Is Intuit (INTU) stock a good buy?

Is Intuit (INTU) stock a good buy?

This is a step-by-step stock review to answer the question, is Intuit (INTU) stock a good buy?

This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.

What are the 4Ms?

  • MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
  • Meaning – The meaning is the business model and how scalable the revenue streams are.
  • Moat – The moat is how the business compares to other companies in the same Sector and Industry.
  • Management – The management is the track record of the CEO.

What 4M score are we going for?

  • 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
  • 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
  • 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.


Table of Contents

The following links will direct you to key topics to help answer the question, is Intuit (INTU) stock a good buy?

  1. Intuit Company History
  2. MOS
  3. Meaning
  4. Moat
  5. Management
  6. 4M Score
  7. Is Intuit (INTU) stock a good buy?

1.  Intuit Company History

When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.

  • Founded in 1983: Intuit was established by Scott Cook and Tom Proulx in Palo Alto, California.
  • Headquarters: Located in Mountain View, California.
  • First Product (1984): Launched Quicken, a personal finance software that simplified money management.
  • Rapid Growth: Expanded product offerings to include TurboTax (1984) for tax preparation and QuickBooks (1992) for small business accounting.
  • Public Offering (1993): Intuit went public, trading on NASDAQ under the ticker symbol INTU.
  • Acquisitions: Acquired companies like Mint.com (2009) for personal finance management and Credit Karma (2020) to enhance financial services.
  • Global Presence: Operates in multiple countries, serving millions of customers worldwide.
  • Technological Leadership: Pioneered cloud-based software solutions, enabling users to access financial data anytime, anywhere.
  • Customer Focus: Known for intuitive, user-friendly software and exceptional customer service.
  • Commitment to Innovation: Continuously updates products with the latest technology to meet evolving customer needs.
  • Financial Empowerment: Aims to empower individuals and small businesses to manage their finances more effectively.
  • Awards and Recognition: Consistently recognized as one of the best places to work and for its innovation in financial software.
  • Sustainability and Social Responsibility: Dedicated to corporate social responsibility and sustainable business practices.

2. MOS (Margin of Safety)

When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.

  • Summary: On sale
  • Score: 89/100
  • MOS: 80%

To see the most up-to-date Summary, Score, and MOS, please log into Tykr.

3. Meaning

When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.

Here is how Intuit (INTU) makes money:

  • Software Sales: Makes money by selling software like QuickBooks, TurboTax, and Mint for accounting, tax preparation, and personal finance management.
  • Subscription Services: Generates revenue from subscription-based models for their cloud-based software solutions.
  • Payment Processing: Earns from payment processing fees through QuickBooks Payments.
  • Financial Services: Provides financial services and products through partnerships and earns commissions.
  • Advertising: Gains revenue from advertising on platforms like Mint.com.
  • Credit Monitoring: Offers credit monitoring services through Credit Karma and earns from related financial product recommendations.
  • Enterprise Solutions: Provides software and services for larger businesses and enterprises, generating additional revenue.

4. Moat

When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Intuit (INTU) stacks up against other companies.

  1. Paylocity Holding Corporation. (PCTY) – 100
  2. Karooooo Ltd. (KARO) – 95
  3. Intuit. (INTU) – 89
  4. AppFolio, Inc.(APPF) – 84
  5. Cadence Design Systems, Inc.(CDNS) – 84
  6. AppLovin Corporation. (APP) – 78

To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.

5. Management

When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.

  • Strategic Growth: Sasan K. Goodarzi led Intuit through a period of significant expansion and revenue growth.
  • Product Innovation: Spearheaded the development and launch of new products like QuickBooks Online, TurboTax Live, and QuickBooks Capital, enhancing customer experience and revenue streams.
  • Customer-Centric Approach: Focused on improving customer satisfaction and loyalty through product enhancements and customer support initiatives.
  • Global Expansion: Expanded Intuit’s presence internationally, increasing market share and revenue from global markets.
  • Cloud Transition: Successfully transitioned Intuit’s products to cloud-based platforms, improving accessibility and scalability.
  • Financial Performance: Achieved consistent revenue and profit growth, driving shareholder value and market capitalization.
  • Cultural Transformation: Fostered a culture of innovation, diversity, and inclusion within the company, driving employee engagement and productivity.
  • Acquisition Strategy: Implemented strategic acquisitions like Mint and Credit Karma, expanding Intuit’s product portfolio and user base.
  • Community Engagement: Strengthened Intuit’s commitment to corporate social responsibility through initiatives like Intuit Aid Assist and the Prosperity Hub program.
  • Recognition and Awards: Received numerous awards and accolades for leadership, innovation, and workplace culture under Sasan K. Goodarzi’s tenure.

6. 4M Score

All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.

What 4M score are we going for?

  • 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
  • 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
  • 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.

👉 The 4M Score of Intuit (INTU) is 80/100.

To see the most up-to-date 4M Score, please log into Tykr.

7. Is Intuit (INTU) stock a good buy?

Some of the top questions investors can have is Intuit (INTU) stock a good buy or should I buy Intuit (INTU) stock?

Investing in Intuit is often considered a smart move. Intuit, the maker of TurboTax, QuickBooks, and Mint, dominates the financial software market for individuals and small businesses. Its cloud-based solutions and AI innovations drive consistent revenue growth and user retention. With the increasing trend towards digital financial management, Intuit’s market potential is expanding. However, competition and regulatory challenges could impact its growth. Despite these risks, Intuit’s strong market position, innovative products, and reliable financial performance make it a compelling investment. Always evaluate market conditions and consult a financial advisor.

To truly know if Intuit is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.

If you found this stock review interesting, you may also like this review on Westlake.