Intuit (NASDAQ:INTU) Jumps 3.8% This Week, Though Earnings Growth Is Still Tracking Behind Five-year Shareholder Returns

Intuit (NASDAQ:INTU) Jumps 3.8% This Week, Though Earnings Growth Is Still Tracking Behind Five-year Shareholder Returns

Simply Wall St ·  06/16 21:50

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. One great example is Intuit Inc. (NASDAQ:INTU) which saw its share price drive 128% higher over five years. Better yet, the share price has risen 3.8% in the last week.

當您購買某家公司的股票時,需要記住它可能會破產,而您可能會損失資金。但是好消息是,如果您以正確的價格購買高質量的公司股票,則可以獲得超過100%的收益。以Intuit Inc. (納斯達克股票代碼:INTU) 爲一個很好的例子,它的股票價格在過去五年中上漲了128%。更好的是,Intuit的股票價格在過去一週上漲了3.8%。

Since it's been a strong week for Intuit shareholders, let's have a look at trend of the longer term fundamentals.


To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

引用巴菲特的話,“船隻會在世界各地航行,但扁平地球協會將空前盛行。市場上的價格和價值將繼續存在巨大差異… ”檢查市場情緒如何隨時間變化的一種方法是查看公司的股價與每股收益(EPS)之間的互動。

Over half a decade, Intuit managed to grow its earnings per share at 13% a year. This EPS growth is lower than the 18% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This optimism is visible in its fairly high P/E ratio of 54.21.


You can see below how EPS has changed over time (discover the exact values by clicking on the image).


NasdaqGS:INTU Earnings Per Share Growth June 16th 2024

We know that Intuit has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Intuit will grow revenue in the future.


What About Dividends?


As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Intuit's TSR for the last 5 years was 135%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!


A Different Perspective


It's good to see that Intuit has rewarded shareholders with a total shareholder return of 32% in the last twelve months. Of course, that includes the dividend. That's better than the annualised return of 19% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.


If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.


Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.


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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或者,發送電子郵件至editorial-team (at)。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。

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