Intuit Inc. (NASDAQ: INTU)

Sector: Technology Industry: Software - Application CIK: 0000896878
Market Cap 182.36 Bn
P/B 9.44
P/E 44.28
P/S 9.38
ROIC (Qtr) 15.74
Div Yield % 0.66
Rev 1y % (Qtr) 18.34
Total Debt (Qtr) 6.78 Bn
Debt/Equity (Qtr) 0.35

About

Intuit Inc., a global financial technology company with the ticker symbol INTU, operates in the financial management, compliance, and marketing industry. The company is renowned for its development of innovative solutions that empower consumers and small businesses to manage their finances, acquire and retain customers, save money, settle debts, and file taxes with ease and confidence. Intuit's primary business activities encompass the provision of financial management, compliance, and marketing products and services. These activities are categorized...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 6.48B provides robust 0.96x coverage of total debt 6.78B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 3.51B provide 4.68x coverage of short-term debt 749M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 6.48B provides exceptional 26.46x coverage of interest expenses 245M, showing strong debt service capability.
  • Tangible assets of 14.07B provide exceptional 13.47x coverage of deferred revenue 1.04B, showing strong service capability backing.
  • Robust free cash flow of 6.35B exceeds capital expenditure of 129M by 49.25x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 6.48B barely covers its investment activities of (932M), with a coverage ratio of -6.95, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 6.48B provides thin coverage of dividend payments of (1.23B) with a -5.25 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (932M) provide weak support for R&D spending of 3.07B, which is -0.30x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 3.51B provide limited coverage of acquisition spending of (184M), which is -19.05x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 6.48B shows concerning coverage of stock compensation expenses of 2B, with a 3.24 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 281.21 Bn 33.75 6.55 10.73 Bn
2 CRM Salesforce, Inc. 248.88 Bn 34.46 6.17 11.14 Bn
3 SHOP Shopify Inc. 217.18 Bn 121.94 20.30 1.12 Bn
4 UBER Uber Technologies, Inc 182.87 Bn 10.99 3.69 12.19 Bn
5 INTU Intuit Inc. 182.36 Bn 44.28 9.38 6.78 Bn
6 NOW ServiceNow, Inc. 151.53 Bn 87.54 11.96 2.40 Bn
7 ADBE Adobe Inc. 146.69 Bn 21.08 6.33 6.64 Bn
8 ADP Automatic Data Processing Inc 108.05 Bn 26.12 5.17 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.61 2.68
EV to Cash from Ops. EV/CFO 28.70 13.34
EV to Debt EV to Debt 27.43 57.60
EV to EBIT EV/EBIT 34.28 19.20
EV to EBITDA EV/EBITDA 30.59 15.11
EV to Free Cash Flow [EV/FCF] EV/FCF 29.29 14.78
EV to Market Cap EV to Market Cap 1.02 -93.16
EV to Revenue EV/Rev 9.57 4.63
Price to Book Value [P/B] P/B 9.44 4.29
Price to Earnings [P/E] P/E 44.28 -132.44
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.34 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 29.30 4.25
Dividend per Basic Share Div per Share (Qtr) 4.32 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 18.97 2.52
Interest Coverage Int. cover (Qtr) 22.15 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 35.18 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.08 9,763.58
Dividend Growth (1y) % Div 1y % (Qtr) 15.51 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 38.37 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 36.03 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 45.26 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 48.10 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 41.46 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 23.50 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.79 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.59 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.19 0.02
Cash Ratio Cash Ratio (Qtr) 0.47 3.75
Current Ratio Curr Ratio (Qtr) 1.39 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.35 0.17
Interest Cover Ratio Int Coverage (Qtr) 22.15 -52.32
Times Interest Earned Times Interest Earned (Qtr) 22.15 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 32.50 -100.06
EBIT Margin % EBIT Margin % (Qtr) 27.93 -164.24
EBT Margin % EBT Margin % (Qtr) 26.67 -116.94
Gross Margin % Gross Margin % (Qtr) 80.70 58.20
Net Profit Margin % Net Margin % (Qtr) 21.20 -121.65