(TTWO) Take-Two Interactive - Overview
Sector: Communication Services | Industry: Electronic Gaming & Multimedia | Exchange: NASDAQ (USA) | Market Cap: 42.188m USD | Total Return: 0.6% in 12m
Avg Turnover: 418M
EPS Trend: 51.3%
Qual. Beats: 0
Rev. Trend: 83.8%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -2.7 is critical
Altman Z'' -3.55 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Take-Two Interactive Software, Inc. is a global developer and publisher of interactive entertainment, maintaining a portfolio that spans console, PC, and mobile platforms. The company operates through several major labels, including Rockstar Games, 2K, and Zynga, managing high-profile franchises such as Grand Theft Auto, Red Dead Redemption, and the NBA 2K series. Its revenue model relies on a mix of premium software sales, recurrent consumer spending via in-game purchases, and mobile advertising.
The interactive home entertainment sector is characterized by high development costs and long production cycles, often offset by the long-term monetization of established intellectual properties. Take-Two’s 2022 acquisition of Zynga significantly shifted its business model toward the high-growth mobile gaming market and free-to-play mechanics. For deeper insights into these financial trends, ValueRay provides comprehensive data for further study. The company distributes its products through a multi-channel strategy encompassing physical retail, digital storefronts, and cloud streaming services.
- Grand Theft Auto VI release timing remains primary catalyst for long-term revenue growth
- Recurrent consumer spending in NBA 2K and GTA Online drives margin stability
- Zynga mobile integration performance impacts overall portfolio profitability and user acquisition costs
- Development delays or headcount restructuring risks influence near-term earnings per share
- Expansion of intellectual property into film and television creates high-margin licensing opportunities
| Net Income: -298.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 7.13 > 1.0 |
| NWC/Revenue: 9.17% < 20% (prev -14.20%; Δ 23.37% < -1%) |
| CFO/TA 0.07 > 3% & CFO 624.3m > Net Income -298.2m |
| Net Debt (1.41b) to EBITDA (850.5m): 1.66 < 3 |
| Current Ratio: 1.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (185.3m) vs 12m ago 4.81% < -2% |
| Gross Margin: 57.23% > 18% (prev 0.54%; Δ 5.67k% > 0.5%) |
| Asset Turnover: 71.71% > 50% (prev 61.36%; Δ 10.35% > 0%) |
| Interest Coverage Ratio: -2.70 > 6 (EBITDA TTM 850.5m / Interest Expense TTM 48.9m) |
| A: 0.07 (Total Current Assets 3.20b - Total Current Liabilities 2.59b) / Total Assets 9.38b |
| B: -0.78 (Retained Earnings -7.36b / Total Assets 9.38b) |
| C: -0.01 (EBIT TTM -132.0m / Avg Total Assets 9.28b) |
| D: -1.26 (Book Value of Equity -7.42b / Total Liabilities 5.87b) |
| Altman-Z'' = -3.55 = D |
| DSRI: 0.73 (Receivables 737.0m/851.9m, Revenue 6.66b/5.63b) |
| GMI: 0.95 (GM 57.23% / 54.36%) |
| AQI: 0.94 (AQ_t 0.58 / AQ_t-1 0.61) |
| SGI: 1.18 (Revenue 6.66b / 5.63b) |
| TATA: -0.10 (NI -298.2m - CFO 624.3m) / TA 9.38b) |
| Beneish M = -3.30 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 227.55 with a total of 7,045,300 shares traded.
Over the past week, the price has changed by -6.14%,
over one month by +6.45%,
over three months by +9.76% and
over the past year by +0.57%.
Take-Two Interactive has received a consensus analysts rating of 4.41. Therefore, it is recommended to buy TTWO.
