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 73 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.
TTWO had a negative operating cash flow in the past year.
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.
1.2 Ratios
TTWO's Return On Assets of -48.79% is on the low side compared to the rest of the industry. TTWO is outperformed by 84.93% of its industry peers.
TTWO has a Return On Equity of -209.52%. This is in the lower half of the industry: TTWO underperforms 78.08% 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
TTWO has a better Gross Margin (55.73%) than 63.01% 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 | 55.73% |
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.
The number of shares outstanding for TTWO has been increased compared to 1 year ago.
The number of shares outstanding for TTWO has been increased compared to 5 years ago.
The debt/assets ratio for TTWO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that TTWO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TTWO (2.76) is better than 73.97% 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.
With a Debt to Equity ratio value of 1.18, TTWO is not doing good in the industry: 65.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.76 |
ROIC/WACCN/A
WACC8.45%
2.3 Liquidity
TTWO has a Current 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 has a Current ratio (0.78) which is in line with 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 45.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
TTWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.28%, which is quite impressive.
Measured over the past years, TTWO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.91% on average per year.
TTWO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.31%.
The Revenue has been growing by 12.77% on average over the past years. This is quite good.
EPS 1Y (TTM)36.28%
EPS 3Y-20.68%
EPS 5Y-13.91%
EPS Q2Q%1120%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y17.14%
Revenue growth 5Y12.77%
Sales Q2Q%16.83%
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
TTWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.12% yearly.
EPS Next Y9.74%
EPS Next 2Y93.87%
EPS Next 3Y58.96%
EPS Next 5Y45.88%
Revenue Next Year6.82%
Revenue Next 2Y27.18%
Revenue Next 3Y14.39%
Revenue Next 5Y14.12%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 70.57 indicates a quite expensive valuation of TTWO.
Compared to the rest of the industry, the Price/Earnings ratio of TTWO indicates a somewhat cheap valuation: TTWO is cheaper than 64.38% of the companies listed in the same industry.
TTWO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.48.
Based on the Price/Forward Earnings ratio of 22.95, the valuation of TTWO can be described as rather expensive.
TTWO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTWO is cheaper than 71.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.04. TTWO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.57 | ||
| Fwd PE | 22.95 |
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 | 87.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TTWO's earnings are expected to grow with 58.96% in the coming years.
PEG (NY)7.24
PEG (5Y)N/A
EPS Next 2Y93.87%
EPS Next 3Y58.96%
5. Dividend
5.1 Amount
No dividends for TTWO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
217.37
-9.12 (-4.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners95.31%
Inst Owner Change-0.48%
Ins Owners1.32%
Ins Owner Change-7.05%
Market Cap40.10B
Analysts83.16
Price Target254.23 (16.96%)
Short Float %4.79%
Short Ratio3.93
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)0.77%
PT rev (3m)11.03%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)20.24%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-64.32%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)4.86%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-27.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.57 | ||
| Fwd PE | 22.95 | ||
| P/S | 7.12 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 18.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 87.69 |
EPS(TTM)3.08
EY1.42%
EPS(NY)9.47
Fwd EY4.36%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)-0.25
OCFYN/A
SpS30.54
BVpS11.59
TBVpS-17.07
PEG (NY)7.24
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 | 55.73% | ||
| 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 | 5.01 | ||
| 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 | 2.76 |
F-Score3
WACC8.45%
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)36.28%
EPS 3Y-20.68%
EPS 5Y-13.91%
EPS Q2Q%1120%
EPS Next Y9.74%
EPS Next 2Y93.87%
EPS Next 3Y58.96%
EPS Next 5Y45.88%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y17.14%
Revenue growth 5Y12.77%
Sales Q2Q%16.83%
Revenue Next Year6.82%
Revenue Next 2Y27.18%
Revenue Next 3Y14.39%
Revenue Next 5Y14.12%
EBIT growth 1Y-43.47%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.26%
EBIT Next 3Y58%
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