TTWO GoodMoat Verdict
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Take-Two Interactive Software Inc
Exchange: NASDAQSector: Communication ServicesIndustry: Electronic Gaming & Multimedia
NBA Take-Two Media (NBAT2) is the next chapter in the long-standing partnership between the NBA and Take-Two Interactive Software. The place where basketball and culture collide, NBAT2 is a modern entertainment company that will bring fans and players together through competitive gaming, social-first content, original programming and live events. Created to celebrate basketball's unique role in culture, NBAT2 will produce stories and experiences across gaming, travel, music, fashion, food and more in partnership with tastemakers, athletes, creators and fans. The company is headquartered in Brooklyn, New York. About the NBA The National Basketball Association (NBA) is a global sports and media organization with the mission to inspire and connect people everywhere through the power of basketball. Built around five professional sports leagues: the NBA, WNBA, NBA G League, NBA 2K League and Basketball Africa League, the NBA has established a major international presence with games and programming available in 214 countries and territories in more than 50 languages, and merchandise for sale in more than 200 countries and territories on all seven continents. NBA rosters at the start of the 2025-26 season featured a record 135 international players from a record-tying 43 countries. The NBA's digital assets include NBA TV, NBA.com, the NBA App and NBA League Pass. The NBA has created one of the largest social media communities in the world, with more than 2.5 billion likes and followers globally across all leagues, team and player platforms. NBA Cares, the NBA's global social impact platform celebrating its 20 th year, drives change on issues facing fans and communities in the areas of health and wellness, civic engagement, social justice and inclusion, and sustainability. About the NBPA The National Basketball Players Association (NBPA) is the union for current professional basketball players in the National Basketball Association (NBA). Established in 1954, the NBPA's mission is to protect and advance the rights of our players. They are the game. The NBPA advocates on behalf of the best interests of all NBA players, including negotiating collective bargaining agreements, filing grievances on behalf of the players, counseling players on benefits, and educating on post-NBA career opportunities. Business opportunities are generated by THINK450, the group licensing and partnership engine of the NBPA. With more than 80 active partnerships, THINK450 is dedicated to uncovering shared interests between players and leading brands to build more engaging collaborations. The NBPA Foundation is dedicated to preserving the legacy of its members by supporting and assisting people, communities, and organizations worldwide. It spotlights and amplifies the global initiatives of professional basketball players, driving positive change through community building, charitable endeavors, and social entrepreneurship.
Did you know?
Price sits at 49% of its 52-week range.
Current Price
$225.18
+4.24%GoodMoat Value
$102.51
54.5% overvaluedProfile
Valuation (TTM)
Market Cap$41.61B
P/E-10.49
EV$38.17B
P/B19.46
Shares Out184.78M
P/Sales6.34
Revenue$6.56B
EV/EBITDA—
Take-Two Interactive Software Inc (TTWO) Quality Analysis
GoodMoat Analysis
Take-Two Interactive's current quality profile is unfavourable for a value investor, as it fails the fundamental profitability and financial health checks. While it possesses a strong competitive moat through its iconic franchises, the business is deeply unprofitable with negative cash flow and a leveraged balance sheet.
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Applying the GoodMoat Quality Indicators, Take-Two Interactive presents a weak financial profile. The company is not GAAP profitable, with a negative EPS of -$25.58 and deeply negative operating and profit margins of -77.9% and -60.4%, respectively. This results in a severely negative Return on Equity of -185.5%. Free Cash Flow is also negative, with a -0.6% yield, failing the framework's requirement for positive, growing FCF. The balance sheet is a concern, with a Debt/Equity ratio of 1.92, indicating leverage rather than the substantial net cash position preferred. The only positive quality signal is the strong 24.9% YoY revenue growth. From a moat perspective, Take-Two scores well, likely meeting criteria such as Brand & Culture (Rockstar Games, Grand Theft Auto, NBA 2K) and Niche Dominance in premium open-world and sports gaming. However, per the Decision Framework, a business must first pass the Moat & Quality Gate. The presence of multiple 'Weak' quality ratings—specifically on profitability, cash flow, and balance sheet—means the analysis does not proceed further. Compared to profitable peers, Take-Two's quality metrics are currently an outlier due to its heavy investment cycle ahead of major game releases. The key question for a value investor is if and when these investments will translate into the high, sustainable returns indicative of its underlying moat strength. Analysis based on data as of 2024-05-15.
TTWO Profitability
Profitability trend analysis coming soon
TTWO Growth
Growth trend analysis coming soon
TTWO Financial Health
Financial health indicators coming soon
TTWO Quality & Fundamental Analysis
Take-Two Interactive Software Inc (TTWO) is a Communication Services company in the Electronic Gaming & Multimedia industry, listed on NASDAQ. This quality analysis page evaluates Take-Two Interactive Software Inc's financial health using the Piotroski F-Score methodology, profitability ratios, growth trajectory, and balance sheet strength.
Take-Two Interactive Software Inc has a Piotroski F-Score of N/A out of 9, measuring profitability, leverage, and operating efficiency. The company operates with a profit margin of -60.45% and a return on equity (ROE) of -185.48%. Return on assets (ROA) stands at -43.19%.
The debt-to-equity ratio is 1.92, with a current ratio of 0.78. Operating margin is -77.94%.
GoodMoat's quality analysis uses AI-powered insights to evaluate whether Take-Two Interactive Software Inc is a fundamentally sound investment. The GoodMoat Verdict synthesizes profitability, growth, and financial health scores into a clear investment quality rating. Use these metrics alongside valuation tools like the DCF calculator and fair value models to make informed investment decisions.