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Take-Two Interactive Software

Nasdaq:TTWO
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TTWO
Nasdaq
$12B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The last earnings update was 36 days ago. More info.


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TTWO Share Price and Events
7 Day Returns
2.1%
NasdaqGS:TTWO
2.1%
US Entertainment
1.2%
US Market
1 Year Returns
-5.9%
NasdaqGS:TTWO
1.2%
US Entertainment
2.3%
US Market
TTWO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Take-Two Interactive Software (TTWO) 2.1% 7.8% 12% -5.9% 198.6% 412.8%
US Entertainment 2.1% 2.3% 5.7% 1.2% 69.7% 92.2%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • TTWO underperformed the Entertainment industry which returned 1.2% over the past year.
  • TTWO underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
TTWO
Industry
5yr Volatility vs Market

Value

 Is Take-Two Interactive Software undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Take-Two Interactive Software to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Take-Two Interactive Software.

NasdaqGS:TTWO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:TTWO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.931 (1 + (1- 21%) (0%))
0.954
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.954 * 5.96%)
8.41%

Discounted Cash Flow Calculation for NasdaqGS:TTWO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Take-Two Interactive Software is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:TTWO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.41%)
2019 671.74 Analyst x8 619.61
2020 521.66 Analyst x8 443.84
2021 514.63 Analyst x8 403.87
2022 488.60 Analyst x2 353.69
2023 417.00 Analyst x1 278.44
2024 399.96 Est @ -4.09% 246.33
2025 391.79 Est @ -2.04% 222.58
2026 389.40 Est @ -0.61% 204.05
2027 390.93 Est @ 0.39% 188.96
2028 395.20 Est @ 1.09% 176.20
Present value of next 10 years cash flows $3,137.58
NasdaqGS:TTWO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $395.20 × (1 + 2.73%) ÷ (8.41% – 2.73%)
$7,143.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,143.90 ÷ (1 + 8.41%)10
$3,185.08
NasdaqGS:TTWO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,137.58 + $3,185.08
$6,322.66
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,322.66 / 106.47
$59.38
NasdaqGS:TTWO Discount to Share Price
Calculation Result
Value per share (USD) From above. $59.38
Current discount Discount to share price of $111.02
= -1 x ($111.02 - $59.38) / $59.38
-87%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Take-Two Interactive Software is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Take-Two Interactive Software's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Take-Two Interactive Software's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:TTWO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.95
NasdaqGS:TTWO Share Price ** NasdaqGS (2019-06-19) in USD $111.02
United States of America Entertainment Industry PE Ratio Median Figure of 23 Publicly-Listed Entertainment Companies 30.37x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Take-Two Interactive Software.

NasdaqGS:TTWO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:TTWO Share Price ÷ EPS (both in USD)

= 111.02 ÷ 2.95

37.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Take-Two Interactive Software is overvalued based on earnings compared to the US Entertainment industry average.
  • Take-Two Interactive Software is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Take-Two Interactive Software's expected growth come at a high price?
Raw Data
NasdaqGS:TTWO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
5%per year
United States of America Entertainment Industry PEG Ratio Median Figure of 18 Publicly-Listed Entertainment Companies 2.74x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:TTWO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 37.64x ÷ 5%

7.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Take-Two Interactive Software is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Take-Two Interactive Software's assets?
Raw Data
NasdaqGS:TTWO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $19.23
NasdaqGS:TTWO Share Price * NasdaqGS (2019-06-19) in USD $111.02
United States of America Entertainment Industry PB Ratio Median Figure of 62 Publicly-Listed Entertainment Companies 3.15x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NasdaqGS:TTWO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:TTWO Share Price ÷ Book Value per Share (both in USD)

