INTU : NASDAQ : Technology
$119.02 up 0.26 | 0.22%
Today's Range: 118.61 - 119.38
Avg. Daily Volume: 1749300.0
04/25/17 - 1:59 PM ET

Financial Analysis


INTUIT INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. INTUIT INC has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 22.46% 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 FY17 Q2 FY16
Net Sales ($mil)1016.0923.0
EBITDA ($mil)79.0100.0
EBIT ($mil)22.042.0
Net Income ($mil)13.024.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)637.0334.0
Total Assets ($mil)4373.04349.0
Total Debt ($mil)1150.01245.0
Equity ($mil)785.0641.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin85.3384.62
EBITDA Margin7.7710.83
Operating Margin2.174.55
Sales Turnover1.111.03
Return on Assets22.1511.68
Return on Equity100.7686.11
Debt Q2 FY17 Q2 FY16
Current Ratio0.60.62
Debt/Capital0.590.66
Interest Expense11.09.0
Interest Coverage2.04.67


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)256.0260.47
Div / share0.340.3
EPS0.050.11
Book value / share3.072.46
Institutional Own % n/a n/a
Avg Daily Volume1732482.01201366.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 57.32 for the Software industry and a significant premium compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 38.57 indicates a significant premium versus the S&P 500 average of 2.99 and a significant premium versus the industry average of 8.71. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. The valuation analysis reveals that, INTUIT INC seems to be trading 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 39.03 Peers 57.32   INTU 22.09 Peers 22.45

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.

 

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 23.99 Peers 41.62   INTU 0.91 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.

 

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 38.57 Peers 8.71   INTU 54.59 Peers 44.45

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
INTU 6.24 Peers 6.41   INTU 8.61 Peers 7.81

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 exceeds its peers.

 

 

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