TAKE-TWO INTERACTIVE SOFTWRE(NASDAQ:TTWO) stock Fundamental Analysis

Fundamental Rating

Overall TTWO gets a fundamental rating of 3 out of 10. We evaluated TTWO against 71 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.

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1. Profitability

1.1 Basic Checks

In the past year TTWO was profitable.

In the past year TTWO has reported a negative cash flow from operations.

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 Return On Assets of -27.70%. This is amonst the worse of the industry: TTWO underperforms 84.85% of its industry peers.

TTWO has a worse Return On Equity (-62.47%) than 68.18% 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

The Gross Margin of TTWO (57.30%) is better than 66.67% 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 2.60 indicates that TTWO is not a great score, but indicates only limited risk for bankruptcy at the moment.

The Altman-Z score of TTWO (2.60) is better than 75.76% of its industry peers.

A Debt/Equity ratio of 0.53 indicates that TTWO is somewhat dependend on debt financing.

TTWO has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.53
Debt/FCF	N/A
Altman-Z	2.6

ROIC/WACCN/A

WACC8.75%

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.

A Quick Ratio of 0.85 indicates that TTWO may have some problems paying its short term obligations.

Looking at the Quick ratio, with a value of 0.85, TTWO is in line with its industry, outperforming 45.45% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.85
Quick Ratio	0.85

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.

TTWO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.55% yearly.

The Revenue has been growing slightly by 0.35% in the past year.

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

TTWO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.63% yearly.

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 2Y79.41%

EPS Next 3Y55.53%

EPS Next 5Y37.63%

Revenue Next Year6.38%

Revenue Next 2Y24.55%

Revenue Next 3Y16.15%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 108.91, 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 62.12% 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 28.29.

Based on the Price/Forward Earnings ratio of 23.19, the valuation of TTWO can be described as rather expensive.

74.24% of the companies in the same industry are more expensive than TTWO, based on the Price/Forward Earnings ratio.

The average S&P500 Price/Forward Earnings ratio is at 24.44. TTWO is around the same levels.

		Industry Rank	Sector Rank
PE	108.91
Fwd PE	23.19

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TTWO.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	58.07

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 55.53% in the coming years. This may justify a more expensive valuation.

PEG (NY)32.99

PEG (5Y)N/A

EPS Next 2Y79.41%

EPS Next 3Y55.53%

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5. Dividend

5.1 Amount

TTWO does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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TAKE-TWO INTERACTIVE SOFTWRE

NASDAQ:TTWO (1/21/2025, 8:00:02 PM)

After market: 185.14 0 (0%)

185.14

-1.27 (-0.68%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupMedia & Entertainment

GICS IndustryEntertainment

Earnings (Last)11-06 2024-11-06/amc

Earnings (Next)02-06 2025-02-06/amc

Inst Owners98.64%

Inst Owner Change-0.25%

Ins Owners1.47%

Ins Owner Change-3.58%

Market Cap32.52B

Analysts83.33

Price Target199.95 (8%)

Short Float %4.7%

Short Ratio5.33

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/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)2.65%

PT rev (3m)8.57%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-39.76%

EPS NY rev (1m)0%

EPS NY rev (3m)-0.22%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-7.39%

Revenue NY rev (1m)-0.02%

Revenue NY rev (3m)0.07%

Valuation

		Industry Rank	Sector Rank
PE	108.91
Fwd PE	23.19
P/S	5.96
P/FCF	N/A
P/OCF	N/A
P/B	5.61
P/tB	N/A
EV/EBITDA	58.07

EPS(TTM)1.7

EY0.92%

EPS(NY)7.98

Fwd EY4.31%

FCF(TTM)-3.18

FCFYN/A

OCF(TTM)-2.31

OCFYN/A

SpS31.07

BVpS33.02

TBVpS-19.8

PEG (NY)32.99

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	2.6

F-Score3

WACC8.75%

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 2Y79.41%

EPS Next 3Y55.53%

EPS Next 5Y37.63%

Revenue 1Y (TTM)0.35%

Revenue growth 3Y16.62%

Revenue growth 5Y14.92%

Sales Q2Q%2.08%

Revenue Next Year6.38%

Revenue Next 2Y24.55%

Revenue Next 3Y16.15%

Revenue Next 5Y13.37%

EBIT growth 1Y56.89%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year38.69%

EBIT Next 3Y59.63%

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

TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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