TAKE-TWO INTERACTIVE SOFTWRE (TTWO)
US8740541094 - Common Stock
We assign a fundamental rating of 3 out of 10 to TTWO. TTWO was compared to 72 industry peers in the Entertainment industry. TTWO may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, TTWO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TTWO was profitable.
TTWO had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TTWO reported negative net income in multiple years.
TTWO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -29.36%, TTWO is not doing good in the industry: 85.92% of the companies in the same industry are doing better.
TTWO's Return On Equity of -63.43% is on the low side compared to the rest of the industry. TTWO is outperformed by 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -29.36% | ||
| ROE | -63.43% | ||
| 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
The Gross Margin of TTWO (56.01%) is better than 64.79% of its industry peers.
In the last couple of years the Gross Margin of TTWO has grown nicely.
The Profit Margin and Operating Margin are not available for TTWO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.01% |
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.
Compared to 1 year ago, TTWO has more shares outstanding
Compared to 5 years ago, TTWO has more shares outstanding
Compared to 1 year ago, TTWO has a worse debt to assets ratio.
2.2 Solvency
TTWO has an Altman-Z score of 2.51. This is not the best score and indicates that TTWO is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.51, TTWO is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
TTWO has a Debt/Equity ratio of 0.51. This is a neutral value indicating TTWO is somewhat dependend on debt financing.
TTWO's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. TTWO outperforms 45.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.51 |
ROIC/WACCN/A
WACC8.39%
2.3 Liquidity
A Current Ratio of 0.90 indicates that TTWO may have some problems paying its short term obligations.
TTWO's Current ratio of 0.90 is in line compared to the rest of the industry. TTWO outperforms 42.25% of its industry peers.
TTWO has a Quick Ratio of 0.90. This is a bad value and indicates that TTWO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.90, TTWO perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
TTWO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.18%.
The earnings per share for TTWO have been decreasing by -12.55% on average. This is quite bad
Looking at the last year, TTWO shows a decrease in Revenue. The Revenue has decreased by -0.01% in the last year.
TTWO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.92% yearly.
EPS 1Y (TTM)-42.18%
EPS 3Y-27.43%
EPS 5Y-12.55%
EPS Q2Q%-45.9%
Revenue 1Y (TTM)-0.01%
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 34.22% on average per year.
TTWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.35% yearly.
EPS Next Y2.84%
EPS Next 2Y79.86%
EPS Next 3Y55.21%
EPS Next 5Y34.22%
Revenue Next Year6.27%
Revenue Next 2Y24.27%
Revenue Next 3Y16.14%
Revenue Next 5Y12.35%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 103.37, which means the current valuation is very expensive for TTWO.
Based on the Price/Earnings ratio, TTWO is valued a bit cheaper than the industry average as 64.79% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.76. TTWO is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 21.90, TTWO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TTWO is valued a bit cheaper than 76.06% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.90. TTWO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 103.37 | ||
| Fwd PE | 21.9 |
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 | 43.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TTWO does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as TTWO's earnings are expected to grow with 55.21% in the coming years.
PEG (NY)36.39
PEG (5Y)N/A
EPS Next 2Y79.86%
EPS Next 3Y55.21%
5. Dividend
5.1 Amount
No dividends for TTWO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAKE-TWO INTERACTIVE SOFTWRE
NASDAQ:TTWO (11/7/2024, 11:17:53 AM)
175.73
+9.11 (+5.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 103.37 | ||
| Fwd PE | 21.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)36.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -29.36% | ||
| ROE | -63.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-42.18%
EPS 3Y-27.43%
EPS 5Y
EPS Q2Q%
EPS Next Y2.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y16.62%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y