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TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis

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

235.99  +2.67 (+1.14%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TTWO. TTWO was compared to 72 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.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

TTWO had positive earnings in the past year.
In the past year TTWO has reported a negative cash flow from operations.
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.
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

TTWO has a Return On Assets of -28.83%. This is in the lower half of the industry: TTWO underperforms 79.17% of its industry peers.
TTWO has a Return On Equity of -64.11%. This is in the lower half of the industry: TTWO underperforms 65.28% of its industry peers.
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

The Gross Margin of TTWO (57.92%) is better than 65.28% of its industry peers.
TTWO's Gross Margin has improved in the last couple of years.
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

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3

2. Health

2.1 Basic Checks

TTWO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for TTWO has been increased compared to 1 year ago.
TTWO has more shares outstanding than it did 5 years ago.
TTWO has a worse debt/assets ratio than last year.
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

TTWO has an Altman-Z score of 3.42. This indicates that TTWO is financially healthy and has little risk of bankruptcy at the moment.
TTWO's Altman-Z score of 3.42 is amongst the best of the industry. TTWO outperforms 81.94% of its industry peers.
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 52.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF N/A
Altman-Z 3.42
ROIC/WACCN/A
WACC8.46%
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

TTWO has a Current 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 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's Quick ratio of 0.83 is in line compared to the rest of the industry. TTWO outperforms 48.61% 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

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5

3. Growth

3.1 Past

The earnings per share for TTWO have decreased strongly by -38.71% in the last year.
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 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 39.16% on average over the next years. This is a very strong growth
Based on estimates for the next years, TTWO will show a quite strong growth in Revenue. The Revenue will grow by 11.97% on average per year.
EPS Next Y3.29%
EPS Next 2Y76.79%
EPS Next 3Y56.19%
EPS Next 5Y39.16%
Revenue Next Year6.25%
Revenue Next 2Y25.19%
Revenue Next 3Y16.61%
Revenue Next 5Y11.97%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same 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

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 138.01, TTWO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TTWO is valued a bit cheaper than 65.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.88. TTWO is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 30.45 indicates a quite expensive valuation of TTWO.
TTWO's Price/Forward Earnings ratio is rather cheap when compared to the industry. TTWO is cheaper than 80.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TTWO to the average of the S&P500 Index (21.20), we can say TTWO is valued slightly more expensively.
Industry RankSector Rank
PE 138.01
Fwd PE 30.45
TTWO Price Earnings VS Forward Price EarningsTTWO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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 121.93
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

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.
TTWO's earnings are expected to grow with 56.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)41.89
PEG (5Y)N/A
EPS Next 2Y76.79%
EPS Next 3Y56.19%

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0

5. Dividend

5.1 Amount

No dividends for TTWO!.
Industry RankSector Rank
Dividend Yield N/A

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TAKE-TWO INTERACTIVE SOFTWRE

NASDAQ:TTWO (5/1/2025, 10:56:43 AM)

235.99

+2.67 (+1.14%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)05-15 2025-05-15/amc
Inst Owners98.68%
Inst Owner Change0.39%
Ins Owners1.42%
Ins Owner Change-6%
Market Cap41.65B
Analysts83.43
Price Target227.29 (-3.69%)
Short Float %4.66%
Short Ratio4.42
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)1.67%
PT rev (3m)13.67%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-11.06%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 138.01
Fwd PE 30.45
P/S 7.64
P/FCF N/A
P/OCF N/A
P/B 7.3
P/tB N/A
EV/EBITDA 121.93
EPS(TTM)1.71
EY0.72%
EPS(NY)7.75
Fwd EY3.28%
FCF(TTM)-2.8
FCFYN/A
OCF(TTM)-1.89
OCFYN/A
SpS30.88
BVpS32.31
TBVpS-19.78
PEG (NY)41.89
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 3.42
F-Score4
WACC8.46%
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 Y3.29%
EPS Next 2Y76.79%
EPS Next 3Y56.19%
EPS Next 5Y39.16%
Revenue 1Y (TTM)1%
Revenue growth 3Y16.62%
Revenue growth 5Y14.92%
Sales Q2Q%2.66%
Revenue Next Year6.25%
Revenue Next 2Y25.19%
Revenue Next 3Y16.61%
Revenue Next 5Y11.97%
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