TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis
USA - NASDAQ:TTWO - US8740541094 - Common Stock
261.35 USD
+2.12 (+0.82%)
261.35 USD
0 (0%)
Overall TTWO gets a fundamental rating of 3 out of 10. We evaluated TTWO against 80 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
TTWO had positive earnings in the past year.
In the past year TTWO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TTWO reported negative net income in multiple years.
In multiple years TTWO reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TTWO (-43.67%) is worse than 87.50% of its industry peers.
The Return On Equity of TTWO (-121.49%) is worse than 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -43.67% | ||
| ROE | -121.49% | ||
| ROIC | N/A |
ROA(3y)-28.84%
ROA(5y)-14.07%
ROE(3y)-96.01%
ROE(5y)-51.87%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TTWO has a better Gross Margin (56.66%) than 65.00% 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 | 56.66% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.02%
GM growth 5Y3.04%
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
TTWO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.11 indicates that TTWO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.11, TTWO is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that TTWO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, TTWO is doing worse than 61.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.11 |
ROIC/WACCN/A
WACC8.32%
2.3 Liquidity
TTWO has a Current Ratio of 1.16. This is a normal value and indicates that TTWO is financially healthy and should not expect problems in meeting its short term obligations.
TTWO has a Current ratio (1.16) which is comparable to the rest of the industry.
TTWO has a Quick Ratio of 1.16. This is a normal value and indicates that TTWO is financially healthy and should not expect problems in meeting its short term obligations.
TTWO has a Quick ratio of 1.16. This is comparable to the rest of the industry: TTWO outperforms 53.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
TTWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.73%, which is quite impressive.
TTWO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.91% yearly.
TTWO shows a small growth in Revenue. In the last year, the Revenue has grown by 7.33%.
The Revenue has been growing by 12.77% on average over the past years. This is quite good.
EPS 1Y (TTM)36.73%
EPS 3Y-20.68%
EPS 5Y-13.91%
EPS Q2Q%1140%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y17.14%
Revenue growth 5Y12.77%
Sales Q2Q%16.83%
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 37.63% 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 11.90% on average per year.
EPS Next Y15.25%
EPS Next 2Y90.78%
EPS Next 3Y60.73%
EPS Next 5Y37.63%
Revenue Next Year9.65%
Revenue Next 2Y28.95%
Revenue Next 3Y15.26%
Revenue Next 5Y11.9%
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
TTWO is valuated quite expensively with a Price/Earnings ratio of 84.58.
TTWO's Price/Earnings ratio is a bit cheaper when compared to the industry. TTWO is cheaper than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.42, TTWO is valued quite expensively.
The Price/Forward Earnings ratio is 28.49, which means the current valuation is very expensive for TTWO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTWO indicates a somewhat cheap valuation: TTWO is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. TTWO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.58 | ||
| Fwd PE | 28.49 |
4.2 Price Multiples
TTWO's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 81.05 |
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 60.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.55
PEG (5Y)N/A
EPS Next 2Y90.78%
EPS Next 3Y60.73%
5. Dividend
5.1 Amount
No dividends for TTWO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
261.35
+2.12 (+0.82%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners97.35%
Inst Owner Change-0.09%
Ins Owners1.29%
Ins Owner Change-14.4%
Market Cap48.21B
Analysts83.24
Price Target266.39 (1.93%)
Short Float %4.28%
Short Ratio4.51
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)1
Avg EPS beat(2)57.5%
Min EPS beat(2)-2.66%
Max EPS beat(2)117.65%
EPS beat(4)3
Avg EPS beat(4)48.78%
Min EPS beat(4)-2.66%
Max EPS beat(4)117.65%
EPS beat(8)6
Avg EPS beat(8)91.83%
EPS beat(12)6
Avg EPS beat(12)56.06%
EPS beat(16)9
Avg EPS beat(16)42.77%
Revenue beat(2)2
Avg Revenue beat(2)3.2%
Min Revenue beat(2)0.03%
Max Revenue beat(2)6.36%
Revenue beat(4)3
Avg Revenue beat(4)1.12%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)6.36%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)5
Avg Revenue beat(12)-1.62%
Revenue beat(16)7
Avg Revenue beat(16)-1.15%
PT rev (1m)0.22%
PT rev (3m)6.37%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)-16.16%
EPS NY rev (1m)0%
EPS NY rev (3m)5.02%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.58 | ||
| Fwd PE | 28.49 | ||
| P/S | 8.31 | ||
| P/FCF | N/A | ||
| P/OCF | 476.87 | ||
| P/B | 13.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 81.05 |
EPS(TTM)3.09
EY1.18%
EPS(NY)9.17
Fwd EY3.51%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.55
OCFY0.21%
SpS31.44
BVpS18.87
TBVpS-9.96
PEG (NY)5.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -43.67% | ||
| ROE | -121.49% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.66% | ||
| FCFM | N/A |
ROA(3y)-28.84%
ROA(5y)-14.07%
ROE(3y)-96.01%
ROE(5y)-51.87%
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 3Y-0.02%
GM growth 5Y3.04%
F-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.14 | ||
| Cap/Depr | 13.94% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 16.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 4.11 |
F-Score5
WACC8.32%
ROIC/WACCN/A
Cap/Depr(3y)12.77%
Cap/Depr(5y)24.94%
Cap/Sales(3y)3.16%
Cap/Sales(5y)3.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.73%
EPS 3Y-20.68%
EPS 5Y-13.91%
EPS Q2Q%1140%
EPS Next Y15.25%
EPS Next 2Y90.78%
EPS Next 3Y60.73%
EPS Next 5Y37.63%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y17.14%
Revenue growth 5Y12.77%
Sales Q2Q%16.83%
Revenue Next Year9.65%
Revenue Next 2Y28.95%
Revenue Next 3Y15.26%
Revenue Next 5Y11.9%
EBIT growth 1Y-42.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year42.99%
EBIT Next 3Y56.99%
EBIT Next 5Y35.57%
FCF growth 1Y79.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y206.76%
OCF growth 3YN/A
OCF growth 5YN/A