Intuit Inc (INTU)'s Winning Formula: Financial Metrics and Competitive Strengths

Exploring the Robust Financial Health and Growth Prospects of Intuit Inc

Intuit Inc (INTU, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial performance. With a current share price of $668.71 and a daily gain of 1.14%, coupled with a three-month change of 3.72%, Intuit Inc stands out in the financial landscape. A detailed analysis, supported by the GF Score, indicates that Intuit Inc is poised for significant growth in the foreseeable future.

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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 are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. For Intuit Inc, the GF Score is an impressive 96 out of 100, indicating a high potential for outperformance.

Understanding Intuit Inc's Business

Intuit Inc, with a market cap of $187.22 billion and annual sales of $15.09 billion, is a dominant provider in the U.S. for small-business accounting and DIY tax-filing software through its products like QuickBooks, TurboTax, and Lacerte. Founded in the mid-1980s, Intuit has maintained a substantial market share and demonstrates a consistent operational margin of 23%.

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Financial Strength Breakdown

Intuit Inc's Financial Strength is robust, with an Interest Coverage ratio of 12.81, significantly above the minimum recommended by Benjamin Graham. The company's Altman Z-Score of 10.36 further underscores its financial stability, and a Debt-to-Revenue ratio of 0.43 indicates prudent debt management.

Profitability and Growth Metrics

Intuit Inc's Profitability Rank is outstanding at 10/10, reflecting its superior ability to generate profits relative to its peers. The company's Predictability Rank of 4.0 stars out of five highlights consistent operational performance, boosting investor confidence.

Intuit Inc's commitment to growth is evident in its Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate of 20.4% outperforms 74.39% of competitors in the Software industry. Additionally, its EBITDA growth over the past three and five years underscores its ongoing growth capabilities.

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Conclusion: A Promising Outlook for Intuit Inc

Considering Intuit Inc's strong financial strength, exceptional profitability, and consistent growth metrics, the GF Score highlights the company's unmatched position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using 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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.