= 111.02 ÷ 19.23

5.77x

* Primary Listing of Take-Two Interactive Software.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Take-Two Interactive Software is overvalued based on assets compared to the US Entertainment industry average.
X
Value checks
We assess Take-Two Interactive Software's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Take-Two Interactive Software has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Take-Two Interactive Software expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Take-Two Interactive Software expected to grow at an attractive rate?
  • Take-Two Interactive Software's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Take-Two Interactive Software's earnings growth is positive but not above the United States of America market average.
  • Take-Two Interactive Software's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:TTWO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:TTWO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 5%
NasdaqGS:TTWO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 7.6%
United States of America Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 16.3%
United States of America Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:TTWO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:TTWO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 3,898 945 2
2023-03-31 3,837 901 422 3
2022-03-31 3,581 679 422 8
2021-03-31 2,712 637 353 19
2020-03-31 2,689 661 400 21
NasdaqGS:TTWO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,668 844 334
2018-12-31 2,580 543 368
2018-09-30 1,812 56 213
2018-06-30 1,763 333 185
2018-03-31 1,793 494 173
2017-12-31 1,914 333 180
2017-09-30 1,910 515 126
2017-06-30 1,886 429 165
2017-03-31 1,780 408 66
2016-12-31 1,585 312 14
2016-09-30 1,523 190 2
2016-06-30 1,450 109 18

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Take-Two Interactive Software's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • Take-Two Interactive Software's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:TTWO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Take-Two Interactive Software Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TTWO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 3.98 4.04 3.92 2.00
2021-03-31 2.83 3.17 2.33 6.00
2020-03-31 3.53 3.80 2.74 9.00
NasdaqGS:TTWO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.95
2018-12-31 3.24
2018-09-30 1.88
2018-06-30 1.65
2018-03-31 1.57
2017-12-31 1.69
2017-09-30 1.24
2017-06-30 1.73
2017-03-31 0.73
2016-12-31 0.17
2016-09-30 0.02
2016-06-30 0.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Take-Two Interactive Software is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Take-Two Interactive Software's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Take-Two Interactive Software has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Take-Two Interactive Software's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Take-Two Interactive Software has delivered over 20% year on year earnings growth in the past 5 years.
  • Take-Two Interactive Software's 1-year earnings growth exceeds its 5-year average (92.6% vs 23.1%)
  • Take-Two Interactive Software's earnings growth has exceeded the US Entertainment industry average in the past year (92.6% vs 62.5%).
Earnings and Revenue History
Take-Two Interactive Software's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Take-Two Interactive Software Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:TTWO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,668.39 333.84 672.63 230.17
2018-12-31 2,579.66 367.91 633.85 227.71
2018-09-30 1,811.76 212.89 547.36 215.38
2018-06-30 1,762.66 184.79 523.61 204.82
2018-03-31 1,792.89 173.37 510.42 196.37
2017-12-31 1,914.17 180.47 494.46 178.67
2017-09-30 1,909.81 125.70 497.75 166.28
2017-06-30 1,886.41 164.87 489.89 146.28
2017-03-31 1,779.75 66.03 496.86 137.92
2016-12-31 1,585.40 14.42 478.92 134.80
2016-09-30 1,523.15 1.85 439.07 125.16
2016-06-30 1,449.95 17.83 414.04 119.57
2016-03-31 1,413.70 -8.30 390.76 119.81
2015-12-31 1,336.58 -297.49 399.02 121.66
2015-09-30 1,453.51 -218.11 440.56 124.93
2015-06-30 1,232.81 -308.77 428.84 125.05
2015-03-31 1,082.94 -279.47 410.43 115.04
2014-12-31 978.06 -66.04 398.12 108.52
2014-09-30 2,310.78 397.59 352.85 106.53
2014-06-30 2,333.33 347.11 404.11 108.52
2014-03-31 2,350.57 320.63 402.37 105.26
2013-12-31 2,454.85 371.15 416.14 97.81
2013-09-30 1,006.75 -64.37 404.55 90.94
2013-06-30 1,131.01 17.73 356.84 83.74
2013-03-31 1,214.48 -31.16 404.59 78.18
2012-12-31 1,063.08 -118.34 387.67 71.82
2012-09-30 883.63 -169.22 364.00 66.28
2012-06-30 717.58 -209.85 321.90 62.96

