TAKE-TWO INTERACTIVE SOFTWRE (TTWO) Stock Fundamental Analysis
USA - NASDAQ:TTWO - US8740541094 - Common Stock
256.12 USD
+11.01 (+4.49%)
256 USD
-0.12 (-0.05%)
Overall TTWO gets a fundamental rating of 3 out of 10. We evaluated TTWO against 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.
In the past year TTWO had a positive cash flow from operations.
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 86.25% of the companies in the same industry.
TTWO has a Return On Equity of -121.49%. This is in the lower half of the industry: TTWO underperforms 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 Gross Margin of 56.66%. This is in the better half of the industry: TTWO outperforms 65.00% of its industry peers.
In the last couple of years the Gross Margin of TTWO has grown nicely.
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.
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
An Altman-Z score of 3.82 indicates that TTWO is not in any danger for bankruptcy at the moment.
TTWO has a better Altman-Z score (3.82) than 77.50% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that TTWO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, TTWO is doing worse than 61.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.82 |
ROIC/WACCN/A
WACC8.46%
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 53.75% 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.
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.
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
The Revenue is expected to grow by 11.78% on average over the next years. This is quite good.
EPS Next Y15.25%
EPS Next 2Y92.46%
EPS Next 3Y60.38%
EPS Next 5Y37.63%
Revenue Next Year9.56%
Revenue Next 2Y29.04%
Revenue Next 3Y15.58%
Revenue Next 5Y11.78%
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
Based on the Price/Earnings ratio of 82.89, the valuation of TTWO can be described as expensive.
TTWO's Price/Earnings ratio is a bit cheaper when compared to the industry. TTWO is cheaper than 66.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of TTWO to the average of the S&P500 Index (27.32), we can say TTWO is valued expensively.
Based on the Price/Forward Earnings ratio of 27.44, the valuation of TTWO can be described as expensive.
Based on the Price/Forward Earnings ratio, TTWO is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.89. TTWO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.89 | ||
| Fwd PE | 27.44 |
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 | 76.12 |
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 60.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.44
PEG (5Y)N/A
EPS Next 2Y92.46%
EPS Next 3Y60.38%
5. Dividend
5.1 Amount
TTWO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
256.12
+11.01 (+4.49%)
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-15.25%
Market Cap47.25B
Analysts83.16
Price Target265.81 (3.78%)
Short Float %4.22%
Short Ratio4.61
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)4.55%
PT rev (3m)6.14%
EPS NQ rev (1m)-4.06%
EPS NQ rev (3m)-16.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-58.27%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.89 | ||
| Fwd PE | 27.44 | ||
| P/S | 8.15 | ||
| P/FCF | N/A | ||
| P/OCF | 467.32 | ||
| P/B | 13.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 76.12 |
EPS(TTM)3.09
EY1.21%
EPS(NY)9.33
Fwd EY3.64%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.55
OCFY0.21%
SpS31.44
BVpS18.87
TBVpS-9.96
PEG (NY)5.44
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 | 3.82 |
F-Score5
WACC8.46%
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 3Y60.38%
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 2Y29.04%
Revenue Next 3Y15.58%
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