Intuit Inc.

INTU

Services-Prepackaged Software

Mkt Cap

$168.1B

PE

54.71

Debt

$6B

Cash

$6.481B

EV

$167.6B

FCF

$5.111B

Market Cap

$168.1B

P/E Ratio

54.71

Debt

$6B

Cash

$6.481B

EV

$167.6B

FCF

$5.111B

Charts data: {"Earnings":[{"time":"2014-07-30","value":907000000},{"time":"2015-07-30","value":365000000},{"time":"2016-07-30","value":979000000},{"time":"2017-07-30","value":971000000},{"time":"2018-07-30","value":1211000000},{"time":"2019-07-30","value":1557000000},{"time":"2020-07-30","value":1826000000},{"time":"2021-07-30","value":2062000000},{"time":"2022-07-30","value":2066000000},{"time":"2023-07-30","value":2384000000}],"Sales":[{"time":"2014-07-30","value":4506000000},{"time":"2015-07-30","value":4192000000},{"time":"2016-07-30","value":4694000000},{"time":"2017-07-30","value":5177000000},{"time":"2018-07-30","value":5964000000},{"time":"2019-07-30","value":6784000000},{"time":"2020-07-30","value":7679000000},{"time":"2021-07-30","value":9633000000},{"time":"2022-07-30","value":12726000000},{"time":"2023-07-30","value":14368000000}],"Net Margins":[{"time":"2014-07-30","value":0.20128717265867732},{"time":"2015-07-30","value":0.0870706106870229},{"time":"2016-07-30","value":0.2085641244141457},{"time":"2017-07-30","value":0.1875603631446784},{"time":"2018-07-30","value":0.20305164319248825},{"time":"2019-07-30","value":0.22951061320754718},{"time":"2020-07-30","value":0.23779137908581846},{"time":"2021-07-30","value":0.21405584968338004},{"time":"2022-07-30","value":0.16234480590916234},{"time":"2023-07-30","value":0.16592427616926503}],"Assets":[{"time":"2014-07-30","value":5201000000},{"time":"2015-07-30","value":4968000000},{"time":"2016-07-30","value":4250000000},{"time":"2017-07-30","value":4068000000},{"time":"2018-07-30","value":5178000000},{"time":"2019-07-30","value":6283000000},{"time":"2020-07-30","value":10931000000},{"time":"2021-07-30","value":15516000000},{"time":"2022-07-30","value":27734000000},{"time":"2023-07-30","value":27780000000}],"Stockholders Equity":[{"time":"2014-07-30","value":3078000000},{"time":"2015-07-30","value":2332000000},{"time":"2016-07-30","value":1161000000},{"time":"2017-07-30","value":1354000000},{"time":"2018-07-30","value":2354000000},{"time":"2019-07-30","value":3749000000},{"time":"2020-07-30","value":5106000000},{"time":"2021-07-30","value":9869000000},{"time":"2022-07-30","value":16441000000},{"time":"2023-07-30","value":17269000000}],"ROE":[{"time":"2014-07-30","value":0.29467186484730346},{"time":"2015-07-30","value":0.1565180102915952},{"time":"2016-07-30","value":0.843238587424634},{"time":"2017-07-30","value":0.7171344165435746},{"time":"2018-07-30","value":0.5144435004248088},{"time":"2019-07-30","value":0.41531074953320885},{"time":"2020-07-30","value":0.3576184880532707},{"time":"2021-07-30","value":0.20893707569155942},{"time":"2022-07-30","value":0.12566145611580803},{"time":"2023-07-30","value":0.13805084255023453}],"ROA":[{"time":"2014-07-30","value":0.2586041145933474},{"time":"2015-07-30","value":0.14875201288244766},{"time":"2016-07-30","value":0.29223529411764704},{"time":"2017-07-30","value":0.34365781710914456},{"time":"2018-07-30","value":0.30243337195828507},{"time":"2019-07-30","value":0.3017666719719879},{"time":"2020-07-30","value":0.20236025981154515},{"time":"2021-07-30","value":0.1666022170662542},{"time":"2022-07-30","value":0.09270209850724742},{"time":"2023-07-30","value":0.11306695464362851}]}

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect. The Small Business & Self-Employed segment provides QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; QuickBooks Self-Employed solution; QuickBooks Commerce, a solution for product-based businesses; QuickBooks Online Accountant; and payroll solutions, such as online payroll processing, direct deposit of employee paychecks, payroll reports, electronic payment of federal and state payroll taxes, and electronic filing of federal and state income tax returns. This segment also offers payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; QuickBooks Cash business bank account; and financial supplies and financing for small businesses. The Consumer segment provides TurboTax income tax preparation products and services; and personal finance. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProConnect segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.

Sector

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10/31/23
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4/30/18
10-Q
1/31/18

DCF

Discounted Cash Flow Valuation of Intuit Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$5.111B	$6.141B	$7.276B	$8.498B	$9.782B	$11.09B	$12.4B	$13.64B	$14.79B	$15.77B	$16.56B	$165.6B
DCF		$5.34B	$5.502B	$5.588B	$5.593B	$5.516B	$5.36B	$5.129B	$4.833B	$4.484B	$4.094B	$40.94B
Value	$92.38B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 19%

Earnings Stability 85%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	07-2015	07-2016	07-2017	07-2018	07-2019	07-2020	07-2021	07-2022	07-2023	TTM
Net Margin	8.7%	21%	19%	20%	23%	24%	21%	16%	17%	19%
ROA	15%	29%	34%	30%	30%	20%	17%	9.3%	11%	12%
ROE	16%	84%	72%	51%	42%	36%	21%	13%	14%	16%

What is the average Net Margin?

The average Net Margin over the past 5 years is +20.21%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -1.17%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +19.65%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -4.6%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +29.33%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -8.28%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	07-2015	07-2016	07-2017	07-2018	07-2019	07-2020	07-2021	07-2022	07-2023	TTM
Debt FCF	0.37	1.02	0.33	0.21	0.19	1.44	0.64	1.99	1.27	1.17
Debt Equity	0.21	0.86	0.36	0.19	0.12	0.66	0.21	0.45	0.35	0.32
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.17.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.28.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	07-2016	07-2018	07-2020	07-2022	Trend
Revenue	17%	19%	23%	13%	2.8%
Net Income	14%	15%	9.3%	15%	-3.1%
Stockholders Equity	47%	49%	50%	5%	9.7%
FCF	26%	18%	27%	30%	3%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +19.23%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.8%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +14.51%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -3.06%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +48.97%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +9.72%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +18.45%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.99%.