TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis
NASDAQ:TTWO - Nasdaq - US8740541094 - Common Stock - Currency: USD
Taking everything into account, TTWO scores 3 out of 10 in our fundamental rating. TTWO was compared to 71 industry peers in the Entertainment industry. TTWO has a bad profitability rating. Also its financial health evaluation is rather negative. 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 -28.83%, TTWO is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
TTWO has a Return On Equity of -64.11%. This is in the lower half of the industry: TTWO underperforms 71.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.83% | ||
| ROE | -64.11% | ||
| 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
Looking at the Gross Margin, with a value of 57.92%, TTWO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 | 57.92% |
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.
TTWO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TTWO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.15 indicates that TTWO is not in any danger for bankruptcy at the moment.
TTWO has a Altman-Z score of 3.15. This is amongst the best in the industry. TTWO outperforms 83.33% of its industry peers.
TTWO has a Debt/Equity ratio of 0.54. This is a neutral value indicating TTWO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, TTWO perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.15 |
ROIC/WACCN/A
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.83 indicates that TTWO may have some problems paying its short term obligations.
TTWO has a Current ratio (0.83) which is in line with its industry peers.
A Quick Ratio of 0.83 indicates that TTWO may have some problems paying its short term obligations.
TTWO has a Quick ratio (0.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
TTWO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.71%.
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.
TTWO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.00%.
The Revenue has been growing by 14.92% on average over the past years. This is quite good.
EPS 1Y (TTM)-38.71%
EPS 3Y-27.43%
EPS 5Y-12.55%
EPS Q2Q%1.41%
Revenue 1Y (TTM)1%
Revenue growth 3Y16.62%
Revenue growth 5Y14.92%
Sales Q2Q%2.66%
3.2 Future
The Earnings Per Share is expected to grow by 37.63% on average over the next years. This is a very strong growth
TTWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.23% yearly.
EPS Next Y3.02%
EPS Next 2Y76.85%
EPS Next 3Y56.31%
EPS Next 5Y37.63%
Revenue Next Year6.29%
Revenue Next 2Y25.13%
Revenue Next 3Y16.03%
Revenue Next 5Y12.23%
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
Based on the Price/Earnings ratio of 123.77, the valuation of TTWO can be described as expensive.
TTWO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, TTWO is valued quite expensively.
Based on the Price/Forward Earnings ratio of 27.29, the valuation of TTWO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTWO indicates a somewhat cheap valuation: TTWO is cheaper than 74.24% of the companies listed in the same industry.
TTWO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.77 | ||
| Fwd PE | 27.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTWO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 113.01 |
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 56.31% in the coming years.
PEG (NY)40.93
PEG (5Y)N/A
EPS Next 2Y76.85%
EPS Next 3Y56.31%
5. Dividend
5.1 Amount
TTWO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
211.65
-3.59 (-1.67%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners98.64%
Inst Owner Change86.57%
Ins Owners1.47%
Ins Owner Change-3.86%
Market Cap37.36B
Analysts83.53
Price Target206.45 (-2.46%)
Short Float %4.82%
Short Ratio5.05
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)40.06%
Min EPS beat(2)24.14%
Max EPS beat(2)55.99%
EPS beat(4)4
Avg EPS beat(4)151.69%
Min EPS beat(4)24.14%
Max EPS beat(4)310.57%
EPS beat(8)5
Avg EPS beat(8)71.05%
EPS beat(12)6
Avg EPS beat(12)45.45%
EPS beat(16)10
Avg EPS beat(16)38.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)0.88%
Revenue beat(4)2
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-1.12%
Revenue beat(12)4
Avg Revenue beat(12)-1.92%
Revenue beat(16)7
Avg Revenue beat(16)0.94%
PT rev (1m)3.25%
PT rev (3m)11.85%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)71.75%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)8.33%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 123.77 | ||
| Fwd PE | 27.29 | ||
| P/S | 6.85 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 113.01 |
EPS(TTM)1.71
EY0.81%
EPS(NY)7.76
Fwd EY3.66%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-1.89
OCFYN/A
SpS30.88
BVpS32.31
TBVpS-19.78
PEG (NY)40.93
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.83% | ||
| ROE | -64.11% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 57.92% | ||
| 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-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.55 | ||
| Cap/Depr | 18.38% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.15 |
F-Score4
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)-38.71%
EPS 3Y-27.43%
EPS 5Y-12.55%
EPS Q2Q%1.41%
EPS Next Y3.02%
EPS Next 2Y76.85%
EPS Next 3Y56.31%
EPS Next 5Y37.63%
Revenue 1Y (TTM)1%
Revenue growth 3Y16.62%
Revenue growth 5Y14.92%
Sales Q2Q%2.66%
Revenue Next Year6.29%
Revenue Next 2Y25.13%
Revenue Next 3Y16.03%
Revenue Next 5Y12.23%
EBIT growth 1Y50.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year38.69%
EBIT Next 3Y59.58%
EBIT Next 5Y33.85%
FCF growth 1Y-542.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-221.3%
OCF growth 3YN/A
OCF growth 5YN/A