TakeTwo Interactive Software, based in New York City, develops and publishes interactive games through brands like Rockstar Games and Zynga, employing 12,371 people. Their products are available on various gaming platforms and delivery methods.
Based on our analysis, Take-Two Interactive Software has received an overvalued rating of 2 out of 5 stars from Cashu. This assessment stems from several concerning financial ratios that indicate the company is underperforming compared to its sector.
Firstly, the net profit margin for Take-Two stands at -79.50%, significantly lower than the sector average of -15.28%. The net profit margin measures how much profit a company makes for every dollar of revenue. A negative margin suggests that the company is not only failing to generate profit but is also incurring substantial losses, which raises concerns about its operational efficiency.
Additionally, the return on equity (ROE) for Take-Two is a staggering -209.52%, compared to the sector's -25.52%. ROE measures how effectively a company uses shareholders' equity to generate profit. A negative ROE indicates that the company is losing more money than it is earning, which can be alarming for investors seeking returns on their investments.
Moreover, the return on assets (ROA) for Take-Two is -48.79%, while the sector average is -13.19%. ROA assesses how efficiently a company utilizes its assets to produce profit. A negative ROA suggests that Take-Two is not leveraging its assets effectively, further compounding concerns about its financial health.
These financial metrics indicate that Take-Two Interactive Software may be overvalued in the current market conditions, with performance well below industry standards.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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