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Take-Two Interactive Software has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Take-Two Interactive Software used its assets more efficiently than the US Entertainment industry average last year based on Return on Assets.
  • Take-Two Interactive Software has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Take-Two Interactive Software's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Take-Two Interactive Software has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Take-Two Interactive Software's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Take-Two Interactive Software's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Take-Two Interactive Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Take-Two Interactive Software's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Take-Two Interactive Software's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Take-Two Interactive Software has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Take-Two Interactive Software Company Filings, last reported 2 months ago.

NasdaqGS:TTWO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,040.58 0.00 1,571.01
2018-12-31 2,027.47 0.00 1,600.65
2018-09-30 1,944.44 0.00 1,025.30
2018-06-30 1,852.21 5.23 1,102.26
2018-03-31 1,488.97 8.07 1,424.38
2017-12-31 1,400.82 13.84 1,321.78
2017-09-30 1,472.45 52.37 1,263.14
2017-06-30 1,099.76 212.86 1,281.06
2017-03-31 1,003.73 251.93 1,392.33
2016-12-31 820.92 258.88 1,443.95
2016-09-30 582.75 511.64 1,174.59
2016-06-30 533.54 504.39 1,188.82
2016-03-31 581.39 497.94 1,269.56
2015-12-31 526.97 491.58 1,214.68
2015-09-30 564.07 487.60 1,064.67
2015-06-30 526.84 481.78 1,190.80
2015-03-31 563.09 473.03 1,098.05
2014-12-31 815.39 470.42 976.59
2014-09-30 755.01 464.87 803.78
2014-06-30 783.04 459.41 841.37
2014-03-31 801.81 454.03 935.40
2013-12-31 822.00 448.74 972.17
2013-09-30 498.86 443.53 661.92
2013-06-30 606.98 536.69 646.32
2013-03-31 588.00 335.20 402.50
2012-12-31 564.81 330.31 448.72
2012-09-30 484.51 325.54 328.28
2012-06-30 477.04 320.88 367.06
  • Take-Two Interactive Software has no debt.
  • Take-Two Interactive Software has no debt compared to 5 years ago when it was 56.6%.
  • Take-Two Interactive Software has no debt, it does not need to be covered by operating cash flow.
  • Take-Two Interactive Software has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Take-Two Interactive Software's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Take-Two Interactive Software has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Take-Two Interactive Software dividends. Estimated to be 0% next year.
If you bought $2,000 of Take-Two Interactive Software shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Take-Two Interactive Software's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Take-Two Interactive Software's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:TTWO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
United States of America Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:TTWO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 0.00 2.00
2021-03-31 0.00 4.00
2020-03-31 0.00 4.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Take-Two Interactive Software has not reported any payouts.
  • Unable to verify if Take-Two Interactive Software's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Take-Two Interactive Software's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Take-Two Interactive Software has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Take-Two Interactive Software's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Take-Two Interactive Software's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Take-Two Interactive Software afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Take-Two Interactive Software has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Take-Two Interactive Software's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Strauss Zelnick
COMPENSATION $42,629
AGE 61
TENURE AS CEO 8.4 years
CEO Bio