- StrongBuy: 17
- Buy: 6
- Hold: 3
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 279.5 | 22.8% |
P/E Forward = 26.738
P/S = 6.3379
P/B = 12.0162
P/EG = 2.6771
Revenue TTM = 6.66b USD
EBIT TTM = -132.0m USD
EBITDA TTM = 850.5m USD
Long Term Debt = 2.49b USD (from longTermDebt, two quarters ago)
Short Term Debt = 100.1m USD (from shortTermDebt, last quarter)
Debt = 3.40b USD (from shortLongTermDebtTotal, last quarter) + Leases 442.1m
Net Debt = 1.41b USD (calculated: Debt 3.40b - CCE 1.99b)
Enterprise Value = 43.6b USD (42.2b + Debt 3.40b - CCE 1.99b)
Interest Coverage Ratio = -2.70 (Ebit TTM -132.0m / Interest Expense TTM 48.9m)
EV/FCF = 96.86x (Enterprise Value 43.6b / FCF TTM 450.1m)
FCF Yield = 1.03% (FCF TTM 450.1m / Enterprise Value 43.6b)
FCF Margin = 6.76% (FCF TTM 450.1m / Revenue TTM 6.66b)
Net Margin = -4.48% (Net Income TTM -298.2m / Revenue TTM 6.66b)
Gross Margin = 57.23% ((Revenue TTM 6.66b - Cost of Revenue TTM 2.85b) / Revenue TTM)
Gross Margin QoQ = 55.88% (prev 55.65%)
Tobins Q-Ratio = 4.65 (Enterprise Value 43.6b / Total Assets 9.38b)
Interest Expense / Debt = 1.44% (Interest Expense 48.9m / Debt 3.40b)
Taxrate = 21.0% (US default 21%)
NOPAT = -104.3m (EBIT -132.0m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.24 (Total Current Assets 3.20b / Total Current Liabilities 2.59b)
Debt / Equity = 0.97 (Debt 3.40b / totalStockholderEquity, last quarter 3.51b)
Debt / EBITDA = 1.66 (Net Debt 1.41b / EBITDA 850.5m)
Debt / FCF = 3.14 (Net Debt 1.41b / FCF TTM 450.1m)
Total Stockholder Equity = 3.48b (last 4 quarters mean from totalStockholderEquity)
RoA = -3.21% (Net Income -298.2m / Total Assets 9.38b)
RoE = -2.75% (Net Income TTM -298.2m / Total Stockholder Equity 10.8b)
RoCE = -0.99% (EBIT -132.0m / Capital Employed (Equity 10.8b + L.T.Debt 2.49b))
RoIC = -1.55% (negative operating profit) (NOPAT -104.3m / Invested Capital 6.74b)
WACC = 8.38% (E(42.2b)/V(45.6b) * Re(8.96%) + D(3.40b)/V(45.6b) * Rd(1.44%) * (1-Tc(0.21)))
Discount Rate = 8.96% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.56 | Cagr: 3.82%
[DCF] Terminal Value 75.35% ; FCFF base≈450.1m ; Y1≈452.0m ; Y5≈478.8m
[DCF] Fair Price = 32.37 (EV 7.41b - Net Debt 1.41b = Equity 6.00b / Shares 185.4m; r=8.38% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: 51.26 | EPS CAGR: 89.17% | SUE: 0.62 | # QB: 0
Revenue Correlation: 83.78 | Revenue CAGR: 7.61% | SUE: -0.44 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.19 | Chg30d=+40.14% | Revisions=-20% | Analysts=8
EPS next Quarter (2026-09-30): EPS=-0.69 | Chg30d=-279.34% | Revisions=+20% | Analysts=8
EPS current Year (2027-03-31): EPS=1.75 | Chg30d=-51.94% | Revisions=-14% | GrowthEPS=+208.2% | GrowthRev=+28.4%
EPS next Year (2028-03-31): EPS=5.79 | Chg30d=-19.06% | Revisions=+0% | GrowthEPS=+230.1% | GrowthRev=+6.4%
[Analyst] Revisions Ratio: -20%