TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis
USA - NASDAQ:TTWO - US8740541094 - Common Stock
255.65 USD
-0.72 (-0.28%)
255.65 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TTWO. TTWO was compared to 79 industry peers in the Entertainment industry. Both the profitability and financial health of TTWO have multiple concerns. While showing a medium growth rate, TTWO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TTWO was profitable.
TTWO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TTWO reported negative net income in multiple 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 (-43.67%) than 87.34% of its industry peers.
TTWO has a Return On Equity of -121.49%. This is in the lower half of the industry: TTWO underperforms 74.68% 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
With a decent Gross Margin value of 56.66%, TTWO is doing good in the industry, outperforming 64.56% of the companies in the same industry.
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 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.
Compared to 1 year ago, TTWO has more shares outstanding
TTWO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TTWO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.03 indicates that TTWO is not in any danger for bankruptcy at the moment.
TTWO has a Altman-Z score of 4.03. This is in the better half of the industry: TTWO outperforms 77.22% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that TTWO is somewhat dependend on debt financing.
TTWO has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: TTWO underperforms 60.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.03 |
ROIC/WACCN/A
WACC8.4%
2.3 Liquidity
A Current Ratio of 1.16 indicates that TTWO should not have too much problems paying its short term obligations.
TTWO has a Current ratio (1.16) which is in line with its industry peers.
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 (1.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.73% over the past year.
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 7.33%.
TTWO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.77% yearly.
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.
TTWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.90% yearly.
EPS Next Y15.61%
EPS Next 2Y91.49%
EPS Next 3Y60.01%
EPS Next 5Y37.63%
Revenue Next Year9.81%
Revenue Next 2Y29.16%
Revenue Next 3Y15.65%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 82.73, the valuation of TTWO can be described as expensive.
62.03% of the companies in the same industry are more expensive than TTWO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TTWO is valued quite expensively.
The Price/Forward Earnings ratio is 27.67, 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 74.68% of the companies listed in the same industry.
TTWO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.73 | ||
| Fwd PE | 27.67 |
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 | 79.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TTWO's earnings are expected to grow with 60.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.3
PEG (5Y)N/A
EPS Next 2Y91.49%
EPS Next 3Y60.01%
5. Dividend
5.1 Amount
TTWO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
255.65
-0.72 (-0.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners97.35%
Inst Owner Change-1.21%
Ins Owners1.29%
Ins Owner Change-14.4%
Market Cap47.16B
Revenue(TTM)5.80B
Net Income(TTM)-4228800000
Analysts83.24
Price Target273.67 (7.05%)
Short Float %4.31%
Short Ratio5.38
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)2.96%
PT rev (3m)8.45%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)-18.09%
EPS NY rev (1m)0.32%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.73 | ||
| Fwd PE | 27.67 | ||
| P/S | 8.13 | ||
| P/FCF | N/A | ||
| P/OCF | 466.47 | ||
| P/B | 13.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 79.54 |
EPS(TTM)3.09
EY1.21%
EPS(NY)9.24
Fwd EY3.61%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.55
OCFY0.21%
SpS31.44
BVpS18.87
TBVpS-9.96
PEG (NY)5.3
PEG (5Y)N/A
Graham Number36.22
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
ROICexgc growth 3YN/A
ROICexgc 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 | 4.03 |
F-Score5
WACC8.4%
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 Y15.61%
EPS Next 2Y91.49%
EPS Next 3Y60.01%
EPS Next 5Y37.63%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y17.14%
Revenue growth 5Y12.77%
Sales Q2Q%16.83%
Revenue Next Year9.81%
Revenue Next 2Y29.16%
Revenue Next 3Y15.65%
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
TAKE-TWO INTERACTIVE SOFTWRE / TTWO FAQ
What is the ChartMill fundamental rating of TAKE-TWO INTERACTIVE SOFTWRE (TTWO) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TTWO.
What is the valuation status of TAKE-TWO INTERACTIVE SOFTWRE (TTWO) stock?
ChartMill assigns a valuation rating of 2 / 10 to TAKE-TWO INTERACTIVE SOFTWRE (TTWO). This can be considered as Overvalued.
Can you provide the profitability details for TAKE-TWO INTERACTIVE SOFTWRE?
TAKE-TWO INTERACTIVE SOFTWRE (TTWO) has a profitability rating of 2 / 10.
Can you provide the financial health for TTWO stock?
The financial health rating of TAKE-TWO INTERACTIVE SOFTWRE (TTWO) is 3 / 10.
Can you provide the expected EPS growth for TTWO stock?
The Earnings per Share (EPS) of TAKE-TWO INTERACTIVE SOFTWRE (TTWO) is expected to grow by 15.61% in the next year.