Mr. Strauss H. Zelnick, Esq. & J.D., serves as Independent Director at CBS Corporation since September 9, 2018 and has been its Interim Chairman since October 21, 2018. Mr. Zelnick has been the Chief Executive Officer of Take-Two Interactive Software Inc. since January 1, 2011 and also has been its Executive Chairman since January 2008. Mr. Zelnick founded Zelnick Media Capital (ZMC) and also serves as its Chief Executive Officer and Managing Partner at ZelnickMedia and has been its Partner since 2001. He is responsible for managing the day-to-day operations of the Zelnick Media Capital as well as originating, structuring and monitoring investments with a focus on music, film, television and interactive entertainment. Mr. Zelnick is the Partner and Principal at ZM Capital Advisors, L.L.C. He is the Founder, Managing Partner, Chief Executive Officer and Partner of ZM Capital I, L.P. He serves as an Advisor at Thrive Capital. He served at On2 Technologies Inc. He provides general management and financial advisory services to the portfolio companies in the United States and Asia of media enterprises. He served as Senior Advisor at RRE Ventures LLC. He served as the Chairman and Chief Executive Officer of DuPont Energy Company, LLC. He served as the President and Chief Operating Officer at Twentieth Century Fox Film Corporation from 1989 to 1993, where he managed all aspects of Fox's worldwide motion picture and distribution business. He served as the President of Inovision Corporation. He served as the Chairman and Chief Executive Officer of Nippon Columbia Co., Ltd. He also served as Vice President of International Television Sales at Columbia Pictures. He served as Partner at Quad Partners. He served as the President and Chief Executive Officer at BMG Entertainment, Inc., from 1998 to 2000, where he managed one of the world's largest music and entertainment companies with more than 200 record labels and operations in 54 countries, as well as one of the leading music publishing companies and the world's largest music club. He served as the President and Chief Executive Officer at BMG's North American Business Unit from 1995 to 1998. Prior to that, he served as the President and Chief Executive Officer at Crystal Dynamics, Inc. He spent three years at Vestron Inc. as a Senior Executive and rose to become the President and Chief Operating Officer. He began his career in the entertainment industry as a Vice President of the International Television Division at Warner Brothers Publications. He served as the Chairman and Chief Executive Officer of Columbia Music Entertainment. He served as an Executive Chairman of Direct Holdings Worldwide, LLC until March 2, 2007 and also served as its Chief Executive Officer. He also served as Vice President of International Sales of Television for Columbia Pictures. He serves as the Chairman of Board of Directors at Columbia Music Entertainment and ITN Networks, LLC. He served as the Chairman of Ipsos OTX Corporation. He served as the Chairman of Take-Two Interactive Software Inc. since March 2007. Mr. Zelnick serves on the Board of Financial Group, Inc., On2.com and Naylor, LLC. Mr. Zelnick also serves as an Independent Director on the Board of Blockbuster Inc. He has been a Director of Starwood Trust Group, Inc., since 2009, Third Wave Acquisition Corp., since November 16, 2007. He serves as a Director of Education Networks of America, Inc., 9 Story Limited, Icebox, Inc., The Partnership for New York City, Inc. and Threshold Sports, LLC. He has been a Director of AOL MovieFone, Inc. since March 1994, Take-Two Interactive Software Inc. since March 2007 and Starwood Property Trust, Inc. since 2009. He serves as a Member of Advisory Board at Second City Capital Partners Fund I, L.P. and Second City Capital Partners. He also serves as a member of the boards of directors of the National Book Foundation and Covenant House International. Mr. Zelnick serves as a Trustee Emeritus of Wesleyan University and a Trustee of WNYC. He served as a Board Member at Cast & Crew Entertainment Services, L.L.C and Naylor, LLC. Mr. Zelnick served on the Boards of Insignia Financial Group, Inc. and Moviefone Inc. He served as a Director of Alloy, LLC. He served as a Member of the Advisory Board at Drop.io, Inc., since March 2008. He served as Non-Executive Director of Reed Elsevier Group Plc from April 2005 to December 7, 2007. He served as a Director at 9 Story Media Group Inc. He served as a Director at UGO Entertainment, Inc., Twentieth Century Fox Film Corporation and BB Liquidating Inc., from May 2005 to April 26, 2011. He served as a Director of Carver Bancorp, Inc. from 2000 to July 11, 2007, Reed Elsevier NV since April 2005 and Nippon Columbia Co., Ltd. since June 2003. Mr. Zelnick served as a Director of Columbia Co., Ltd. since June 2003. He served as a Director of BMG Entertainment, Inc., Direct Holdings Worldwide, LLC and Carver Federal Savings Bank. He served as a Non-Executive Director of RELX PLC from April 27, 2005 to December 7, 2007 and RELX Group plc from April 2005 to December 7, 2007. He served as a Member of Supervisory Board at RELX NV since April 2005. He served as Chairman of the Entertainment Software Association from July 2014 to July 2017 and serves as its Director. He is also an Associate Member of the National Academy of Recording Arts and Sciences. He served on the Board of the Recording Industry Association of America and the Motion Picture Association of America. Mr. Zelnick is a recognized leader in the media and entertainment business, having held top executive positions in the recorded music, television, video, motion picture and entertainment software industries. His leadership also extended to issues of cultural and political importance to the industry, specifically on youth and violence. Mr. Zelnick holds a J.D. from Harvard Law School, a M.B.A. from Harvard Business School and a B.A. from Wesleyan University.

