Take-Two Interactive Software Inc

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TTWO : NASDAQ : Technology
$42.24 | %
Today's Range: 41.87 - 42.69
Avg. Daily Volume: 1,438,500
08/26/16 - 4:00 PM ET

Financial Analysis


TAKE-TWO INTERACTIVE SFTWR's gross profit margin for the first quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. TAKE-TWO INTERACTIVE SFTWR has average liquidity. Currently, the Quick Ratio is 1.31 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.27% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)311.55275.3
EBITDA ($mil)-31.61-54.8
EBIT ($mil)-38.98-61.41
Net Income ($mil)-38.57-67.02


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1507.321420.79
Total Assets ($mil)2538.732352.6
Total Debt ($mil)504.39481.78
Equity ($mil)533.54526.84


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin38.5726.41
EBITDA Margin-10.14-19.9
Operating Margin-12.51-22.31
Sales Turnover0.570.52
Return on Assets0.79-13.22
Return on Equity3.77-59.04
Debt Q1 FY16 Q1 FY15
Current Ratio1.571.72
Debt/Capital0.490.48
Interest Expense8.378.02
Interest Coverage-4.66-7.66


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)87.4188.33
Div / share0.00.0
EPS-0.46-0.81
Book value / share6.15.96
Institutional Own % n/a n/a
Avg Daily Volume1504100.01374074.0

Valuation


HOLD. TAKE-TWO INTERACTIVE SFTWR's P/E ratio indicates a significant premium compared to an average of 59.15 for the Software industry and a significant premium compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 6.73 indicates a significant premium versus the S&P 500 average of 2.83 and a discount versus the industry average of 7.44. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TTWO 684.83 Peers 59.15   TTWO 32.01 Peers 22.50

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

TTWO is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TTWO is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TTWO 18.26 Peers 49.38   TTWO NM Peers 0.82

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TTWO is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TTWO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TTWO 6.73 Peers 7.44   TTWO 101.54 Peers 18.23

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TTWO is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

TTWO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TTWO 2.48 Peers 5.86   TTWO 17.61 Peers 5.40

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TTWO is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

TTWO has a sales growth rate that significantly exceeds its peers.

 

 

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