Should I Buy Intuit (INTU)? Finance YouTuber Analysis

Sven Carlin places Intuit on his 'too hard pile' due to uncertainty regarding its long-term competitive moat against AI-powered competitors. While acknowledging its current low P/E and potential for growth, he sees significant risk from tech giants entering the market with AI tools, which could erode Intuit's pricing power and growth trajectory. He suggests there are better, less risky compounders available.

“Can I give you an answer on whether it has a moat? Unfortunately, no. This is the first time I look at this, and I didn't analysis to see, okay, do I want to become a specialist into this business? And then I say, is it simple? No, for me too hard pile as 99% of businesses should be.”

The YouTuber argues Intuit is a strong buy due to its significant price drop (58% from its peak) despite being a high-quality, low-capital-intensive business with strong free cash flow generation ($7.8 billion last year). He believes the market is mispricing it, overlooking its consistent 80% gross margins, 20% annual profit growth, and robust revenue growth (19% annualized over 5 years), even in the face of AI concerns.

“I look at this one as a company that you look at it was $813 a share less than 1 year ago, 10 months ago. It is now $323 a share. Guys, if I had told you 1 year ago that the stock was going to be down 58%. Intuit would be down 58%. You would have thought, 'You're crazy, Paul.'”

The YouTuber plans to build a position in Intuit, citing its strong market share (60%) in accounting and tax software (Quickbooks, Turbotax) and high switching costs for customers. Despite its position, it still has significant growth potential, currently reaching only 6% of its total addressable market. With a forward P/E of 20 and expected 14% annual earnings growth, the PEG ratio of 1.45 suggests a fair valuation and an attractive entry point.

“Aus meiner Sicht bietet sich jetzt eine interessante Einstiegchance, weshalb ich jetzt wieder eine Position in Init aufbauen werde.”

The YouTuber considers Intuit a high-quality company with consistent revenue and cash flow growth, trading at a fair 25 times free cash flow. While not super cheap, he acknowledges its potential for AI to be a net benefit, but also highlights risks from government-provided free tax filing and long-term AI competition in tax preparation, placing it in the moderate AI disruption category.

“Overall, if the business can continue to grow by double-digit growth rates from here, then I think a 25 price to free cash flow is pretty fair for the business. But I don't think that it is necessarily super cheap or undervalued.”

The YouTuber added Intuit to his portfolio, highlighting its role in small business software (like a 'small SAP') and tax/scoring for private customers, primarily in the US, making it less affected by tariffs. He acknowledges it's not a bargain but a quality stock, noting its dynamic dividend growth and previous high valuation during COVID.

“Ist jetzt kein Schnäppchen, ist aber eine Qualitätsaktion auch hier wollte ich mal ein Fuß in der Tür haben und ja gucken wir mal, wann habe ich die Aktie gekauft? Also ihr seht ja je to date quasi fast unverändert, wer viele andere Aktien so mit 30% im Minus sind.”

The YouTuber suggests Intuit is a quality stock now available at a reasonable price after a recent correction. He highlights its strong fundamentals, stable earnings, consistent dividend growth, and market leadership in software for small and medium businesses. The current valuation, with a P/E ratio of around 35, is near its 10-year average, and projected earnings growth indicates significant upside potential.

“Intuit wäre jetzt eine Aktie die dank der Korrektur hier endlich wieder so nah am fernwert tendiert und es wä jetzt aus meiner Sicht jedenfalls eine qualitätsaktie wo man sich n ein Stück überlegen kann eine erste trche Mal überlegen kann.”

The YouTuber recommends Intuit as a buy, despite its flat stock price over the past year. He argues that the company's intrinsic value has grown significantly, with revenue up 12.48% and free cash flow per share growing 18.51%. He believes the market will eventually recognize this fundamental growth, especially as Intuit integrates AI and expands its online services, setting it up for future success.

“with the flat share price and the growth in the fundamentals I believe it's a buy today”

The YouTuber recommends Intuit as a profitable infrastructure company behind products like TurboTax and QuickBooks, noting its steady revenue and net income growth over 20 years. He emphasizes its high margins (nearly 20% net margin) and the 'stickiness' of its software-as-a-service business model, making it a 'buy and forget' stock for long-term investors.

“great financials and a phenomenal stock and a phenomenal growth stock to just buy and forget about for the next 10 or 20 years”

Joseph Hogue argues that Intuit, a large software company with significant capital, is well-positioned to invest in and benefit from AI software development in accounting. He believes smaller competitors will struggle to keep up, allowing Intuit to gain market share by replacing human labor with AI.

“Intuit Inc ticker int you may have the most benefit from this shift to AI accounting”

The YouTuber highlights Intuit's market dominance with QuickBooks and TurboTax, its high retention rate, and growth through acquisitions like Mailchimp and Credit Karma, transitioning to a cloud-first model. Despite strong revenue growth, he considers the stock pricey at 10 times price-to-sales, suggesting it's not a top buy right now.

“Now that still means the stock is a little pricey here at 10 times on that price to sales basis which which is why this one didn't make it closer to that top spot”