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. Both the profitability and financial health of TTWO have multiple concerns. 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.
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 -27.70%, TTWO is not doing good in the industry: 87.32% of the companies in the same industry are doing better.
TTWO's Return On Equity of -62.47% is on the low side compared to the rest of the industry. TTWO is outperformed by 66.20% of its industry peers.
| 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 69.01% of its industry peers.
In the last couple of years the Gross Margin of TTWO has grown nicely.
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
Compared to 1 year ago, TTWO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that TTWO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TTWO (2.59) is better than 80.28% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that TTWO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, TTWO perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACCN/A
WACC8.55%
2.3 Liquidity
A Current Ratio of 0.85 indicates that TTWO may have some problems paying its short term obligations.
The Current ratio of TTWO (0.85) 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.
With a Quick ratio value of 0.85, TTWO perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
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
TTWO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.35%.
The Revenue has been growing by 14.92% on average over the past years. This is quite good.
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 34.22% 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 12.35% on average per year.
EPS Next Y3.43%
EPS Next 2Y79.56%
EPS Next 3Y55.72%
EPS Next 5Y34.22%
Revenue Next Year6.36%
Revenue Next 2Y23.96%
Revenue Next 3Y16.19%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 109.12, the valuation of TTWO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TTWO indicates a somewhat cheap valuation: TTWO is cheaper than 60.56% of the companies listed in the same industry.
TTWO is valuated expensively when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.20, the valuation of TTWO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTWO indicates a somewhat cheap valuation: TTWO is cheaper than 73.24% of the companies listed in the same industry.
TTWO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.12 | ||
| Fwd PE | 23.2 |
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 | 57.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TTWO's earnings are expected to grow with 55.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)31.82
PEG (5Y)N/A
EPS Next 2Y79.56%
EPS Next 3Y55.72%
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 (11/20/2024, 8:00:01 PM)
After market: 185.5 0 (0%)185.5
-0.51 (-0.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
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Market Cap32.58B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 109.12 | ||
| Fwd PE | 23.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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OCF(TTM)
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SpS
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TBVpS
PEG (NY)31.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -27.7% | ||
| ROE | -62.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 57.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
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PM growth 5Y
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F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
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Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-42.18%
EPS 3Y-27.43%
EPS 5Y
EPS Q2Q%
EPS Next Y3.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.35%
Revenue growth 3Y16.62%
Revenue growth 5Y
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Revenue Next 3Y
Revenue Next 5Y
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