Take-Two Interactive Software, Inc. [NASDAQ:TTWO]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Take-Two Interactive Software, Inc. [TTWO], the latest average analyst recommendation we can see is from the quarter closing in March. On average, stock market experts give TTWO an Outperform rating. Its stock price has been found in the range of 84.41 to 139.91. This is compared to its latest closing price of $110.29.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Take-Two Interactive Software, Inc. [TTWO] is sitting at 1.67. This is compared to 1 month ago, when its average rating was 1.69.
For the quarter ending in Mar-19 Take-Two Interactive Software, Inc. [TTWO] generated $0.49 billion in sales. That’s 3.57% lower than the average estimate of $0.51 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 1 Aug (In 49 Days).
Fundamental Analysis of Take-Two Interactive Software, Inc. [TTWO]
Now let’s turn to look at profitability: with a current Operating Margin for Take-Two Interactive Software, Inc. [TTWO] sitting at +7.65 and its Gross Margin at +41.25, this company’s Net Margin is now 12.50%. These measurements indicate that Take-Two Interactive Software, Inc. [TTWO] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 11.55, and its Return on Invested Capital has reached 14.90%. Its Return on Equity is 18.92, and its Return on Assets is 8.22. These metrics all suggest that Take-Two Interactive Software, Inc. is doing well at using the money it earns to generate returns.
What about valuation? This company’s Enterprise Value to EBITDA is 22.57. The Enterprise Value to Sales for this firm is now 3.91. Take-Two Interactive Software, Inc. [TTWO] has a Price to Book Ratio of 5.19, a Price to Cash Flow Ratio of 12.89 and P/E Ratio of 37.36. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Take-Two Interactive Software, Inc. [TTWO] earns $545,238 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.29 and its Total Asset Turnover is 0.66. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.41 and its Current Ratio is 1.42. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Take-Two Interactive Software, Inc. [TTWO] has 112.53M shares outstanding, amounting to a total market cap of $12.23B. Its stock price has been found in the range of 84.41 to 139.91. At its current price, it has moved by -22.30% from its 52-week high, and it has moved 28.79% from its 52-week low.
This stock’s Beta value is currently 0.81, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 57.93. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Take-Two Interactive Software, Inc. [TTWO] a Reliable Buy?
Shares of Take-Two Interactive Software, Inc. [TTWO], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.