TAKE-TWO INTERACTIVE SOFTWRE (TTWO)
US8740541094 - Common Stock
Overall TTWO gets a fundamental rating of 3 out of 10. We evaluated TTWO against 72 industry peers in the Entertainment industry. TTWO may be in some trouble as it scores bad on both profitability and health. TTWO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TTWO was profitable.
TTWO had a negative operating cash flow in the past year.
In multiple years TTWO reported negative net income over the last 5 years.
Of the past 5 years TTWO 4 years had a positive operating cash flow.
1.2 Ratios
TTWO has a worse Return On Assets (-27.70%) than 84.51% of its industry peers.
With a Return On Equity value of -62.47%, TTWO is not doing good in the industry: 67.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -27.7% | ||
| ROE | -62.47% | ||
| ROIC | N/A |
ROA(3y)-10.45%
ROA(5y)-2.68%
ROE(3y)-22.51%
ROE(5y)-6.78%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TTWO has a better Gross Margin (57.30%) than 67.61% of its industry peers.
TTWO's Gross Margin has improved in the last couple of years.
TTWO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 57.3% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.16%
GM growth 5Y5%
2. Health
2.1 Basic Checks
TTWO does not have a ROIC to compare to the WACC, probably because it is not profitable.
TTWO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TTWO has more shares outstanding
The debt/assets ratio for TTWO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.53 indicates that TTWO is not a great score, but indicates only limited risk for bankruptcy at the moment.
TTWO's Altman-Z score of 2.53 is fine compared to the rest of the industry. TTWO outperforms 73.24% of its industry peers.
TTWO has a Debt/Equity ratio of 0.53. This is a neutral value indicating TTWO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, TTWO is in line with its industry, outperforming 45.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.53 |
ROIC/WACCN/A
WACC8.71%
2.3 Liquidity
TTWO has a Current Ratio of 0.85. This is a bad value and indicates that TTWO is not financially healthy enough and could expect problems in meeting its short term obligations.
TTWO has a Current ratio (0.85) which is comparable to the rest of the industry.
TTWO has a Quick Ratio of 0.85. This is a bad value and indicates that TTWO is not financially healthy enough and could expect problems in meeting its short term obligations.
TTWO's Quick ratio of 0.85 is in line compared to the rest of the industry. TTWO outperforms 45.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for TTWO have decreased strongly by -42.18% in the last year.
Measured over the past years, TTWO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.55% on average per year.
The Revenue has been growing slightly by 0.35% in the past year.
Measured over the past years, TTWO shows a quite strong growth in Revenue. The Revenue has been growing by 14.92% on average per year.
EPS 1Y (TTM)-42.18%
EPS 3Y-27.43%
EPS 5Y-12.55%
EPS Q2Q%-45.9%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y16.62%
Revenue growth 5Y14.92%
Sales Q2Q%2.08%
3.2 Future
Based on estimates for the next years, TTWO will show a very strong growth in Earnings Per Share. The EPS will grow by 37.63% on average per year.
Based on estimates for the next years, TTWO will show a quite strong growth in Revenue. The Revenue will grow by 13.37% on average per year.
EPS Next Y3.3%
EPS Next 2Y79.72%
EPS Next 3Y55.56%
EPS Next 5Y37.63%
Revenue Next Year6.4%
Revenue Next 2Y24.16%
Revenue Next 3Y16.43%
Revenue Next 5Y13.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 107.04, TTWO can be considered very expensive at the moment.
TTWO's Price/Earnings ratio is a bit cheaper when compared to the industry. TTWO is cheaper than 60.56% of the companies in the same industry.
TTWO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.73.
Based on the Price/Forward Earnings ratio of 22.72, the valuation of TTWO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TTWO is valued a bit cheaper than 73.24% of the companies in the same industry.
TTWO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.04 | ||
| Fwd PE | 22.72 |
4.2 Price Multiples
TTWO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 56.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TTWO's earnings are expected to grow with 55.56% in the coming years.
PEG (NY)32.43
PEG (5Y)N/A
EPS Next 2Y79.72%
EPS Next 3Y55.56%
5. Dividend
5.1 Amount
TTWO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAKE-TWO INTERACTIVE SOFTWRE
NASDAQ:TTWO (12/20/2024, 8:00:01 PM)
After market: 181.967 0 (0%)181.97
+0.59 (+0.33%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners98.64%
Inst Owner Change1.13%
Ins Owners1.47%
Ins Owner Change-3.58%
Market Cap31.96B
Analysts83.33
Price Target194.78 (7.04%)
Short Float %4.01%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)183.28%
Min EPS beat(2)55.99%
Max EPS beat(2)310.57%
EPS beat(4)3
Avg EPS beat(4)144.78%
Min EPS beat(4)-3.51%
Max EPS beat(4)310.57%
EPS beat(8)4
Avg EPS beat(8)67.61%
EPS beat(12)6
Avg EPS beat(12)43.77%
EPS beat(16)10
Avg EPS beat(16)38.84%
Revenue beat(2)1
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-4.69%
Max Revenue beat(2)0.88%
Revenue beat(4)2
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.59%
Revenue beat(16)8
Avg Revenue beat(16)1.93%
PT rev (1m)5.53%
PT rev (3m)6.15%
EPS NQ rev (1m)-15.91%
EPS NQ rev (3m)-39.76%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-7.39%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.04 | ||
| Fwd PE | 22.72 | ||
| P/S | 5.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 56.63 |
EPS(TTM)1.7
EY0.93%
EPS(NY)8.01
Fwd EY4.4%
FCF(TTM)-3.18
FCFYN/A
OCF(TTM)-2.31
OCFYN/A
SpS31.07
BVpS33.02
TBVpS-19.8
PEG (NY)32.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -27.7% | ||
| ROE | -62.47% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 57.3% | ||
| FCFM | N/A |
ROA(3y)-10.45%
ROA(5y)-2.68%
ROE(3y)-22.51%
ROE(5y)-6.78%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.16%
GM growth 5Y5%
F-Score3
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5 | ||
| Cap/Depr | 13.96% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.53 |
F-Score3
WACC8.71%
ROIC/WACCN/A
Cap/Depr(3y)26.81%
Cap/Depr(5y)26.52%
Cap/Sales(3y)3.66%
Cap/Sales(5y)2.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-42.18%
EPS 3Y-27.43%
EPS 5Y-12.55%
EPS Q2Q%-45.9%
EPS Next Y3.3%
EPS Next 2Y79.72%
EPS Next 3Y55.56%
EPS Next 5Y37.63%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y16.62%
Revenue growth 5Y14.92%
Sales Q2Q%2.08%
Revenue Next Year6.4%
Revenue Next 2Y24.16%
Revenue Next 3Y16.43%
Revenue Next 5Y13.37%
EBIT growth 1Y56.89%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year37.64%
EBIT Next 3Y58.48%
EBIT Next 5Y29.11%
FCF growth 1Y-3169.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-412.49%
OCF growth 3YN/A
OCF growth 5YN/A