Fundamental Analysis
More Money, More Time, More Confidence
Whatever prosperity means to you, we’re committed to working on your behalf and making it happen. Every day we innovate with our flagship products – TurboTax, QuickBooks, and Mint. So no matter your financial need, we have a solution that can help. Whether you’re a consumer, self-employed, or a small business owner, we’re in your corner to help make your dreams of prosperity come true.
https://www.intuit.com/company/
Reasons to buy – INTUIT
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see INTUIT makes a margin of 55% on Operating Level and about 41% on Net level. This means that out of $1 that it makes $0.41 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 15% in the revenue and the net profit figures grew by 24%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see INTUIT makes a Return on Assets of 82% and Return of Equity of 203% which is pretty good.
Intuit creates well known software products like Mint, TurboTax, QuickBooks, ProConnect. One of the things you should notice about good technology companies is that they do not have to invest a lot of money to create assets and this leads to very good margins and efficiency ratios.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by INTUIT to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
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