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Intuit Inc. (INTU)
:INTU
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Intuit
(NASDAQ:INTU)79Outperform
Positive Factors
Financial Performance
FQ2 revenue solidly above estimates across all key segments and op. margin and EPS were significantly better than expected.
Growth Opportunities
Early momentum in TurboTax units and ARPR growth, coupled with potential from Credit Karma and GBSG, indicates room for Intuit to raise FY25 guidance.
Negative Factors
Tax Concerns
Concerns about meeting near-term tax guidance could pressure Intuit's stock performance despite long-term growth prospects.
Intuit (INTU) vs. S&P 500 (SPY)
Market Cap
$171.61B
Dividend Yield0.63%
Average Volume (3M)1.98M
Price to Earnings (P/E)57.4
Beta (1Y)1.13
Revenue Growth13.73%
EPS Growth9.93%
CountryUS
Employees18,800
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)10.70
Shares Outstanding279,562,000
10 Day Avg. Volume2,514,476
30 Day Avg. Volume1,980,251
Financial Highlights & Ratios
PEG Ratio5.77
Price to Book (P/B)N/A
Price to Sales (P/S)9.79
Price to Cash Flow (P/CF)39.30
P/FCF Ratio38.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$722.35Price Target Upside20.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
Intuit Business Overview & Revenue Model
Company DescriptionIntuit Inc. is a leading global financial technology company that specializes in software products for individuals, small businesses, and accountants. Operating primarily in the sectors of financial software and services, Intuit's core products include TurboTax, QuickBooks, Mint, and Credit Karma, which provide solutions for tax preparation, accounting, personal finance, and credit score monitoring, respectively. The company aims to empower consumers and businesses by simplifying financial management and ensuring financial stability.
How the Company Makes MoneyIntuit makes money through a diversified revenue model primarily based on the sale of software products and associated services. Key revenue streams include subscriptions and licenses for its flagship products like QuickBooks, a leading accounting software for small and medium-sized businesses, and TurboTax, a top tax preparation software for individuals and accountants. Intuit also generates income through transaction fees and financial services offered via its Mint and Credit Karma platforms, which include credit monitoring and financial advice. Additionally, Intuit benefits from partnerships with financial institutions and third-party developers who integrate their services and applications with Intuit's ecosystem. The company's revenue is further bolstered by its marketing and advertising solutions offered through these platforms, leveraging data analytics to provide targeted marketing opportunities.
Intuit Financial Statement Overview
Summary
Intuit demonstrates a strong financial position with impressive growth in revenue and profitability, a robust balance sheet, and solid cash flow management. The company's high gross and net profit margins reflect operational efficiency. However, the increase in debt levels requires monitoring.Income Statement
Intuit shows impressive growth in revenue and profitability, with a TTM revenue of $16.59 billion, up from $14.37 billion last year. The TTM gross profit margin is high at 78.35%, and the net profit margin is strong at 17.59%. EBIT and EBITDA margins are robust at 21.66% and 25.95%, respectively. The company exhibits consistent growth in revenue and profit margins, reflecting strong operational efficiency and market position.88
Very Positive
Balance Sheet
The balance sheet reveals a healthy equity ratio of 54.61%, indicating a solid capital structure with manageable debt levels. The debt-to-equity ratio is 0.38, reflecting prudent leverage usage. Return on equity is substantial at 16.10%, pointing to effective use of equity capital. While the company maintains a strong balance sheet, the increase in total debt warrants monitoring.80
Positive
Cash Flow
Intuit's cash flow performance is commendable, with a TTM free cash flow of $5.14 billion, a notable increase from $4.63 billion the previous year. The operating cash flow to net income ratio is healthy at 1.83, signifying strong cash generation from operations. The free cash flow to net income ratio is 1.76, indicating efficient conversion of income to cash flow. The consistent growth in free cash flow reflects strong operational cash management.85
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 16.59B | 16.29B | 14.37B | 12.73B | 9.63B | 7.68B | Gross Profit |
| 12.99B | 12.82B | 11.22B | 10.32B | 7.95B | 6.30B | EBIT |
| 3.59B | 3.63B | 3.14B | 2.57B | 2.50B | 2.18B | EBITDA |
| 4.30B | 4.58B | 4.04B | 3.37B | 2.95B | 2.43B | Net Income Common Stockholders |
| 2.92B | 2.96B | 2.38B | 2.07B | 2.06B | 1.83B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.07B | 4.07B | 3.66B | 3.28B | 3.87B | 7.05B | Total Assets |
| 32.13B | 32.13B | 27.78B | 27.73B | 15.52B | 10.93B | Total Debt |
| 6.57B | 6.57B | 6.60B | 7.46B | 2.41B | 3.59B | Net Debt |
| 2.96B | 2.96B | 3.75B | 4.66B | -148.00M | -2.85B | Total Liabilities |
| 13.70B | 13.70B | 10.51B | 11.29B | 5.65B | 5.83B | Stockholders Equity |
| 18.44B | 18.44B | 17.27B | 16.44B | 9.87B | 5.11B |
| Cash Flow | Free Cash Flow | ||||
| 5.14B | 4.63B | 4.79B | 3.66B | 3.13B | 2.28B | Operating Cash Flow |
| 5.34B | 4.88B | 5.05B | 3.89B | 3.25B | 2.41B | Investing Cash Flow |
| -625.00M | -227.00M | -922.00M | -5.42B | -3.96B | -97.00M | Financing Cash Flow |
| -485.00M | -397.00M | -4.27B | 1.73B | -3.18B | 2.03B |
Intuit Technical Analysis
Neutral
598.07
Price Trends
606.36
Negative
623.70
Negative
625.17
Negative
Market Momentum
-1.54
Negative
50.98
Neutral
59.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTU, the sentiment is Neutral. The current price of 598.07 is above the 20-day moving average (MA) of 586.90, below the 50-day MA of 606.36, and below the 200-day MA of 625.17, indicating a neutral trend. The MACD of -1.54 indicates Negative momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 59.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INTU.
