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Take-Two Interactive Software

Market Cap

US$18.6b

Last Updated

2021/05/09 23:10 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with acceptable track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TTWO's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

TTWO

-2.3%

US Entertainment

0.2%

US Market


1 Year Return

31.0%

TTWO

57.4%

US Entertainment

49.9%

US Market

Return vs Industry: TTWO underperformed the US Entertainment industry which returned 57.2% over the past year.

Return vs Market: TTWO underperformed the US Market which returned 49.9% over the past year.


Shareholder returns

TTWOIndustryMarket
7 Day-3.0%-2.3%0.2%
30 Day-7.6%-5.1%1.5%
90 Day-20.3%-11.7%3.3%
1 Year31.0%31.0%57.6%57.4%52.4%49.9%
3 Year46.5%46.5%91.1%88.4%63.7%53.4%
5 Year360.1%360.1%163.2%152.3%130.6%104.9%

Long-Term 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?

0.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTWO ($170.07) is trading below our estimate of fair value ($171.41)

Significantly Below Fair Value: TTWO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TTWO is poor value based on its PE Ratio (39.4x) compared to the US Entertainment industry average (36.5x).

PE vs Market: TTWO is poor value based on its PE Ratio (39.4x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: TTWO is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: TTWO is overvalued based on its PB Ratio (5.9x) compared to the US Entertainment industry average (4.8x).


Future Growth

How is Take-Two Interactive Software forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTWO's forecast earnings growth (13.7% per year) is above the savings rate (2%).

Earnings vs Market: TTWO's earnings (13.7% per year) are forecast to grow slower than the US market (15.1% per year).

High Growth Earnings: TTWO's earnings are forecast to grow, but not significantly.

Revenue vs Market: TTWO's revenue (11.3% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: TTWO's revenue (11.3% 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 (17%).


Past Performance

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

51.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTWO has high quality earnings.

Growing Profit Margin: TTWO's current net profit margins (15%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: TTWO has become profitable over the past 5 years, growing earnings by 51.6% per year.

Accelerating Growth: TTWO's earnings growth over the past year (45.2%) is below its 5-year average (51.6% per year).

Earnings vs Industry: TTWO earnings growth over the past year (45.2%) underperformed the Entertainment industry 46.6%.


Return on Equity

High ROE: TTWO's Return on Equity (15.6%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: TTWO's short term assets ($4.2B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: TTWO's short term assets ($4.2B) exceed its long term liabilities ($469.0M).


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 93.1%.

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


Dividend

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


Dividend Yield vs Market

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

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

7.3yrs

Average management tenure


CEO

Strauss Zelnick (63 yo)

10.33yrs

Tenure

US$87,761

Compensation

Mr. Strauss H. Zelnick, Esq. & J.D., serves as Advisor at Hatzimemos / Libby. He served as Independent Director at CBS Corporation since September 9, 2018 until December 4, 2019 and its Interim Chairman si...


CEO Compensation Analysis

Compensation vs Market: Strauss's total compensation ($USD87.76K) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Strauss's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TTWO's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: TTWO's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TTWO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


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$18.643b
  • Shares outstanding: 109.62m
  • 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


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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 23:10
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.