INTU : NASDAQ : Technology
$138.04 up 2.1 | 1.6%
Today's Range: 135.58 - 137.97
Avg. Daily Volume: 1451500.0
08/22/17 - 3:42 PM ET

Financial Analysis


INTUIT INC's gross profit margin for the third 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 weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 35.97% 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 FY17 Q3 FY16
Net Sales ($mil)2541.02304.0
EBITDA ($mil)1506.01347.0
EBIT ($mil)1444.01285.0
Net Income ($mil)964.01026.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)1593.01613.0
Total Assets ($mil)4969.04940.0
Total Debt ($mil)500.01000.0
Equity ($mil)1697.01248.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin93.0793.19
EBITDA Margin59.2658.46
Operating Margin56.8355.77
Sales Turnover1.020.94
Return on Assets18.2520.91
Return on Equity53.4459.61
Debt Q3 FY17 Q3 FY16
Current Ratio0.90.81
Debt/Capital0.230.44
Interest Expense8.010.0
Interest Coverage180.5128.5


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)256.25256.39
Div / share0.340.3
EPS3.73.26
Book value / share6.624.87
Institutional Own % n/a n/a
Avg Daily Volume1470925.01895517.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 59.76 for the Software industry and a significant premium compared to the S&P 500 average of 24.23. For additional comparison, its price-to-book ratio of 20.30 indicates a significant premium versus the S&P 500 average of 3.02 and a significant premium versus the industry average of 8.60. 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 38.75 Peers 59.76   INTU 21.93 Peers 37.05

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 significant 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 26.92 Peers 34.04   INTU 0.87 Peers 1.12

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.

 

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
INTU 20.30 Peers 8.60   INTU 20.06 Peers 89.33

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
INTU 6.77 Peers 6.93   INTU 9.77 Peers 12.04

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 trails its peers on the basis of sales growth

 

 

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