Intuit Risk Analysis
Intuit disclosed 34 risk factors in its most recent earnings report. Intuit reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Intuit Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.89T | 31.30 | 30.64% | 0.80% | 15.04% | 12.38% | |
79 Outperform | $171.61B | 57.36 | 16.92% | 0.63% | 13.73% | 9.93% | |
78 Outperform | $193.98B | 35.94 | 39.42% | ― | 11.02% | 4.96% | |
78 Outperform | $12.61B | 24.70 | 31.85% | 0.68% | 11.19% | 51.03% | |
73 Outperform | $274.98B | 45.18 | 10.13% | 0.55% | 8.72% | 51.47% | |
71 Outperform | $186.65B | 132.46 | 14.83% | ― | 22.44% | -18.31% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
INTU
Intuit
598.07
-37.76
-5.94%
ADBE
Adobe
446.03
-98.81
-18.14%
MSFT
Microsoft
388.61
-10.99
-2.75%
CRM
Salesforce
287.34
-9.75
-3.28%
NOW
ServiceNow
906.09
165.94
22.42%
PAYC
Paycom
217.21
44.37
25.67%
Intuit Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 7.64% | Next Earnings Date: May 22, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, highlighting strong financial performance across multiple segments, significant advancements in AI-driven products, and successful expansion into mid-market segments. Although there were minor challenges, such as a slight decline in the ProTax Group and Mailchimp growth hurdles, these were overshadowed by the company's strong revenue growth and strategic achievements.Highlights
Strong Revenue Growth
Intuit reported a 17% revenue growth for Q2 2025, demonstrating strong business performance across its segments.
Record Operating Income
GAAP operating income increased by 61% to $593 million, and non-GAAP operating income rose by 26% to $1.3 billion.
TurboTax Live Full Service Success
TurboTax Live Full Service achieved a Product Recommendation Score of 84, indicating high customer satisfaction and successful AI-driven enhancements.
Credit Karma Revenue Surge
Credit Karma revenue grew by 36%, driven by strength in credit cards, personal loans, and auto insurance.
Expansion in Mid-Market Segment
Intuit's focus on mid-market customers resulted in a 40% growth in Online Ecosystem revenue for QBO Advanced and Intuit Enterprise Suite.
Lowlights
ProTax Group Revenue Decline
ProTax Group revenue decreased by 1% in Q2.
Mailchimp Revenue Growth Challenges
Mailchimp's revenue growth was impacted by lapping of price changes, signifying ongoing challenges in scaling its business.
Company Guidance
During Intuit's second quarter fiscal 2025 conference call, the company provided robust guidance, reiterating its full-year expectations for double-digit revenue growth and expanding margins. Intuit reported a 17% increase in revenue for the quarter, totaling $4 billion, with GAAP operating income surging by 61% to $593 million. Non-GAAP operating income grew 26% to $1.3 billion, while GAAP diluted earnings per share rose 34% to $1.67. The company highlighted the strong performance of its Global Business Solutions Group, which saw a 19% revenue growth, driven by a 21% increase in Online Ecosystem revenue, excluding Mailchimp. Intuit's AI-driven initiatives played a crucial role in enhancing customer experiences and operational efficiencies, contributing nearly $90 million in annualized efficiencies in the first half of the year. Intuit's CEO, Sasan Goodarzi, emphasized the momentum in their AI-driven platform strategy, with significant progress in consumer platforms like TurboTax and Credit Karma, and a strong start in the tax season, expecting Consumer Group revenue growth of 7% to 8% for fiscal 2025. The company maintained its fiscal 2025 guidance, projecting total revenue growth between 12% and 13%, with GAAP and non-GAAP diluted earnings per share expected to grow by 18% to 20% and 13% to 14%, respectively.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.