Should You Be Adding Intuit (NASDAQ:INTU) To Your Watchlist Today?

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It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Intuit (NASDAQ:INTU). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

Check out our latest analysis for Intuit

How Quickly Is Intuit Increasing Earnings Per Share?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Intuit managed to grow EPS by 11% per year, over three years. That growth rate is fairly good, assuming the company can keep it up.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Intuit maintained stable EBIT margins over the last year, all while growing revenue 13% to US$16b. That's encouraging news for the company!

The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

earnings-and-revenue-history
NasdaqGS:INTU Earnings and Revenue History November 21st 2024

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Intuit's forecast profits?

Are Intuit Insiders Aligned With All Shareholders?

Owing to the size of Intuit, we wouldn't expect insiders to hold a significant proportion of the company. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Notably, they have an enviable stake in the company, worth US$4.4b. This suggests that leadership will be very mindful of shareholders' interests when making decisions!

Does Intuit Deserve A Spot On Your Watchlist?

One positive for Intuit is that it is growing EPS. That's nice to see. If that's not enough on its own, there is also the rather notable levels of insider ownership. These two factors are a huge highlight for the company which should be a strong contender your watchlists. We don't want to rain on the parade too much, but we did also find 1 warning sign for Intuit that you need to be mindful of.

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