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

Fundamentals

Flawless balance sheet with proven 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


Market Performance


7 Day Return

-1.6%

TTWO

-0.7%

US Entertainment

0.07%

US Market


1 Year Return

2.7%

TTWO

2.3%

US Entertainment

8.9%

US Market

Return vs Industry: TTWO matched the US Entertainment industry which returned 2.3% over the past year.

Return vs Market: TTWO underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

TTWOIndustryMarket
7 Day-1.6%-0.7%0.07%
30 Day-6.6%-1.4%-0.3%
90 Day2.6%-5.9%-1.6%
1 Year2.7%2.7%3.0%2.3%11.3%8.9%
3 Year165.9%165.9%52.8%47.8%46.3%36.8%
5 Year427.9%427.9%92.2%79.7%62.1%44.3%

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?

4.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TTWO ($121.99) is trading below our estimate of fair value ($127.48)

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 (44.7x) compared to the Entertainment industry average (42.7x).

PE vs Market: TTWO is poor value based on its PE Ratio (44.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TTWO is poor value based on its PEG Ratio (10.7x)


Price to Book Ratio

PB vs Industry: TTWO is overvalued based on its PB Ratio (6.3x) compared to the US Entertainment industry average (2.8x).


Next Steps

Future Growth

How is Take-Two Interactive Software forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTWO's forecast earnings growth (4.2% per year) is above the savings rate (2.7%).

Earnings vs Market: TTWO's earnings (4.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TTWO's revenue (10.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: TTWO's revenue (10.9% 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 (16.2%).


Next Steps

Past Performance

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

36.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TTWO's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: TTWO's earnings growth over the past year (66.9%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: TTWO earnings growth over the past year (66.9%) exceeded the Entertainment industry 12%.


Return on Equity

High ROE: TTWO's Return on Equity (14.8%) is considered low.


Return on Assets

ROA vs Industry: TTWO has a higher Return on Assets than the Entertainment industry average last year.


Return on Capital Employed

ROCE Improving: TTWO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: TTWO's short term assets ($2.8B) exceeds its short term liabilities ($1.9B)

Long Term Liabilities: TTWO's short term assets (2.8B) exceeds its long term liabilities (337.9M)


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 58.7%.

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%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

5.7yrs

Average management tenure


CEO

Strauss Zelnick (62yo)

8.8yrs

Tenure

US$109,540

Compensation

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 Execu ...


CEO Compensation Analysis

Compensation vs. Market: Strauss's total compensation ($USD109.54K) is below average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

5.7yrs

Average Tenure

50yo

Average Age

Experienced Management: TTWO's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

60yo

Average Age

Experienced Board: TTWO's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$570,47019 Aug 19
Daniel Emerson
EntityIndividual
Role
Chief Legal Officer
Executive VP & Chief Legal Officer
Shares4,500
Max PriceUS$126.77
SellUS$2,603,57609 Aug 19
Strauss Zelnick
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares20,000
Max PriceUS$130.87
SellUS$2,718,48314 Jun 19
Strauss Zelnick
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares25,000
Max PriceUS$108.74
SellUS$13,601,39708 Apr 19
Zelnick Media Capital
EntityCompany
Shares144,614
Max PriceUS$97.57

Ownership Breakdown


Management Team

  • Strauss Zelnick (62yo)

    Executive Chairman & CEO

    • Tenure: 8.8yrs
    • Compensation: US$109.54k
  • Sam Houser

    President of Rockstar Games

    • Tenure: 0yrs
  • Karl Slatoff (49yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$21.04k
  • Lainie Goldstein (51yo)

    Chief Financial Officer

    • Tenure: 12.3yrs
    • Compensation: US$6.55m
  • Henry Diamond

    Senior Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Dan Emerson (47yo)

    Executive VP & Chief Legal Officer

    • Tenure: 5yrs
    • Compensation: US$2.69m
  • Michael Condrey

    President of New Game Development Studio - Silicon Valley

    • Tenure: 0.7yrs
  • Linda Zabriskie

    VP & Associate General Counsel

    • Tenure: 0yrs
  • Matthew Breitman

    Senior VP

    • Tenure: 0yrs
  • David Ismailer

    President of 2K

    • Tenure: 2.3yrs

Board Members

  • Jay Moses (60yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$328.75k
  • Roland Hernandez (61yo)

    Independent Director

    • Tenure: 0.08yrs
  • Strauss Zelnick (62yo)

    Executive Chairman & CEO

    • Tenure: 8.8yrs
    • Compensation: US$109.54k
  • Paul Viera (60yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$253.85k
  • Michael Dornemann (73yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$500.03k
  • Susan Tolson (57yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$313.75k
  • Michael Sheresky (51yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$336.42k
  • LaVerne Srinivasan (57yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$281.42k

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$13.066b
  • Shares outstanding: 107.11m
  • 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

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 Analysis2019/10/22 23:40
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.