Intuit Offers Good Business Prospects, But Not a Buy Opportunity at Current Valuation
November 21, 2023
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Intuit Inc ($NASDAQ:INTU) is a software technology company that focuses on business and financial management solutions. Despite the success of Intuit, its current share price does not necessarily reflect the company’s potential for growth. While Intuit has had a strong performance in recent years, its stock valuation has not seen the same success. The current share price does not accurately represent the intrinsic value of the company, and there is a risk of overvaluation due to market speculation.
Despite these concerns, Intuit still offers good business prospects for the future. The company’s strong focus on customer solutions, aggressive growth strategy and innovative products make it an attractive investment opportunity over time. This makes it a great choice for long-term investors, provided they do not enter the market at current valuations.
Market Price
INTUIT INC opened on Monday at a stock price of $564.0 and closed the day at $564.5, representing a 0.8% increase from its previous closing price of 560.2. Despite this, analysts suggest that it is not currently a buy opportunity due to the stock’s current valuation. The company is known for offering good business prospects with its wide range of products and services, such as QuickBooks Online, QuickBooks Desktop, QuickBooks Self-Employed, TurboTax, and Mint. For example, QuickBooks Online, the cloud-based version of the popular accounting software, is a core product for the company and has seen strong growth.
Although the company’s financials are solid and its products are well-positioned in the market, it is likely that further growth and appreciation in value will come from other areas. For this reason, analysts recommend waiting for a better valuation before investing in INTUIT INC stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Intuit Inc. More…
| Total Revenues | Net Income | Net Margin |
| 14.37k | 2.38k | 16.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Intuit Inc. More…
| Operations | Investing | Financing |
| 5.05k | -922 | -4.27k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Intuit Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.78k | 10.51k | 62.82 |
Key Ratios Snapshot
Some of the financial key ratios for Intuit Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.2% | 13.0% | 22.5% |
| FCF Margin | ROE | ROA |
| 33.3% | 11.5% | 7.3% |
Analysis
At GoodWhale, we analyze the financials of INTUIT INC and provide our assessment. After analyzing their Star Chart, we can conclude that INTUIT INC has a high health score of 9/10, indicating that it is able to safely ride out any crisis without the risk of bankruptcy. Additionally, INTUIT INC scores strongly in dividend, growth, and profitability. However, its score in asset is relatively weaker. Based on this analysis, we classify INTUIT INC as a ‘gorilla’ – a company we conclude has achieved stable and high revenue or earning growth due to strong competitive advantages. Given this assessment, we believe that investors looking for a long-term investment that exhibits stability in terms of revenue and earnings growth may be particularly interested in INTUIT INC. More…
Peers
Its competitors include Kingdee International Software Group Co Ltd, System Research Co Ltd, and BK Tops.
– Kingdee International Software Group Co Ltd ($SEHK:00268)
Kingdee International Software Group Co Ltd is a Chinese software company that specializes in enterprise software, cloud services and artificial intelligence. As of 2022, the company has a market capitalization of 36.47 billion USD and a return on equity of -3.86%. The company’s products and services are used by businesses of all sizes in a variety of industries, including banking, manufacturing, retail and healthcare.
– System Research Co Ltd ($TSE:3771)
System Research Co Ltd is a Japanese company that provides information technology services. The company has a market cap of 16.15 billion as of 2022 and a return on equity of 15.4%. System Research Co Ltd provides services such as software development, system integration, and consulting. The company also offers products such as software, hardware, and services for the financial industry.
– BK Tops ($KOSE:030790)
BK Tops is a publicly traded company with a market capitalization of $19.2 billion as of 2022. The company has a negative return on equity of 54.07%. BK Tops is engaged in the business of producing and selling toppings for ice cream, yogurt, and other desserts. The company’s products include chocolate chips, sprinkles, and other toppings.
Summary
Intuit Inc. (INTU) is a leading financial software company with a solid history of strong growth and financial performance. The company has a wide range of products and services for businesses and consumers, including personal finance, accounting, payroll, taxes, enterprise resource planning, and more. Analysts have generally been bullish on the stock, citing its strong fundamentals and potential for further growth.
Recent news and developments, such as the announcement of a new cloud-based accounting product, show that Intuit is continuing to innovate and make strides in the industry. Investors should look at Intuit’s long-term outlook and continue to monitor its progress.
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