INTU : NASDAQ : Technology
$116.98 | %
Today's Range: 116.67 - 117.64
Avg. Daily Volume: 1421700.0
12/09/16 - 4:00 PM ET

Financial Analysis


INTUIT INC's gross profit margin for the first quarter of its fiscal year 2017 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 0.36 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 10.94% 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 FY17 Q1 FY16
Net Sales ($mil)778.0713.0
EBITDA ($mil)-6.026.0
EBIT ($mil)-61.0-29.0
Net Income ($mil)-30.0-31.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)605.0474.0
Total Assets ($mil)3933.03833.0
Total Debt ($mil)1100.0850.0
Equity ($mil)936.01051.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin83.4284.15
EBITDA Margin-0.773.64
Operating Margin-7.84-4.07
Sales Turnover1.211.12
Return on Assets24.9110.9
Return on Equity86.2144.05
Debt Q1 FY17 Q1 FY16
Current Ratio0.580.76
Debt/Capital0.540.45
Interest Expense9.07.0
Interest Coverage-6.78-4.14


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)257.07264.35
Div / share0.340.3
EPS-0.12-0.11
Book value / share3.643.98
Institutional Own % n/a n/a
Avg Daily Volume1451975.01460459.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 48.70 for the Software industry and a significant premium compared to the S&P 500 average of 25.37. For additional comparison, its price-to-book ratio of 31.55 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 7.65. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
INTU 37.18 Peers 48.70   INTU 21.35 Peers 22.15

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

INTU is trading at a discount 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 23.35 Peers 27.77   INTU 0.86 Peers 0.78

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
INTU 31.55 Peers 7.65   INTU 88.41 Peers 25.33

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.

 

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 6.21 Peers 5.58   INTU 10.85 Peers 4.80

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

INTU has a sales growth rate that significantly exceeds its peers.

 

 

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