Morningstar Rating

Stock Research and Analysis

by Andrew Lange

Bulls Say

There is a large opportunity for Intuit to expand QuickBooks Online. Small-business penetration is only 2% in the U.S. and 0%-1% worldwide.
Revenue should expand as the company further penetrates its large user base of QuickBooks with additional services. According to management, only 27% of QuickBooks users use the firm's payroll services and less than 10% have adopted Intuit's payment services.
Intuit's ability to listen to its customers and incorporate their feedback into its products has enabled the firm to flourish and grow profitably, even under the threat of competition. Read more 

Bears Say

While the number of individuals using Intuit's free tax filing alternative as a percentage of total paid units has remained steady during the past tax filing seasons, the Free Filing Alliance could place a ceiling on Intuit's growth potential.
Intuit's tax tools are U.S.-centric. Therefore, the company cannot easily leverage its consumer tax business into other international geographies.
Intuit's flagship products are mature, which could curb growth. In addition, the company may need to increase its R&D expenses to keep large corporations and free Internet-based competitors at bay. Read more 

Management

Brad Smith, CEO since early 2008 and an employee since 2003, has held several positions in the company. Before joining Intuit, he held several executive positions at ADP, a close competitor of the firm. His total compensation during the past three fiscal   Read more 

Profile

Intuit develops and markets well-known and trusted software products such as QuickBooks for small-business accounting, TurboTax for preparing personal tax returns, and Quicken   Read more 

Don't Underestimate Fiat Chrysler 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.