Take-Two Interactive Software Inc

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TTWO : NASDAQ : Technology
$48.96 up 0.96 | 2.0%
Today's Range: 48.0 - 49.02
Avg. Daily Volume: 1918900.0
12/07/16 - 3:34 PM ET

Financial Analysis


TAKE-TWO INTERACTIVE SFTWR's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. TAKE-TWO INTERACTIVE SFTWR has average liquidity. Currently, the Quick Ratio is 1.12 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.31% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)420.17346.97
EBITDA ($mil)54.6973.91
EBIT ($mil)47.1966.43
Net Income ($mil)36.4354.74


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)1542.71279.9
Total Assets ($mil)2979.082416.5
Total Debt ($mil)511.64487.6
Equity ($mil)582.75564.07


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin51.0758.55
EBITDA Margin13.0121.3
Operating Margin11.2319.15
Sales Turnover0.510.6
Return on Assets0.06-8.89
Return on Equity0.31-38.11
Debt Q2 FY16 Q2 FY15
Current Ratio1.381.62
Debt/Capital0.470.46
Interest Expense9.158.1
Interest Coverage5.168.2


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)87.3786.97
Div / share0.00.0
EPS0.390.55
Book value / share6.676.49
Institutional Own % n/a n/a
Avg Daily Volume1913783.01463124.0

Valuation


BUY. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 7.29 indicates a significant premium versus the S&P 500 average of 2.79 and a discount versus the industry average of 7.91. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, TAKE-TWO INTERACTIVE SFTWR proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TTWO NM Peers 50.33   TTWO 22.04 Peers 21.89

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

TTWO's P/E is negative making this valuation measure meaningless.

 

Average. 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 valuation on par 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 21.21 Peers 29.47   TTWO NA Peers 0.79

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TTWO is trading at a significant premium 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TTWO 7.29 Peers 7.91   TTWO 96.47 Peers 25.88

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 2.79 Peers 5.76   TTWO 4.79 Peers 4.98

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

TTWO is keeping pace with its peers on the basis of sales growth.

 

 

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