INTU

But one company I've done a few videos on that I think is a pretty interesting value play. Whether you're a value investor, a growth investor, a dividend growth investor, and that's into it, ticker symbol INTU. If you've been following the market, you know software stocks have gotten beaten up over the past year and a half. In it's no different. They own QuickBooks, they own Turboax, they own Mailchimp, they own Credit Karma, pretty big software company in the US. And at one point, they were down 67% from their all-time high. And that was over the span of about a year. They've since rebounded a little bit, but it's still definitely in the value play territory, especially relative to how it's historically traded.

Since AI coding agents came out, basically, the thought has been that software companies are now less valuable. There's thoughts that there could be increased competition coming very quickly. And there's also a question about whether these companies can exist in the same exact business model they do today. So companies like in it and Salesforce which I'll discuss later, these were viewed as premium companies. They traded at premium multiples cuz they're thought to be reliable subscription revenue that was going to be there in the long run continue growing. And now some investors are questioning that. But that could be the opportunity for the long-term investor.

Into its earnings per share over the trailing 12 months, it's at an all-time high $234. It's up 18.4% year-over-year in the same time where the stock fell 67%. And you can see in the long run into it has been a compounding machine of earnings growth. They generate a ton of free cash flow. 7.7 billion over the trailing 12 months. That's up 26% year-over-year. Over the past 10 years, a 26% compound annual growth rate of free cash flow. And this is why INT has become a dividend growth stock. The current forward-looking dividends $4.80. forward-looking dividend yield 1.3%. Over the past 5 years, they've more than doubled their dividend payment, growing at a 15.2% compound annual growth rate. And you can see they've been raising the dividend every single year going back to 2011. The most recent div increase was 15.3%. The one prior to that was 15.5%. And yes, the stock has gone up from its recent low, but it's still definitely cheap. If we look over the past 5 years, this 1.3% yield, it's in the 94th percentile, the median yield in that time is 0.65%. So compared to it, so compared to how into it has historically traded, the stock is looking cheap. The dividends super sustainable at a 19.5% free cash flow payout ratio. That's one of the lowest of the past 10 years for them. Based on an earnings payout ratio, it's 30.7%. Very sustainable. If we look at the company's earnings per share over the trailing 12 months and we look at their PE ratio, this is in our tool called the PE analyzer, similar to the yield analyzer we were just looking at. And you can see that it's currently in the fifth percentile, meaning that it's historically low P ratio based on the past 5 years. Every single day, the P ratio over the past 5 years, this is well below the median, which is 59. This is trailing 12 months gap earnings per share. We can also look at the forward-looking earnings per share. This would be non-GAAP. The median multiple in that time is 31.72. We're currently at a forward-looking P of 13.5. So, this is next year's earnings per share expectations. That's historically low and super cheap. If the company continues to grow earnings 10 to 15% a year, in hindsight, that will look very cheap. Here's another way to look at it. We have the value graph tool. If we go back to that forwardlooking earnings per share and we look at the median multiple over the past five years that 31.72 and we assume that to be the implied fair value of the stock whenever it's trading at that multiple then right now into it stock is trading 57% below the implied fair value. If it ever got back up to that 5-year median of 31.72 it would be 134% upside from today's price. And this isn't even accounting for the growth in the years to come. That's just a rerating based on the multiple the stock is trading at. The actual business and earnings will continue growing over time. At least that's what analysts are expecting right now. And that's what recent history shows for into it stock. Even if the stock doesn't get rerated upwards, current earnings estimates are expecting the stock to continue growing. The stock would have 69% upside by 2030, 14.4% annualized growth. And if the stock gets rerated back up to its historical median, and if the stock gets rerated back up to its historical median, that'd be huge for the stock. So, those were some of my thoughts on into it, I think it's still a pretty interesting value play. I will definitely be covering that after it reports earnings. I'll give it its own full detailed video with some more information. So, subscribe if you want to see that.

Another earnings stock. Okay, let's go take a look at INTU. That's Intuit. INTU. INTU. All right, looking at INTU. Look at that, Joe. Big, beautiful move right there off the bottom of that buy signal. Yeah, boy. Now, it did push through these order blocks over here, and it's been getting more and more and more greedy. And it's kind of an outlier in its own its own right. I mean, you got the whole sector moving against it. And this is in the tech sector software application. Let's go look at tech sector. Where's tech sector?

Number three. Not bad not bad on the performance metrics, but not a lot of support. There's not a lot of help generating uh uh some some other buy signals to help push that up even higher. So, yeah, just wanted to mention over there. Uh let's uh let's finish out this Intoit real quick.