Take-Two Interactive Software Inc.
Find Ratings Reports
-1.73 |
-1.69%
TAKE-TWO INTERACTIVE SFTWR's gross profit margin for the third quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. TAKE-TWO INTERACTIVE SFTWR has average liquidity. Currently, the Quick Ratio is 1.02 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 greatly increased by 70.64% 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 FY17 | Q3 FY16 |
|---|---|---|
| Net Sales ($mil) | 480.84 | 476.47 |
| EBITDA ($mil) | 26.6 | -19.23 |
| EBIT ($mil) | 9.55 | -28.09 |
| Net Income ($mil) | 25.14 | -29.84 |
| Balance Sheet | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 1696.59 | 1722.49 |
| Total Assets ($mil) | 3682.61 | 3089.1 |
| Total Debt ($mil) | 13.84 | 258.88 |
| Equity ($mil) | 1400.82 | 820.92 |
| Profitability | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Gross Profit Margin | 46.18 | 35.01 |
| EBITDA Margin | 5.53 | -4.03 |
| Operating Margin | 1.99 | -5.9 |
| Sales Turnover | 0.52 | 0.51 |
| Return on Assets | 4.94 | 0.46 |
| Return on Equity | 12.98 | 1.75 |
| Debt | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Current Ratio | 1.18 | 1.32 |
| Debt/Capital | 0.01 | 0.24 |
| Interest Expense | 1.61 | 7.11 |
| Interest Coverage | 5.94 | -3.95 |
| Share Data | Q3 FY17 | Q3 FY16 |
|---|---|---|
| Shares outstanding (mil) | 114.33 | 100.8 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.21 | -0.33 |
| Book value / share | 12.25 | 8.14 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2925716.0 | 2050390.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 128.53 for the Software industry and a significant premium compared to the S&P 500 average of 24.25. To use another comparison, its price-to-book ratio of 7.99 indicates a significant premium versus the S&P 500 average of 3.15 and a significant discount versus the industry average of 10.09. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, TAKE-TWO INTERACTIVE SFTWR proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TTWO 60.02 | Peers 128.53 | TTWO 37.09 | Peers 528.82 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TTWO is trading at a significant discount 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 significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| TTWO 20.73 | Peers 51.38 | TTWO 0.17 | Peers 1.54 | |||||||||||||||||||||
|
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. |
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 7.99 | Peers 10.09 | TTWO 1937.50 | Peers -13.10 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| TTWO 5.84 | Peers 7.74 | TTWO 20.73 | Peers 14.78 | |||||||||||||||||||||
|
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 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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