Intuit Inc. Analysts Rate Stock as Promising Growth Opportunity

Intuit Inc. receives a 77% rating from Validea's growth model, indicating solid fundamentals and a favorable investment potential in the Software & Programming sector. Analysts show strong interest in the stock's future growth prospects.

Date: 01-01-2025

AI Rating: 6

Overview of INTUIT INC's Rating

Validea’s guru fundamental report for INTUIT INC highlights a favorable rating of 77% using the P/B Growth Investor model by Partha Mohanram. This score suggests that Intuit meets many desired characteristics for growth stocks, particularly low book-to-market ratios combined with strong underlying fundamentals.

The score of 77% indicates a moderately strong interest in the stock, further emphasized by the fact that ratings above 80% typically suggest higher levels of investor interest. This indicates that while the rating is positive, there is still room for growth.

Passing Criteria

Several key metrics passed the analysis, indicating strong performance in these areas:

Book/Market Ratio: PASS
Return on Assets: PASS
Cash Flow from Operations to Assets: PASS
Cash Flow from Operations to Assets vs. Return on Assets: PASS
Return on Assets Variance: PASS
Sales Variance: PASS
Advertising to Assets: PASS

These metrics suggest that Intuit has maintained solid operational efficiency and financial health, which may positively influence investor confidence and stock price stability.

Failing Criteria

However, the report indicates failures in two critical areas:

Capital Expenditures to Assets: FAIL
Research and Development to Assets: FAIL

Failure in these areas may raise some red flags regarding the company's investment in future growth opportunities. Capital expenditures and research and development are pivotal for a tech company like Intuit that needs to innovate and expand its market reach. This could lead to concerns about long-term sustainability if these areas do not improve.

Overall, although INTUIT INC receive many passing scores, the failures in capital expenditures and R&D may affect investor sentiment and potentially the stock price, especially if investors perceive these as limitations for future growth.

Stocks: INTU