INTU : NASDAQ : Technology
$110.99 | %
Today's Range: 110.39 - 112.22
Avg. Daily Volume: 1,443,700
07/29/16 - 4:00 PM ET

Financial Analysis


INTUIT INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. INTUIT INC has weak liquidity. Currently, the Quick Ratio is 0.64 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 46.23% 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.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)2304.02135.0
EBITDA ($mil)1347.01210.0
EBIT ($mil)1285.01151.0
Net Income ($mil)1026.0501.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1613.02084.0
Total Assets ($mil)4940.05295.0
Total Debt ($mil)1000.0499.0
Equity ($mil)1248.02321.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin93.1993.16
EBITDA Margin58.4656.67
Operating Margin55.7753.91
Sales Turnover0.940.8
Return on Assets20.916.08
Return on Equity59.6120.93
Debt Q3 FY16 Q3 FY15
Current Ratio0.811.35
Debt/Capital0.440.18
Interest Expense10.07.0
Interest Coverage128.5164.43


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)256.39275.66
Div / share0.30.25
EPS3.262.33
Book value / share4.878.42
Institutional Own % n/a n/a
Avg Daily Volume1451126.01617405.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 58.30 for the Software industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 23.25 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 6.93. The current price-to-sales ratio is well above the S&P 500 average and above 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 39.17 Peers 58.30   INTU 19.37 Peers 21.62

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

INTU is trading at a significant discount to 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
INTU 26.20 Peers 47.03   INTU 0.26 Peers 0.84

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
INTU 23.25 Peers 6.93   INTU 66.09 Peers -2.42

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 6.26 Peers 5.86   INTU 10.11 Peers 5.32

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.

 

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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