Shares of Take-Two Interactive Software (TTWO, Financial) rose significantly, gaining 15.06%. This upward movement was driven by the company's third-quarter earnings report, which exceeded expectations, and was further bolstered by the confirmation of Grand Theft Auto 6's release schedule.
The financial metrics for Take-Two Interactive Software (TTWO, Financial) paint a complex picture. Currently priced at $210.65, TTWO's stock has seen a year-to-date percentage change of 13.95%. The company has a market capitalization of $37.16 billion. Despite this positive movement, Take-Two's GF Value indicates the stock as "Significantly Overvalued" with a GF Value of $142.89. Investors can explore more about the GF Value here. The company's price-to-book ratio stands at 6.38, which is close to its 3-year high, and the price-to-sales ratio is at 5.78.
The company's financial strength is somewhat strained, with an Altman Z-Score of 1.84, indicating financial stress. The Piotroski F-Score is low at 3, suggesting poor business operations. The gross margin has seen a long-term decline, with an average annual decrease of 1.6%. On a positive note, the Beneish M-Score suggests TTWO is unlikely to be a manipulator.
In terms of growth, Take-Two's revenue has increased at a rate of 6.5% over the past five years. However, the company's efficiency may be in question, as asset growth outpaced revenue growth at 42.2% annually. The company's EBITDA has decreased by 565.7% year-over-year, indicating a challenging profit environment.
In conclusion, while Take-Two Interactive Software (TTWO, Financial) is experiencing a favorable stock price movement due to strong earnings and strategic announcements, potential investors should approach with caution given the significant overvaluation and financial metrics that suggest operational challenges.
