Intuit Inc. (INTU) stock analysis

P/E below its 5-year median

Intuit's P/E of 20.8 is below its own 5-year median of 58.7.

P/E below the industry

Intuit's P/E of 20.8 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

Intuit's EV/EBITDA of 16.1 is below its 5-year median of 47.4.

P/B above the industry

Intuit's price-to-book of 4.82 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $342.64 is below our fair value estimate of $590.08.

Margin of safety over 20%

The price is 41.9% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 14.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 25.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 18.0% over the last twelve months, against a 5-year average of 17.2% a year.

Growing faster than the industry

Revenue grew 13.9% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

Intuit raised its full fiscal year 2026 Non-GAAP operating income outlook on May 20, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 23.6% over the last twelve months and averaged 18.1% over five years.

Return on capital over 10%

Return on invested capital was 20.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Intuit's return on equity of 23.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings grew over 5 years

Net income grew 17.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 21.3% over the last twelve months, against a 5-year average of 18.6%.

Net margin above the industry

Intuit's net margin of 21.3% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

High debt

Debt is 40.4% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 20.6% five years ago to 40.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 115% of total debt.

Interest well covered

Operating income covers interest expense 23.0 times.

Short-term assets cover short-term debts

Current assets are 1.51 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.09; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Intuit paid dividends worth 1.5% of the share price over the last twelve months.

Yield below Treasuries

The 1.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Intuit yields 1.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 29.5% of net income.

Covered by free cash flow

Dividends take 15.5% of free cash flow.