Take-Two Interactive Software Inc

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TTWO : NASDAQ : Technology
$40.32 -0.13 | -0.32%
Today's Range: 40.16 - 40.64
Avg. Daily Volume: 1,625,200
07/28/16 - 3:59 PM ET

Financial Analysis

TAKE-TWO INTERACTIVE SFTWR's gross profit margin for the fourth quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. TAKE-TWO INTERACTIVE SFTWR has average liquidity. Currently, the Quick Ratio is 1.39 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 3.24% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)377.21300.09
EBITDA ($mil)52.03-236.4
EBIT ($mil)44.69-242.35
Net Income ($mil)46.4-242.79

Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)1530.731267.73
Total Assets ($mil)2590.282231.1
Total Debt ($mil)497.94476.06
Equity ($mil)581.39563.09

Profitability Q4 FY15 Q4 FY14
Gross Profit Margin44.47-36.85
EBITDA Margin13.79-78.77
Operating Margin11.85-80.76
Sales Turnover0.550.49
Return on Assets-0.32-12.52
Return on Equity-1.42-49.63
Debt Q4 FY15 Q4 FY14
Current Ratio1.681.84
Interest Expense8.287.93
Interest Coverage5.4-30.56

Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)86.5788.36
Div / share0.00.0
Book value / share6.726.37
Institutional Own % n/a n/a
Avg Daily Volume1657948.01448528.0


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 5.97 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 6.93. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TTWO NM Peers 58.30   TTWO 13.29 Peers 21.62

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.


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TTWO 17.82 Peers 47.03   TTWO NA Peers 0.84

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.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TTWO 5.97 Peers 6.93   TTWO 91.79 Peers -2.42

Discount. 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 discount to 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TTWO 2.46 Peers 5.86   TTWO 30.54 Peers 5.32

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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