Take-Two Interactive Software Inc

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TTWO : NASDAQ : Technology
$57.58 up 0.98 | 1.73%
Today's Range: 56.59 - 57.6
Avg. Daily Volume: 1650800.0
03/22/17 - 4:00 PM ET

Financial Analysis


TAKE-TWO INTERACTIVE SFTWR's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. TAKE-TWO INTERACTIVE SFTWR has average liquidity. Currently, the Quick Ratio is 1.10 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 greatly increased by 55.78% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)476.47414.22
EBITDA ($mil)-19.2319.51
EBIT ($mil)-28.0911.98
Net Income ($mil)-29.84-42.41


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1722.491418.77
Total Assets ($mil)3089.12585.01
Total Debt ($mil)258.88491.58
Equity ($mil)820.92526.97


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin35.0137.75
EBITDA Margin-4.034.7
Operating Margin-5.92.89
Sales Turnover0.510.52
Return on Assets0.46-11.5
Return on Equity1.75-56.45
Debt Q3 FY16 Q3 FY15
Current Ratio1.321.45
Debt/Capital0.240.48
Interest Expense7.118.19
Interest Coverage-3.951.46


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)100.887.18
Div / share0.00.0
EPS-0.33-0.51
Book value / share8.146.04
Institutional Own % n/a n/a
Avg Daily Volume1304738.01863926.0

Valuation


HOLD. TAKE-TWO INTERACTIVE SFTWR's P/E ratio indicates a significant premium compared to an average of 56.43 for the Software industry and a significant premium compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 7.18 indicates a significant premium versus the S&P 500 average of 2.98 and a discount versus the industry average of 8.58. 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 731.38 Peers 56.43   TTWO 18.12 Peers 22.32

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.

 

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 discount 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 20.97 Peers 34.27   TTWO NM 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 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 7.18 Peers 8.58   TTWO 102.12 Peers 43.23

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TTWO 3.72 Peers 6.34   TTWO 18.61 Peers 7.65

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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