Operating Margin - Intuit Inc (NASDAQ:INTU)

Watchlist Manager

Watchlist

Price: 671 USD -0.62%

Market Cap: 186.7B USD

26.7%

Current

23%

Average

3.3%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

26.7%

Operating Profit

5.2B

Revenue

19.4B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		Intuit Inc NASDAQ:INTU	187.8B USD	27%
IL		Sapiens International Corporation NV NASDAQ:SPNS	779.6B USD	14%
US		Ezenia! Inc OTC:EZEN	567B USD	-132%
US		Palantir Technologies Inc NYSE:PLTR	460.4B USD	22%
DE		SAP SE XETRA:SAP	243.5B EUR	27%
US		Salesforce Inc NYSE:CRM	247.9B USD	22%
US		Applovin Corp NASDAQ:APP	244.8B USD	60%
US		Adobe Inc NASDAQ:ADBE	148.9B USD	37%
US	N	NCR Corp LSE:0K45	138B USD	5%
US		Synopsys Inc NASDAQ:SNPS	88.3B USD	17%
US		Cadence Design Systems Inc NASDAQ:CDNS	86B USD	32%

Intuit Inc
Glance View

Economic Moat

Wide

Market Cap

186.9B USD

Industry

Technology

Intuit Inc., a powerhouse in financial software, has evolved from its humble beginnings in the mid-1980s, when Scott Cook and Tom Proulx envisioned a seamless way for individuals to manage personal finances. The cornerstone of their vision was Quicken, a groundbreaking product that simplified checkbook balancing and financial tracking, swiftly gaining a loyal customer base. This inspired Intuit to expand its software offerings, delving into the complexities of tax preparation and small business management. TurboTax emerged as a dominant force in the tax software arena, revolutionizing how consumers and small businesses navigate the labyrinth of tax codes. QuickBooks soon followed, providing an indispensable tool for small businesses to streamline their accounting processes, manage payroll, and handle invoices with minimal effort. Today, Intuit earns its robust revenues by employing a subscription-based model for these flagship products, combining user-friendly interfaces with sophisticated, cloud-driven analytics that offer unparalleled financial insights. The company has deftly embraced the digital age by leveraging cloud technology, artificial intelligence, and machine learning to offer tailored solutions, thus driving customer loyalty through continuous innovation. By bundling these services and expanding through strategic acquisitions—such as Mint, a personal finance app, and Credit Karma, a credit and financial management platform—Intuit continues to diversify its portfolio and reinforce its position in the financial technology landscape. Through a mix of direct-to-consumer sales and partnerships with financial institutions, Intuit sustains its formidable presence, addressing the financial needs of millions across the globe.

View INTU Analysis

INTU Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	206.4 USD -0.44%
	Berkshire Hathaway Inc NYSE:BRK.A	751 483.7353 USD 0.2%
	Bank of America Corp NYSE:BAC	56.045 USD 0.3%
	Mastercard Inc NYSE:MA	577.28 USD 0.27%
	UnitedHealth Group Inc NYSE:UNH	325.2 USD 0.01%
	Exxon Mobil Corp NYSE:XOM	118.9005 USD 0.64%

	Franklin Covey Co NYSE:FC	16.99 USD -0.06%
	Mohawk Industries Inc NYSE:MHK	107.97 USD -0.56%
	Ardmore Shipping Corp NYSE:ASC	10.73 USD -0.56%
	ASGN Inc NYSE:ASGN	48.765 USD -0.6%
	Skyworks Solutions Inc NASDAQ:SWKS	64.72 USD -0.8%
	Weatherford International PLC NASDAQ:WFRD	79.09 USD -1.71%

	Johnson & Johnson NYSE:JNJ	206.4 USD -0.44%
	Bank of America Corp NYSE:BAC	56.045 USD 0.3%
	Mastercard Inc NYSE:MA	577.28 USD 0.27%
	Salesforce Inc NYSE:CRM	261.11 USD -1.33%
	Abbvie Inc NYSE:ABBV	229.7851 USD 0.82%
	Home Depot Inc NYSE:HD	343.512 USD -0.83%

	Monolithic Power Systems Inc NASDAQ:MPWR	943.78 USD -0.15%
	Applovin Corp NASDAQ:APP	712.97 USD -2.81%
	NVIDIA Corp NASDAQ:NVDA	185.12 USD 0.78%
	Cal-Maine Foods Inc NASDAQ:CALM	82.29 USD -1.27%
	Pro Medicus Ltd ASX:PME	232.17 AUD 4.44%
	Lundin Gold Inc TSX:LUG	119.96 CAD -0.42%

Intuit Inc
NASDAQ:INTU