Take-Two Interactive Software Inc
Find Ratings ReportsTAKE-TWO INTERACTIVE SFTWR's gross profit margin for the first quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. 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 increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 106.12% 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 FY17 | Q1 FY16 |
|---|---|---|
| Net Sales ($mil) | 418.22 | 311.55 |
| EBITDA ($mil) | 76.74 | -31.61 |
| EBIT ($mil) | 60.82 | -38.98 |
| Net Income ($mil) | 60.28 | -38.57 |
| Balance Sheet | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 1687.4 | 1507.32 |
| Total Assets ($mil) | 3219.57 | 2538.73 |
| Total Debt ($mil) | 212.86 | 504.39 |
| Equity ($mil) | 1099.76 | 533.54 |
| Profitability | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Gross Profit Margin | 55.43 | 38.57 |
| EBITDA Margin | 18.34 | -10.14 |
| Operating Margin | 14.54 | -12.51 |
| Sales Turnover | 0.59 | 0.57 |
| Return on Assets | 5.16 | 0.79 |
| Return on Equity | 15.1 | 3.77 |
| Debt | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Current Ratio | 1.44 | 1.57 |
| Debt/Capital | 0.16 | 0.49 |
| Interest Expense | 5.96 | 8.37 |
| Interest Coverage | 10.21 | -4.66 |
| Share Data | Q1 FY17 | Q1 FY16 |
|---|---|---|
| Shares outstanding (mil) | 105.84 | 87.41 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.56 | -0.46 |
| Book value / share | 10.39 | 6.1 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2558998.0 | 1630100.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 59.76 for the Software industry and a significant premium compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 8.75 indicates a significant premium versus the S&P 500 average of 3.02 and a premium versus the industry average of 8.60. 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 premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TTWO 60.23 | Peers 59.76 | TTWO 25.30 | Peers 37.05 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. TTWO is trading at a valuation on par with 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 significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| TTWO 21.45 | Peers 34.04 | TTWO 0.30 | Peers 1.12 | |||||||||||||||||||||
|
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 premium to its peers. |
Discount. 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 trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| TTWO 8.75 | Peers 8.60 | TTWO 2416.66 | Peers 89.33 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
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| TTWO 5.10 | Peers 6.93 | TTWO 30.10 | Peers 12.04 | |||||||||||||||||||||
|
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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