TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis
NASDAQ:TTWO - US8740541094 - Common Stock
240.65 USD
+1.79 (+0.75%)
241.19 USD
+0.54 (+0.22%)
Overall TTWO gets a fundamental rating of 3 out of 10. We evaluated TTWO against 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
TTWO had positive earnings in the past year.
In the past year TTWO had a positive 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
With a Return On Assets value of -43.67%, TTWO is not doing good in the industry: 87.34% of the companies in the same industry are doing better.
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
TTWO has a Gross Margin of 56.66%. This is in the better half of the industry: TTWO outperforms 64.56% 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.
TTWO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TTWO has more shares outstanding
TTWO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.71 indicates that TTWO is not in any danger for bankruptcy at the moment.
TTWO has a better Altman-Z score (3.71) than 77.22% of its industry peers.
TTWO has a Debt/Equity ratio of 0.72. This is a neutral value indicating TTWO is somewhat dependend on debt financing.
TTWO's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. TTWO is outperformed by 60.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.71 |
ROIC/WACCN/A
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.16 indicates that TTWO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, TTWO is in line with its industry, outperforming 54.43% 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.
The Quick ratio of TTWO (1.16) 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.
The earnings per share for TTWO have been decreasing by -13.91% on average. This is quite bad
Looking at the last year, TTWO shows a small growth in Revenue. The Revenue has grown by 7.33% in the last year.
The Revenue has been growing by 12.77% on average over the past years. This is quite good.
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
TTWO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.78% yearly.
EPS Next Y15.25%
EPS Next 2Y92.46%
EPS Next 3Y59.25%
EPS Next 5Y37.63%
Revenue Next Year9.56%
Revenue Next 2Y29.21%
Revenue Next 3Y15.37%
Revenue Next 5Y11.78%
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
With a Price/Earnings ratio of 77.88, TTWO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TTWO is valued a bit cheaper than the industry average as 65.82% 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 27.03.
Based on the Price/Forward Earnings ratio of 25.78, the valuation of TTWO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTWO indicates a somewhat cheap valuation: TTWO is cheaper than 75.95% of the companies listed in the same industry.
TTWO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.88 | ||
| Fwd PE | 25.78 |
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 | 74.22 |
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 59.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.11
PEG (5Y)N/A
EPS Next 2Y92.46%
EPS Next 3Y59.25%
5. Dividend
5.1 Amount
No dividends for TTWO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
240.65
+1.79 (+0.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners94.61%
Inst Owner Change1.77%
Ins Owners1.35%
Ins Owner Change-11.06%
Market Cap44.39B
Analysts83.16
Price Target265.81 (10.46%)
Short Float %4.6%
Short Ratio4.48
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)5.33%
PT rev (3m)14.59%
EPS NQ rev (1m)-20.76%
EPS NQ rev (3m)-30.92%
EPS NY rev (1m)5.02%
EPS NY rev (3m)-58.27%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-6%
Revenue NY rev (1m)2.56%
Revenue NY rev (3m)-21.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.88 | ||
| Fwd PE | 25.78 | ||
| P/S | 7.65 | ||
| P/FCF | N/A | ||
| P/OCF | 439.1 | ||
| P/B | 12.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 74.22 |
EPS(TTM)3.09
EY1.28%
EPS(NY)9.33
Fwd EY3.88%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.55
OCFY0.23%
SpS31.44
BVpS18.87
TBVpS-9.96
PEG (NY)5.11
PEG (5Y)N/A
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
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-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 | 3.71 |
F-Score5
WACC8.48%
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 2Y92.46%
EPS Next 3Y59.25%
EPS Next 5Y37.63%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y17.14%
Revenue growth 5Y12.77%
Sales Q2Q%16.83%
Revenue Next Year9.56%
Revenue Next 2Y29.21%
Revenue Next 3Y15.37%
Revenue Next 5Y11.78%
EBIT growth 1Y-42.38%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.26%
EBIT Next 3Y58.36%
EBIT Next 5Y36.42%
FCF growth 1Y79.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y206.76%
OCF growth 3YN/A
OCF growth 5YN/A