Intuit Inc (INTU, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $509.37, Intuit Inc has witnessed a surge of 2.18% over a period, marked against a three-month change of 23.89%. A thorough analysis, underlined by the GuruFocus Score Rating, suggests that Intuit Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Intuit Inc's GF Score components are as follows:
- 1. Financial strength rank: 7/10
- 2. Profitability rank: 10/10
- 3. Growth rank: 10/10
- 4. GF Value rank: 7/10
- 5. Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in profitability, growth, and momentum, and solid ranks in financial strength and GF value, GuruFocus assigned Intuit Inc the GF Score of 98 out of 100, which signals the highest outperformance potential.
Understanding Intuit Inc Business
Intuit Inc, with a market cap of $142.65 billion, is a leading 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. The company's sales stand at $14.07 billion, with an operating margin of 21.67%, reflecting its strong profitability.
Financial Strength Breakdown
According to the Financial Strength rating, Intuit Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for Intuit Inc stands impressively at 14.38, underscoring its strong capability to cover its interest obligations. With an Altman Z-Score of 9.06, Intuit Inc exhibits a strong defense against financial distress. With a favorable Debt-to-Revenue ratio of 0.51, Intuit Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Intuit Inc's impressive standing among its peers in generating profit. Intuit Inc's strong Predictability Rank of 3.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Intuit Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 20.4%, which outperforms better than 74.58% of 2392 companies in the Software industry. Moreover, Intuit Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 13.9, and the rate over the past five years is 13.9. This trend accentuates the company's continued capability to drive growth.
Next Steps
Given Intuit Inc's strong financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential outperformance. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
