Intuit Inc. (INTU): a likely value trap?

Avoid — the "cheap" P/E reflects a real, ongoing growth slowdown and AI-competition fear, not a one-off panic.

⚠ TRAP Fundamentals77/100

Fell 21% in 11 trading day(s) — now $269.40

Why INTU dropped

The stock has been sliding for months on a genuine fundamental deterioration: fiscal 2026 revenue grew 14%, but fiscal 2027 revenue guidance was set at $23.279 billion to $23.512 billion, implying growth of 9 percent to 10 percent and a clear deceleration from fiscal 2026, and this guidance was reaffirmed (not improved) at a September 17 investor day, which itself triggered more selling. Layered on top: back in May the company already cut 17% of its full-time workforce while revenue growth slowed to 10%, the slowest since 2024, and TurboTax revenue forecasts were cut due to fears that generative AI will erode Intuit's tax-prep business. Goldman Sachs has a Sell rating, citing limited visibility into newer growth areas and pressure in the tax business.

Fwd P/E 9.9Op margin 17.6%Rev growth 13.7%Debt/equity 44.3%Analyst upside 50.6%

How this scored 77/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 21.3%

✅ Generates cash Free cash flow $6.4B

✅ Not drowning in debt Debt/equity 44.3% (limit 200%)

✅ Can pay its bills Current ratio 1.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 22/25

Operating margin 17.6% 6/9

Net profit margin 21.3% 8/8

Return on equity 23.6% 7/8

Growth Is it getting bigger, or dying? 15/25

Revenue growth 13.7% 6/9

Earnings growth -1.4% 2/8

Expected profit change 68.4% 8/8

Value Is it cheap right now? 22/25

Forward P/E 9.9 9/10

PEG ratio 0.9 7/8

Analyst target upside 50.6% 6/7

Balance sheet Will it survive? 18/25

Debt / equity 44.3% 9/10

Current ratio 1.5 3/8

Free cash flow $6.4B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-29. Research only — not financial advice.