INTU Drops 5.0% In A Day, Wait For A Dip To Buy The Stock

We believe there is not much to fear in INTU stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $186 Bil in market cap, Intuit provides financial management, tax preparation, and personalized loan recommendation products and services for consumers, small businesses, self-employed individuals, and accounting professionals globally.

[1] Valuation Looks Very High

This table highlights how INTU is valued vs broader market. For more details see: INTU Valuation Ratios

[2] Growth Is Strong

• Intuit has seen its top line grow at an average rate of 12.2% over the last 3 years
• Its revenues have grown 15% from $16 Bil to $18 Bil in the last 12 months
• Also, its quarterly revenues grew 15.1% to $7.8 Bil in the most recent quarter from $6.7 Bil a year ago.

This table highlights how INTU is growing vs broader market. For more details see: INTU Revenue Comparison

[3] Profitability Appears Strong

• INTU last 12 month operating income was $4.7 Bil representing operating margin of 25.8%
• With cash flow margin of 34.3%, it generated nearly $6.2 Bil in operating cash flow over this period
• For the same period, INTU generated nearly $3.5 Bil in net income, suggesting net margin of about 19.1%

This table highlights how INTU profitability vs broader market. For more details see: INTU Operating Income Comparison

[4] Financial Stability Looks Very Strong

• INTU Debt was $7.1 Bil at the end of the most recent quarter, while its current Market Cap is $186 Bil. This implies Debt-to-Equity Ratio of 3.8%
• INTU Cash (including cash equivalents) makes up $6.2 Bil of $37 Bil in total Assets. This yields a Cash-to-Assets Ratio of 16.9%

[4] Downturn Resilience Is Moderate

INTU saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• INTU stock fell 49.1% from a high of $694.66 on 29 November 2021 to $353.31 on 18 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 11 November 2024
• Since then, the stock increased to a high of $807.39 on 30 July 2025 , and currently trades at $662.66

 
2020 Covid Pandemic

• INTU stock fell 36.3% from a high of $305.61 on 19 February 2020 to $194.72 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 6 July 2020

 
2008 Global Financial Crisis

• INTU stock fell 38.3% from a high of $32.70 on 12 October 2007 to $20.19 on 1 December 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 19 February 2010

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read INTU Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.