Logo image of TTWO

TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis

NASDAQ:TTWO - Nasdaq - US8740541094 - Common Stock - Currency: USD

226.76  -10.74 (-4.52%)

After market: 226.7 -0.06 (-0.03%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TTWO. TTWO was compared to 71 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.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

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.
In multiple years TTWO reported negative operating cash flow during the last 5 years.
TTWO Yearly Net Income VS EBIT VS OCF VS FCFTTWO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -1B -2B -3B

1.2 Ratios

With a Return On Assets value of -28.83%, TTWO is not doing good in the industry: 78.87% of the companies in the same industry are doing better.
With a Return On Equity value of -64.11%, TTWO is not doing good in the industry: 67.61% of the companies in the same industry are doing better.
Industry RankSector 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
TTWO Yearly ROA, ROE, ROICTTWO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60

1.3 Margins

TTWO has a Gross Margin of 57.92%. This is in the better half of the industry: TTWO outperforms 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 RankSector 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%
TTWO Yearly Profit, Operating, Gross MarginsTTWO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

More info and screens

3

2. Health

2.1 Basic Checks

TTWO does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for TTWO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TTWO Yearly Shares OutstandingTTWO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
TTWO Yearly Total Debt VS Total AssetsTTWO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

An Altman-Z score of 3.48 indicates that TTWO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.48, TTWO belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that TTWO is somewhat dependend on debt financing.
TTWO has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: TTWO outperforms 50.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF N/A
Altman-Z 3.48
ROIC/WACCN/A
WACC8.72%
TTWO Yearly LT Debt VS Equity VS FCFTTWO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 0.83 indicates that TTWO may have some problems paying its short term obligations.
The Current ratio of TTWO (0.83) is comparable to the rest of the industry.
TTWO has a Quick Ratio of 0.83. 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 0.83 is in line compared to the rest of the industry. TTWO outperforms 47.89% of its industry peers.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.83
TTWO Yearly Current Assets VS Current LiabilitesTTWO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

More info and screens

4

3. Growth

3.1 Past

TTWO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.61%.
TTWO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.91% yearly.
EPS 1Y (TTM)1.61%
EPS 3Y-20.68%
EPS 5Y-13.91%
EPS Q2Q%289.29%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%17.25%

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 54.54% on average per year.
TTWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.14% yearly.
EPS Next Y176.14%
EPS Next 2Y97.7%
EPS Next 3Y54.54%
EPS Next 5YN/A
Revenue Next Year39.24%
Revenue Next 2Y25.27%
Revenue Next 3Y13.79%
Revenue Next 5Y12.14%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
TTWO Yearly Revenue VS EstimatesTTWO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B 10B
TTWO Yearly EPS VS EstimatesTTWO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

TTWO is valuated quite expensively with a Price/Earnings ratio of 89.98.
Based on the Price/Earnings ratio, TTWO is valued a bit cheaper than 69.01% 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 26.60.
The Price/Forward Earnings ratio is 32.59, which means the current valuation is very expensive for TTWO.
70.42% 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 22.43. TTWO is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 89.98
Fwd PE 32.59
TTWO Price Earnings VS Forward Price EarningsTTWO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TTWO.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 123.99
TTWO Per share dataTTWO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

4.3 Compensation for Growth

TTWO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TTWO's earnings are expected to grow with 54.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y97.7%
EPS Next 3Y54.54%

More info and screens

0

5. Dividend

5.1 Amount

TTWO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

TAKE-TWO INTERACTIVE SOFTWRE

NASDAQ:TTWO (5/21/2025, 4:06:39 PM)

After market: 226.7 -0.06 (-0.03%)

226.76

-10.74 (-4.52%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)05-15 2025-05-15/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners98.68%
Inst Owner Change-44.7%
Ins Owners1.42%
Ins Owner Change-2.37%
Market Cap40.02B
Analysts83.33
Price Target231.96 (2.29%)
Short Float %4.72%
Short Ratio3.93
Dividend
Industry RankSector 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)2.73%
PT rev (3m)12.36%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)1.09%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 89.98
Fwd PE 32.59
P/S 7.34
P/FCF N/A
P/OCF N/A
P/B 7.02
P/tB N/A
EV/EBITDA 123.99
EPS(TTM)2.52
EY1.11%
EPS(NY)6.96
Fwd EY3.07%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-1.89
OCFYN/A
SpS30.88
BVpS32.31
TBVpS-19.78
PEG (NY)0.51
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 3.48
F-Score4
WACC8.72%
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)1.61%
EPS 3Y-20.68%
EPS 5Y-13.91%
EPS Q2Q%289.29%
EPS Next Y176.14%
EPS Next 2Y97.7%
EPS Next 3Y54.54%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%17.25%
Revenue Next Year39.24%
Revenue Next 2Y25.27%
Revenue Next 3Y13.79%
Revenue Next 5Y12.14%
EBIT growth 1Y50.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year38.49%
EBIT Next 3Y59.76%
EBIT Next 5Y32.73%
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