Intuit Profitability Analysis

INTU
 Stock
  

USD 462.52  4.24  0.91%   

For Intuit profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Intuit to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Intuit Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Intuit's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Intuit Inc over time as well as its relative position and ranking within its peers. Please see Risk vs Return Analysis.
  
Price to Sales Ratio is likely to gain to 18.43 in 2022, whereas Sales per Share is likely to drop 33.17 in 2022. Accumulated Other Comprehensive Income is likely to drop to about (23.3 M) in 2022. Consolidated Income is likely to drop to about 1.9 B in 2022.

Intuit Revenues

8.97 Billion

Is Intuit's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Intuit. If investors know Intuit will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Intuit listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.19
Market Capitalization
132.3 B
Quarterly Revenue Growth YOY
0.35
Return On Assets
0.0887
Return On Equity
0.19
The market value of Intuit Inc is measured differently than its book value, which is the value of Intuit that is recorded on the company's balance sheet. Investors also form their own opinion of Intuit's value that differs from its market value or its book value, called intrinsic value, which is Intuit's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Intuit's market value can be influenced by many factors that don't directly affect Intuit's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Intuit's value and its price as these two are different measures arrived at by different means. Investors typically determine Intuit value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Intuit's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Intuit Inc Price to Earning vs. Current Ratio Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Intuit's current stock value. Our valuation model uses many indicators to compare Intuit value to that of its competitors to determine the firm's financial worth.
Intuit Inc is currently regarded as number one stock in current ratio category among related companies. It is currently regarded as number one stock in price to earning category among related companies reporting about  31.02  of Price to Earning per Current Ratio. Intuit Current Ratio is comparatively stable at the moment as compared to the past year. Intuit reported Current Ratio of 2.23 in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Intuit by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Intuit's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Intuit's earnings, one of the primary drivers of an investment's value.

Intuit Price to Earning vs. Current Ratio

Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Intuit 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
1.63 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Intuit 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
50.56 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Intuit Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Intuit, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Intuit will eventually generate negative long term returns. The profitability progress is the general direction of Intuit's change in net profit over the period of time. It can combine multiple indicators of Intuit, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-21.6 M-23.3 M
Consolidated Income2.4 B1.9 B
Net Income2.4 B1.9 B
Net Income Common Stock2.4 B1.9 B
Net Loss Income from Discontinued Operations-155.7 M-159.8 M
Operating Income2.9 B2.4 B
Income Tax Expense568.1 M513.8 M
Net Income Per Employee137.5 K120.9 K
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 was founded in 1983 and is headquartered in Mountain View, California. Intuit operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 13500 people.

Intuit Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Intuit. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Intuit position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Intuit's important profitability drivers and their relationship over time.

Intuit Profitability Trends

Intuit profitability trend refers to the progression of profit or loss within a business. An upward trend means that Intuit's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Intuit's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Intuit Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Intuit different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Intuit in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Intuit's future profitability.

Use Intuit in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Intuit position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Intuit will appreciate offsetting losses from the drop in the long position's value.

Intuit Pair Trading

Intuit Inc Pair Trading Analysis

The ability to find closely correlated positions to Intuit could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Intuit when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Intuit - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Intuit Inc to buy it.
The correlation of Intuit is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Intuit moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Intuit Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Intuit can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Intuit position

In addition to having Intuit in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Disruptive Technologies Thematic Idea Now

Disruptive Technologies
Disruptive Technologies Theme
New or established technology companies and funds across multiple sectors that are involved in development or marketing of products or services that experience disruptive trends and that are at the forefront of discussions on Wall Street. The Disruptive Technologies theme has 59 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Disruptive Technologies Theme or any other thematic opportunities.
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Please see Risk vs Return Analysis. Note that the Intuit Inc information on this page should be used as a complementary analysis to other Intuit's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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To fully project Intuit's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Intuit Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Intuit's income statement, its balance sheet, and the statement of cash flows.
Potential Intuit investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Intuit investors may work on each financial statement separately, they are all related. The changes in Intuit's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Intuit's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.