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Take-Two Interactive Software Inc TTWO

Morningstar Rating
$151.01 −1.43 (0.94%)
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Company Report

Take-Two Earnings: Shifting Release Dates and Pockets of Weakness Could Create Continued Volatility

Take-Two’s fiscal third-quarter results largely met expectations, but the firm’s outlook for the remainder of fiscal 2024 and fiscal 2025 point to some pockets of weakness amid uncertain timing around new releases. Most critically, management expects fiscal 2025 bookings will come in slightly above $7 billion, down from initial expectations of above $8 billion and revised expectations last quarter of just below $8 billion. The firm stated that the lifetime value of its game portfolio hasn’t changed but expected release dates have shifted out. We may adjust our estimates to reflect weakness in other franchises, which have contributed to the reduced fiscal 2024 outlook, but we don’t expect to significantly change our $165 fair value estimate.

Price vs Fair Value

TTWO is trading at a 8% discount.
Price
$151.01
Fair Value
$983.00
Uncertainty
High
1-Star Price
$556.12
5-Star Price
$74.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Take-Two has established newer large franchises, such as "Borderlands," while revitalizing older ones, such as "Xcom."

Bears

Take-Two is still dependent on "Grand Theft Auto" games; the failure of a sequel would negatively affect the company, given the high production cost.

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News

Trading Information

Previous Close Price
$152.44
Day Range
$150.85153.06
52-Week Range
$107.92171.59
Bid/Ask
$149.00 / $151.16
Market Cap
$25.76 Bil
Volume/Avg
1.5 Mil / 2.0 Mil

Key Statistics

Price/Earnings (Normalized)
76.89
Price/Sales
4.89
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Found in 1993, Take-Two consists of three wholly owned labels, Rockstar Games, 2K, and Zynga. The firm is one of the world's largest independent video game publishers on consoles, PCs, smartphones, and tablets. Take-Two's franchise portfolio is headlined by "Grand Theft Auto" (345 million units sold) and contains other well-known titles such as "NBA 2K," "Civilization," "Borderlands," "Bioshock," and "Xcom." Zynga mobile titles include "Farmville," "Empires & Puzzles," and "CSR Racing.".
Sector
Communication Services
Industry
Electronic Gaming & Multimedia
Stock Style Box
Mid Growth
Total Number of Employees
11,580

Competitors

Valuation

Metric
TTWO
UBI
EA
Price/Earnings (Normalized)
76.8920.87
Price/Book Value
3.121.975.09
Price/Sales
4.891.565.10
Price/Cash Flow
26.7418.72
Price/Earnings
TTWO
UBI
EA

Financial Strength

Metric
TTWO
UBI
EA
Quick Ratio
0.621.501.21
Current Ratio
0.821.511.33
Interest Coverage
−19.85−7.6324.38
Quick Ratio
TTWO
UBI
EA

Profitability

Metric
TTWO
UBI
EA
Return on Assets (Normalized)
−6.34%−5.97%11.78%
Return on Equity (Normalized)
−11.18%−17.79%21.10%
Return on Invested Capital (Normalized)
−7.46%−6.37%16.37%
Return on Assets
TTWO
UBI
EA
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