Take-Two Interactive Software -- The Essentials

Now trading at a price of $152.56, Take-Two Interactive Software has moved -1.8% so far today.

Take-Two Interactive Software returned gains of 51.4% last year, with its stock price reaching a high of $161.6 and a low of $97.21. Over the same period, the stock outperformed the S&P 500 index by 36.0%. More recently, the company's 50-day average price was $146.0. Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. Based in New York, NY, the large-cap Technology company has 11,580 full time employees. Take-Two Interactive Software has not offered a dividend during the last year.

Increasing Revenues but Narrowing Margins:

2018 2019 2020 2021 2022 2023
Revenue (MM) $1,793 $2,668 $3,089 $3,373 $3,505 $5,350
Revenue Growth n/a 48.83% 15.76% 9.19% 3.91% 52.64%
Operating Margins 8% 9% 15% 20% 14% -22%
Net Margins 10% 13% 13% 17% 12% -21%
Net Income (MM) $174 $334 $404 $589 $418 -$1,125
Net Interest Expense (MM) $1 $26 $39 $9 -$14 -$142
Depreciation & Amort. (MM) $44 $40 $48 $56 $61 $122
Earnings Per Share $1.54 $2.9 $3.54 $5.09 $3.58 -$7.029999999999999
EPS Growth n/a 88.31% 22.07% 43.79% -29.67% -296.37%
Free Cash Flow (MM) $432 $777 $632 $843 $99 -$203
Capital Expenditures (MM) $62 $67 $53 $69 $159 $204
Current Ratio 1.42 1.64 1.78 1.79 0.87 0.85

Take-Two Interactive Software has weak operating margins with a negative growth trend, declining EPS growth, and irregular cash flows. On the other hand, the company benefits from growing revenues and increasing reinvestment in the business and healthy debt levels.

Take-Two Interactive Software does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $7.26, the company has a forward P/E ratio of 20.1. In comparison, the average P/E ratio for the Technology sector is 35.0. On the other hand, the market is undervaluing Take-Two Interactive Software in terms of its equity because its P/B ratio is 3.08. In comparison, the sector average is 7.92.

There's an Analyst Consensus of Some Upside Potential for Take-Two Interactive Software:

The 25 analysts following Take-Two Interactive Software have set target prices ranging from $104.0 to $175.0 per share, for an average of $162.2 with a buy rating. As of April 2023, the company is trading -10.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Take-Two Interactive Software has an average amount of shares sold short because 3.0% of the company's shares are sold short. Institutions own 94.8% of the company's shares, and the insider ownership rate stands at 1.4%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $2,823,147,622.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.