CEO Compensation
  • Strauss's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Strauss's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Take-Two Interactive Software management team in years:

5.4
Average Tenure
49
Average Age
  • The average tenure for the Take-Two Interactive Software management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Strauss Zelnick

TITLE
Executive Chairman & CEO
COMPENSATION
$43K
AGE
61
TENURE
8.4 yrs

Karl Slatoff

TITLE
President
COMPENSATION
$21K
AGE
48
TENURE
6.1 yrs

Lainie Goldstein

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
50
TENURE
12 yrs

Dan Emerson

TITLE
Executive VP & General Counsel
COMPENSATION
$3M
AGE
46
TENURE
4.7 yrs

Henry Diamond

TITLE
Senior Vice President of Investor Relations & Corporate Communications

Matthew Breitman

TITLE
Senior VP

Sam Houser

TITLE
President of Rockstar Games

David Ismailer

TITLE
President of 2K
TENURE
2 yrs

Michael Condrey

TITLE
President of New Game Development Studio - Silicon Valley
TENURE
0.3 yrs

Linda Zabriskie

TITLE
VP & Associate General Counsel
Board of Directors Tenure

Average tenure and age of the Take-Two Interactive Software board of directors in years:

8.8
Average Tenure
58
Average Age
  • The tenure for the Take-Two Interactive Software board of directors is about average.
Board of Directors

Michael Sheresky

TITLE
Independent Director
COMPENSATION
$325K
AGE
50
TENURE
12.3 yrs

Strauss Zelnick

TITLE
Executive Chairman & CEO
COMPENSATION
$43K
AGE
61
TENURE
12.3 yrs

Jay Moses

TITLE
Independent Director
COMPENSATION
$300K
AGE
59
TENURE
12.3 yrs

Michael Dornemann

TITLE
Lead Independent Director
COMPENSATION
$508K
AGE
72

Susan Tolson

TITLE
Independent Director
COMPENSATION
$285K
AGE
56
TENURE
5.3 yrs

LaVerne Srinivasan

TITLE
Independent Director
COMPENSATION
$286K
AGE
56
TENURE
2.3 yrs

Paul Viera

TITLE
Director
AGE
58
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • Take-Two Interactive Software insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Jun 19 Sell Strauss Zelnick Individual 12. Jun 19 12. Jun 19 -25,000 $108.74 $-2,718,483
08. Apr 19 Sell Zelnick Media Capital Company 04. Apr 19 04. Apr 19 -144,614 $97.57 $-13,601,397
29. Aug 18 Buy Paul Viera Individual 24. Aug 18 27. Aug 18 75,000 $134.00 $10,045,087
X
Management checks
We assess Take-Two Interactive Software's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Take-Two Interactive Software has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Take-Two Interactive Software, Inc. (NASDAQ:TTWO): What Does The Future Look Like?

On 31 March 2019, Take-Two Interactive Software, Inc. … Below is a brief commentary on the longer term outlook the market has for Take-Two Interactive Software. … See our latest analysis for Take-Two Interactive Software What can we expect from Take-Two Interactive Software in the longer term?

