INTU – Market expectations are for Uniform ROA to reach a record high; management is confident about products, revenue growth, and ESG

• Intuit Inc. (INTU) currently trades above corporate averages and at a historical high relative to Uniform earnings, with a 49.8x Uniform P/E (Fwd. V/E’).
• At these levels, markets are pricing in expectations for Uniform ROA to reach a record high of 90%, accompanied by 5% Uniform asset growth.
• However, analysts expect Uniform ROA to compress to 40% in 2023, accompanied by 12% Uniform asset growth.
• If sustained going forward, these levels would imply a stock price closer to $320, representing approximately 42% equity downside for the firm.
• That said, the firm’s most recent earnings call suggests management is confident about products, revenue growth, and ESG.