TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis
NASDAQ:TTWO - Nasdaq - US8740541094 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to TTWO. TTWO was compared to 503 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.
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.
In multiple years TTWO reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: TTWO reported negative operating cash flow in multiple years.
1.2 Ratios
TTWO has a worse Return On Assets (-48.79%) than 87.50% of its industry peers.
TTWO's Return On Equity of -209.52% is on the low side compared to the rest of the industry. TTWO is outperformed by 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -48.79% | ||
| ROE | -209.52% | ||
| 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
The Gross Margin of TTWO (58.16%) is better than 66.67% of its industry peers.
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 | 58.16% |
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.
The number of shares outstanding for TTWO has been increased compared to 5 years ago.
Compared to 1 year ago, TTWO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.83 indicates that TTWO is not a great score, but indicates only limited risk for bankruptcy at the moment.
TTWO has a Altman-Z score of 2.83. This is in the better half of the industry: TTWO outperforms 76.39% of its industry peers.
TTWO has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
TTWO's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. TTWO is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.83 |
ROIC/WACCN/A
WACC8.63%
2.3 Liquidity
A Current Ratio of 0.78 indicates that TTWO may have some problems paying its short term obligations.
TTWO has a Current ratio of 0.78. This is comparable to the rest of the industry: TTWO outperforms 43.06% of its industry peers.
TTWO has a Quick Ratio of 0.78. 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 0.78 is in line compared to the rest of the industry. TTWO outperforms 45.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
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.
Looking at the last year, TTWO shows a small growth in Revenue. The Revenue has grown by 5.31% in the last year.
Measured over the past years, TTWO shows a quite strong growth in Revenue. The Revenue has been growing by 12.77% on average per year.
EPS 1Y (TTM)1.61%
EPS 3Y-20.68%
EPS 5Y-13.91%
EPS Q2Q%289.29%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y17.14%
Revenue growth 5Y12.77%
Sales Q2Q%17.25%
3.2 Future
The Earnings Per Share is expected to grow by 45.88% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.12% on average over the next years. This is quite good.
EPS Next Y176.14%
EPS Next 2Y97.7%
EPS Next 3Y60.42%
EPS Next 5Y45.88%
Revenue Next Year6.51%
Revenue Next 2Y27.91%
Revenue Next 3Y15.66%
Revenue Next 5Y14.12%
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
A Price/Earnings ratio of 94.55 indicates a quite expensive valuation of TTWO.
Based on the Price/Earnings ratio, TTWO is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.32. TTWO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.24, which means the current valuation is very expensive for TTWO.
66.67% of the companies in the same industry are more expensive than TTWO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, TTWO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.55 | ||
| Fwd PE | 34.24 |
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 | 69.28 |
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.
A more expensive valuation may be justified as TTWO's earnings are expected to grow with 60.42% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y97.7%
EPS Next 3Y60.42%
5. Dividend
5.1 Amount
TTWO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:TTWO (6/16/2025, 12:40:06 PM)
238.26
+8.03 (+3.49%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners95.31%
Inst Owner Change-45.04%
Ins Owners1.32%
Ins Owner Change-7.34%
Market Cap43.51B
Analysts83.33
Price Target250.43 (5.11%)
Short Float %4.48%
Short Ratio3.28
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)10.74%
Min EPS beat(2)-2.66%
Max EPS beat(2)24.14%
EPS beat(4)3
Avg EPS beat(4)97.01%
Min EPS beat(4)-2.66%
Max EPS beat(4)310.57%
EPS beat(8)5
Avg EPS beat(8)72.54%
EPS beat(12)5
Avg EPS beat(12)45%
EPS beat(16)9
Avg EPS beat(16)36.08%
Revenue beat(2)1
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)0.03%
Revenue beat(4)2
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-4.69%
Max Revenue beat(4)0.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.36%
Revenue beat(12)4
Avg Revenue beat(12)-2.2%
Revenue beat(16)7
Avg Revenue beat(16)-0.55%
PT rev (1m)7.96%
PT rev (3m)12.02%
EPS NQ rev (1m)18.85%
EPS NQ rev (3m)18.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.15%
Revenue NQ rev (1m)4.55%
Revenue NQ rev (3m)4.55%
Revenue NY rev (1m)-23.51%
Revenue NY rev (3m)-27.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.55 | ||
| Fwd PE | 34.24 | ||
| P/S | 7.72 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 20.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 69.28 |
EPS(TTM)2.52
EY1.06%
EPS(NY)6.96
Fwd EY2.92%
FCF(TTM)-1.18
FCFYN/A
OCF(TTM)-0.25
OCFYN/A
SpS30.85
BVpS11.71
TBVpS-17.24
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -48.79% | ||
| ROE | -209.52% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 58.16% | ||
| 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-Score3
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 14.65% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.83 |
F-Score3
WACC8.63%
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)1.61%
EPS 3Y-20.68%
EPS 5Y-13.91%
EPS Q2Q%289.29%
EPS Next Y176.14%
EPS Next 2Y97.7%
EPS Next 3Y60.42%
EPS Next 5Y45.88%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y17.14%
Revenue growth 5Y12.77%
Sales Q2Q%17.25%
Revenue Next Year6.51%
Revenue Next 2Y27.91%
Revenue Next 3Y15.66%
Revenue Next 5Y14.12%
EBIT growth 1Y-13.47%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.78%
EBIT Next 3Y58.92%
EBIT Next 5Y35.16%
FCF growth 1Y-35.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-180.74%
OCF growth 3YN/A
OCF growth 5YN/A