
|Return on Equity||86.11||34.57|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||260.47||280.94|
|Div / share||0.3||0.25|
|Book value / share||2.46||8.38|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1616501.0||1905693.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 49.40 for the Software industry and a significant premium compared to the S&P 500 average of 23.99. For additional comparison, its price-to-book ratio of 41.19 indicates a significant premium versus the S&P 500 average of 2.74 and a significant premium versus the industry average of 7.13. The current price-to-sales ratio is well above the S&P 500 average and above 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.
|INTU 51.72||Peers 49.40||INTU 20.46||Peers 23.15|
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 discount to its peers.
|INTU 23.55||Peers 89.20||INTU 0.37||Peers 0.69|
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.
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.
|INTU 41.19||Peers 7.13||INTU -30.00||Peers -17.10|
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.
|INTU 5.91||Peers 5.49||INTU 0.08||Peers 5.56|
Average. 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 valuation on par with 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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