Intuit Inc (INTU, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. With a current share price of $593.99, Intuit Inc has experienced a slight daily decrease of 0.29%, amidst a three-month decline of 4.97%. However, a detailed analysis based on the GF Score indicates that Intuit Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, revealing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Intuit Inc boasts a GF Score of 98 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Intuit Inc's Business
Intuit Inc, with a market cap of $166.05 billion and annual sales of $15.81 billion, is a dominant player in the software industry. It provides essential services like QuickBooks for small-business accounting, TurboTax for personal tax solutions, and Lacerte for professional tax offerings. Since its inception in the mid-1980s, Intuit has secured the majority of the U.S. market share in its niches, boasting an operating margin of 24.15%.
Financial Strength Breakdown
Intuit Inc's financial robustness is reflected in its impressive Interest Coverage ratio of 13.89, significantly above the benchmark set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 9.6 indicates a strong defense against financial distress. The strategic management of its debt, evidenced by a Debt-to-Revenue ratio of 0.41, further solidifies its financial health.
Profitability and Growth Metrics
Intuit Inc's Profitability Rank is exemplary, supported by a high Piotroski F-Score which indicates effective operational efficiency. The company's commitment to growth is evident from its 20.4% 3-Year Revenue Growth Rate, outperforming 74.08% of its industry peers. This growth trajectory is complemented by a consistent increase in EBITDA, highlighting its capacity for sustained expansion.
Conclusion
Considering Intuit Inc's strong financial strength, exceptional profitability, and robust growth metrics, the GF Score underscores the company's prime position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