Simply Wall St -

Does This Valuation Of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Imply Investors Are Overpaying?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $671.74 $531.88 $590.12 $862.07 $738.65 $664.92 $623.90 $602.07 $592.25 $590.35 Growth Rate Estimate Source Analyst x8 Analyst x9 Analyst x9 Analyst x3 Analyst x2 Est @ -9.98% Est @ -6.17% Est @ -3.5% Est @ -1.63% Est @ -0.32% Present Value ($, Millions) Discounted @ 8.48% $619.20 $451.93 $462.21 $622.39 $491.58 $407.90 $352.80 $313.83 $284.57 $261.47 Present Value of 10-year Cash Flow (PVCF)= $4.27b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$590m × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$11b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$11b ÷ ( 1 + 8.5%)10 = $4.67b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $8.94b. … NasdaqGS:TTWO Intrinsic value, May 31st 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

How Did Take-Two Interactive Software, Inc.'s (NASDAQ:TTWO) 16% ROE Fare Against The Industry?

To keep the lesson grounded in practicality, we'll use ROE to better understand Take-Two Interactive Software, Inc. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Take-Two Interactive Software: 16% = US$334m ÷ US$2.0b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Take-Two Interactive Software's Debt And Its 16% Return On Equity Shareholders will be pleased to learn that Take-Two Interactive Software has not one iota of net debt!

Simply Wall St -

With EPS Growth And More, Take-Two Interactive Software (NASDAQ:TTWO) Is Interesting

In contrast to all that, I prefer to spend time on companies like Take-Two Interactive Software (NASDAQ:TTWO), which has not only revenues, but also profits. … Like a firecracker arcing through the night sky, Take-Two Interactive Software's EPS shot from US$1.69 to US$3.24, over the last year. … While we note Take-Two Interactive Software's EBIT margins were flat over the last year, revenue grew by a solid 35% to US$2.6b

Simply Wall St -

Are Take-Two Interactive Software, Inc.’s (NASDAQ:TTWO) Returns Worth Your While?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should You Be Tempted To Sell Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Because Of Its P/E Ratio?

We'll look at Take-Two Interactive Software, Inc.'s (NASDAQ:TTWO) P/E ratio and reflect on what it tells us about the company's share price. … Looking at earnings over the last twelve months, Take-Two Interactive Software has a P/E ratio of 29.06. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Did Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Insiders Buy Up More Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Take-Two Interactive Software, Inc. … Take-Two Interactive Software Insider Transactions Over The Last Year.

Simply Wall St -

Investors Who Bought Take-Two Interactive Software (NASDAQ:TTWO) Shares Five Years Ago Are Now Up 330%

Just think about the savvy investors who held Take-Two Interactive Software, Inc. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

Simply Wall St -

Take-Two Interactive Software, Inc. (NASDAQ:TTWO): What Does The Future Look Like?

(NASDAQ:TTWO) announced its earnings release on 31 December 2018, … as a 2.6% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 8.0%.

Simply Wall St -

Estimating The Fair Value Of Take-Two Interactive Software, Inc. (NASDAQ:TTWO)

Help shape the future of investing tools and receive a $20 prize! … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Company Info

Description

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.

Details
Name: Take-Two Interactive Software, Inc.
TTWO
Exchange: NasdaqGS
Founded: 1993
$11,820,577,061
106,472,501
Website: http://www.take2games.com
Address: Take-Two Interactive Software, Inc.
110 West 44th Street,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS TTWO Common Stock Nasdaq Global Select US USD 15. Apr 1997
DB TKE Common Stock Deutsche Boerse AG DE EUR 15. Apr 1997
LSE 0LCX Common Stock London Stock Exchange GB USD 15. Apr 1997
WBAG TTWO Common Stock Wiener Boerse AG AT EUR 15. Apr 1997
Number of employees
Current staff
Staff numbers
4,894
Take-Two Interactive Software employees.
Industry
Interactive Home Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 23:47
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.