Intuit Inc. Stock Buy Recommendation Reiterated (INTU)
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- INTUIT INC's earnings per share declined by 42.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTUIT INC increased its bottom line by earning $2.52 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($3.34 versus $2.52).
- INTU's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.86 is somewhat weak and could be cause for future problems.
- The gross profit margin for INTUIT INC is currently very high, coming in at 83.80%. Regardless of INTU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, INTU's net profit margin of 7.33% is significantly lower than the industry average.
- INTU, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Software industry and the overall market, INTUIT INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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