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Intuit Inc INTU

Morningstar Rating
$574.12 +2.62 (0.46%)
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Company Report

Intuit Earnings: New Tactics Boost Tax Filings and Ecosystem Strength Persists; Shares Overvalued

Intuit reported a solid beat on the top and bottom line in its first quarter of the year as TurboTax filings had higher volumes than expected in the tax extension period and small business platform solutions continued to make headway on Intuit’s path to higher attach rates in its small business software ecosystem. Despite the ideal quarter, full-year guidance was unchanged as some of the upside was a result of experimental tactics Intuit had in place that the firm hopes will continue in increased sales effectiveness, but could prove unrepeatable. Altogether, the upside from the quarter was based on Intuit’s strategic moves, which we continue to be impressed by, as opposed to macroeconomic tailwinds. As a result, while we do see the potential for further beats this year, we are reiterating our $500 fair value estimate for the wide-moat stock until we see Intuit’s new strategies more tested. All in all, we continue to view shares as overvalued.

Price vs Fair Value

INTU is trading at a 14% premium.
Price
$571.50
Fair Value
$185.00
Uncertainty
Medium
1-Star Price
$396.00
5-Star Price
$868.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Intuit’s tax revenue should climb at a healthy rate as the company’s solutions intersect with the assisted tax-filing base.

Bears

Some countries outside of the U.S. automatically generate citizens’ tax files. If the U.S. adopted a similar program, Intuit’s TurboTax business could face material headwinds.

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News

Trading Information

Previous Close Price
$571.50
Day Range
$565.75574.41
52-Week Range
$370.40598.48
Bid/Ask
$573.95 / $574.32
Market Cap
$160.76 Bil
Volume/Avg
447,578 / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
37.52
Price/Sales
10.96
Dividend Yield
0.57%
Dividend Yield (Forward)
0.63%
Total Yield
1.84%

Company Profile

Intuit is a provider of small-business accounting software (QuickBooks), personal tax solutions (TurboTax), and professional tax offerings (Lacerte). Founded in the mid-1980s, Intuit controls the majority of U.S. market share for small-business accounting and DIY tax-filing software.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
18,200

Competitors

Valuation

Metric
INTU
SGE
ADP
Price/Earnings (Normalized)
37.5234.5227.31
Price/Book Value
9.428.3927.27
Price/Sales
10.965.485.47
Price/Cash Flow
35.0532.4318.21
Price/Earnings
INTU
SGE
ADP

Financial Strength

Metric
INTU
SGE
ADP
Quick Ratio
0.660.880.11
Current Ratio
1.250.940.98
Interest Coverage
12.587.1412.85
Quick Ratio
INTU
SGE
ADP

Profitability

Metric
INTU
SGE
ADP
Return on Assets (Normalized)
15.44%8.49%6.71%
Return on Equity (Normalized)
25.72%24.01%107.88%
Return on Invested Capital (Normalized)
18.55%13.48%44.51%
Return on Assets
INTU
SGE
ADP

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