TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis
USA - NASDAQ:TTWO - US8740541094 - Common Stock
255.12 USD
+0.59 (+0.23%)
254.8 USD
-0.32 (-0.13%)
Taking everything into account, TTWO scores 3 out of 10 in our fundamental rating. TTWO was compared to 80 industry peers in the Entertainment industry. TTWO has a bad profitability rating. Also its financial health evaluation is rather negative. 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 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.
In multiple years TTWO reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -43.67%, TTWO is doing worse than 87.50% of the companies in the same industry.
TTWO has a worse Return On Equity (-121.49%) 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.
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 | 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.
The number of shares outstanding for TTWO has been increased compared to 1 year ago.
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
TTWO has an Altman-Z score of 3.99. This indicates that TTWO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.99, TTWO is doing good in the industry, outperforming 76.25% of the companies in the same industry.
TTWO has a Debt/Equity ratio of 0.72. This is a neutral value indicating TTWO is somewhat dependend on debt financing.
TTWO has a worse Debt to Equity ratio (0.72) than 61.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.99 |
ROIC/WACCN/A
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.16 indicates that TTWO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.16, TTWO perfoms like the industry average, outperforming 52.50% of the companies in the same 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.
With a Quick ratio value of 1.16, TTWO perfoms like the industry average, outperforming 53.75% of the companies in the same industry.
| 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.
The earnings per share for TTWO have been decreasing by -13.91% on average. This is quite bad
The Revenue has been growing slightly by 7.33% in the past year.
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
The Earnings Per Share is expected to grow by 37.63% on average over the next years. This is a very strong growth
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
The Price/Earnings ratio is 82.56, which means the current valuation is very expensive for TTWO.
Based on the Price/Earnings ratio, TTWO is valued a bit cheaper than the industry average as 63.75% of the companies are valued more expensively.
TTWO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.91.
The Price/Forward Earnings ratio is 27.81, which means the current valuation is very expensive for TTWO.
75.00% of the companies in the same industry are more expensive than TTWO, based on the Price/Forward Earnings ratio.
TTWO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.56 | ||
| Fwd PE | 27.81 |
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 | 78.98 |
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)5.41
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 |
255.12
+0.59 (+0.23%)
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 Cap47.06B
Revenue(TTM)5.80B
Net Income(TTM)-4228800000
Analysts83.24
Price Target266.39 (4.42%)
Short Float %4.7%
Short Ratio5.87
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 | 82.56 | ||
| Fwd PE | 27.81 | ||
| P/S | 8.12 | ||
| P/FCF | N/A | ||
| P/OCF | 465.5 | ||
| P/B | 13.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 78.98 |
EPS(TTM)3.09
EY1.21%
EPS(NY)9.17
Fwd EY3.6%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.55
OCFY0.21%
SpS31.44
BVpS18.87
TBVpS-9.96
PEG (NY)5.41
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 | 3.99 |
F-Score5
WACC8.31%
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
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 15.25% in the next year.