INTU

Intuit Inc

TMT, Finance/Real Estate


Presented:01/19/2023
Price:$378.60
Cap:$106.36B
Current Price:$617.89
Cap:$173.19B

Presented

Date01/19/2023
Price$378.60
Market Cap$106.36B
Ent Value$126.29B
P/E Ratio57.68x
Book Value$57.11
Div Yield0.77%
Shares O/S280.93M
Ave Daily Vol1,710,433
Short Int0.84%

Current

Price$617.89
Market Cap$173.19B
Intuit, Inc. engages in the provision of business and financial management solutions. It operates through the following segments: Small Business and Self-Employed, Consumer, Credit Karma, and ProConnect. The Small Business and Self-Employed segment offers QuickBooks financial and business management online services and desktop software, payroll solutions, payment processing solutions, and financing for small businesses. The Consumer segment includes do-it-yourself and assisted TurboTax income tax preparation products and services. The Credit Karma segment serves consumers with a personal finance platform that provides personalized recommendations of credit card, home, auto and personal loan, and insurance products, and online savings and checking accounts. The ProConnect segment serves professional accountants in the U.S. and Canada, who are essential to both small business success and tax preparation and filing. The company was founded by Scott D. Cook and Thomas A. Proulx in March 1983 and is headquartered in Mountain View, CA.

Publicly traded companies mentioned herein: Intuit Inc (INTU), Oracle Corp (ORCL)

Highlights

The presenter is long shares of Intuit Inc (INTU), which owns the QuickBooks, TurboTax, Credit Karma, and Mailchimp brands but largely generates its profits via QuickBooks and TurboTax. Those two businesses maintain dominant market positions within their respective segments but also have strong growth drivers for the next few years. Underwriting a 17% topline CAGR with earnings growth just above that level, he reaches ~$30 of CY2026 EPS and applies a 25x multiple to reach a price target of $750 per share (97% upside).

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Idea Discussion

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