NasdaqGS:TTWO

Stock Analysis Report

Take-Two Interactive Software

Executive Summary

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Take-Two Interactive Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TTWO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

TTWO

0.3%

US Entertainment

0.9%

US Market


1 Year Return

21.6%

TTWO

20.4%

US Entertainment

20.0%

US Market

Return vs Industry: TTWO matched the US Entertainment industry which returned 20.7% over the past year.

Return vs Market: TTWO exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

TTWOIndustryMarket
7 Day2.2%0.3%0.9%
30 Day-12.8%1.6%1.4%
90 Day-8.3%7.3%8.8%
1 Year21.6%21.6%21.2%20.4%22.5%20.0%
3 Year90.0%90.0%55.0%50.0%49.9%40.3%
5 Year320.1%320.1%92.1%80.4%73.2%54.1%

Price Volatility Vs. Market

How volatile is Take-Two Interactive Software's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Take-Two Interactive Software undervalued compared to its fair value and its price relative to the market?

35.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTWO ($113.43) is trading below our estimate of fair value ($174.67)

Significantly Below Fair Value: TTWO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TTWO is poor value based on its PE Ratio (37.8x) compared to the Entertainment industry average (24.9x).

PE vs Market: TTWO is poor value based on its PE Ratio (37.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: TTWO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TTWO is overvalued based on its PB Ratio (5.1x) compared to the US Entertainment industry average (2.4x).


Next Steps

Future Growth

How is Take-Two Interactive Software forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

-0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTWO's earnings are forecast to decline over the next 3 years (-0.7% per year).

Earnings vs Market: TTWO's earnings are forecast to decline over the next 3 years (-0.7% per year).

High Growth Earnings: TTWO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TTWO's revenue (10.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TTWO's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTWO's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Take-Two Interactive Software performed over the past 5 years?

68.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTWO has high quality earnings.

Growing Profit Margin: TTWO's current net profit margins (11.8%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: TTWO has become profitable over the past 5 years, growing earnings by 68.4% per year.

Accelerating Growth: TTWO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TTWO had negative earnings growth (-8%) over the past year, making it difficult to compare to the Entertainment industry average (-8.9%).


Return on Equity

High ROE: TTWO's Return on Equity (14.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Take-Two Interactive Software's financial position?


Financial Position Analysis

Short Term Liabilities: TTWO's short term assets ($3.4B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: TTWO's short term assets ($3.4B) exceed its long term liabilities ($381.3M).


Debt to Equity History and Analysis

Debt Level: TTWO is debt free.

Reducing Debt: TTWO has no debt compared to 5 years ago when its debt to equity ratio was 57.9%.

Debt Coverage: TTWO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TTWO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TTWO has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TTWO's debt is covered by short term assets.


Next Steps

Dividend

What is Take-Two Interactive Software's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TTWO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TTWO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TTWO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TTWO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TTWO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Strauss Zelnick (62yo)

9.1yrs

Tenure

US$109,540

Compensation

Mr. Strauss H. Zelnick, Esq. & J.D., served as Independent Director at CBS Corporation since September 9, 2018 until December 4, 2019 and its Interim Chairman since October 21, 2018 until December 4, 2019. ...


CEO Compensation Analysis

Compensation vs Market: Strauss's total compensation ($USD109.54K) is below average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Strauss's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Strauss Zelnick
Executive Chairman & CEO9.1yrsUS$109.54k0.19% $23.2m
Karl Slatoff
President6.8yrsUS$21.04kno data
Lainie Goldstein
Chief Financial Officer12.7yrsUS$6.55m0.15% $18.9m
Daniel Emerson
Executive VP & Chief Legal Officer5.3yrsUS$2.69m0.0043% $520.0k
Henry Diamond
Senior Vice President of Investor Relations & Corporate Communications0yrsno datano data
Matthew Breitman
Senior VP0yrsno datano data
Sam Houser
President of Rockstar Games0yrsno datano data
David Ismailer
President of 2K2.7yrsno datano data
Michael Condrey
President of New Game Development Studio - Silicon Valley1yrsno datano data
Linda Zabriskie
VP & Associate General Counsel0yrsno datano data

6.0yrs

Average Tenure

50yo

Average Age

Experienced Management: TTWO's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Strauss Zelnick
Executive Chairman & CEO9.1yrsUS$109.54k0.19% $23.2m
Jay Moses
Independent Director12.9yrsUS$328.75k0.017% $2.1m
Roland Hernandez
Independent Director0.4yrsno data0.00065% $79.2k
Paul Viera
Independent Director1.8yrsUS$253.85k0.074% $9.0m
Michael Dornemann
Lead Independent Director0yrsUS$500.03k0.010% $1.2m
Susan Tolson
Independent Director5.9yrsUS$313.75k0.021% $2.6m
Michael Sheresky
Independent Director12.9yrsUS$336.42k0.065% $8.0m
LaVerne Srinivasan
Independent Director2.9yrsUS$281.42k0.0052% $633.2k

5.9yrs

Average Tenure

60yo

Average Age

Experienced Board: TTWO's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Take-Two Interactive Software, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Take-Two Interactive Software, Inc.
  • Ticker: TTWO
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$12.177b
  • Shares outstanding: 107.36m
  • Website: https://www.take2games.com

Number of Employees


Location

  • Take-Two Interactive Software, Inc.
  • 110 West 44th Street
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTWONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1997
TKEDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1997
0LCXLSE (London Stock Exchange)YesCommon StockGBUSDApr 1997
TTWOWBAG (Wiener Boerse AG)YesCommon StockATEURApr 1997
TTWO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 1997
T1TW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels, as well as under Private Division and Social Point labels. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption names through developing sequels; and offers downloadable episodes, content and virtual currency, and releasing titles for smartphones and tablets. The company also develops brands in other genres, including the LA Noire, Bully, and Manhunt franchises. In addition, the company publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier's Civilization, XCOM series, and Borderlands. Further, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; and the Golf Club. Additionally, the company offers free-to-play mobile games, such as Dragon City and Monster Legends. Its products are designed for console gaming systems, including Sony's PlayStation 4; Microsoft's Xbox One; the Nintendo Switch; and personal computers comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was founded in 1993 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:50
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.