TAKE-TWO INTERACTIVE SOFTWRE (TTWO)
US8740541094 - Common Stock
Overall TTWO gets a fundamental rating of 3 out of 10. We evaluated TTWO against 76 industry peers in the Entertainment industry. Both the profitability and financial health of TTWO have multiple concerns. TTWO is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years TTWO 4 years were profitable.
Each year in the past 5 years TTWO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TTWO (-9.74%) is worse than 60.53% of its industry peers.
Looking at the Return On Equity, with a value of -17.06%, TTWO is in line with its industry, outperforming 53.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.74% | ||
| ROE | -17.06% | ||
| ROIC | N/A |
ROA(3y)3.02%
ROA(5y)5.02%
ROE(3y)5.4%
ROE(5y)9.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of TTWO (43.45%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TTWO has declined.
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 | 43.45% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.07%
GM growth 5Y-2.4%
2. Health
2.1 Basic Checks
TTWO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, TTWO has more shares outstanding
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
TTWO has an Altman-Z score of 2.41. This is not the best score and indicates that TTWO is in the grey zone with still only limited risk for bankruptcy at the moment.
TTWO has a better Altman-Z score (2.41) than 80.26% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that TTWO is not too dependend on debt financing.
TTWO has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.41 |
ROIC/WACCN/A
WACC8.99%
2.3 Liquidity
TTWO has a Current Ratio of 0.82. 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 Current ratio of 0.82 is in line compared to the rest of the industry. TTWO outperforms 42.11% of its industry peers.
A Quick Ratio of 0.82 indicates that TTWO may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, TTWO perfoms like the industry average, outperforming 43.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
TTWO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.08%.
The Earnings Per Share has been decreasing by -0.40% on average over the past years.
TTWO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.64%.
TTWO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.44% yearly.
EPS 1Y (TTM)-30.08%
EPS 3Y-13.16%
EPS 5Y-0.4%
EPS growth Q2Q-17.44%
Revenue 1Y (TTM)11.64%
Revenue growth 3Y20.09%
Revenue growth 5Y24.44%
Revenue growth Q2Q-2.95%
3.2 Future
Based on estimates for the next years, TTWO will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.84% 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 9.40% on average per year.
EPS Next Y-32.59%
EPS Next 2Y32.45%
EPS Next 3Y38.88%
EPS Next 5Y18.84%
Revenue Next Year1.28%
Revenue Next 2Y15.52%
Revenue Next 3Y15.9%
Revenue Next 5Y9.4%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.16, the valuation of TTWO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TTWO indicates a somewhat cheap valuation: TTWO is cheaper than 69.74% of the companies listed in the same industry.
TTWO is valuated expensively when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
TTWO is valuated rather expensively with a Price/Forward Earnings ratio of 23.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTWO indicates a somewhat cheap valuation: TTWO is cheaper than 78.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.92. TTWO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.16 | ||
| Fwd PE | 23.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TTWO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 29.12 |
4.3 Compensation for Growth
TTWO's earnings are expected to grow with 38.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.45%
EPS Next 3Y38.88%
5. Dividend
5.1 Amount
No dividends for TTWO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TAKE-TWO INTERACTIVE SOFTWRE
NASDAQ:TTWO (5/1/2024, 5:30:49 PM)
After market: 142.74 0 (0%)142.74
-0.07 (-0.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
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EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.16 | ||
| Fwd PE | 23.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.74% | ||
| ROE | -17.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 43.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-30.08%
EPS 3Y-13.16%
EPS 5Y
EPS growth Q2Q
EPS Next Y-32.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.64%
Revenue growth 3Y20.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y