Take-Two Interactive SoftwareFRA:TKE -0.57%74 Operating Margin % is 0.60% as of Mar. 2026, which is 91% below its 10-year median of 6.35. GuruFocus rates FRA:TKE with a GF Score™ of 74/100 and a GF Value™ of €185.18 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 553 Interactive Media companies, Take-Two Interactive Software ranks worse than 61.84% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Take-Two Interactive Software Operating Margin % Related Terms
Take-Two Interactive Software Operating Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:TKE vs RBLX, EA, NTES: Operating Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Take-Two Interactive Software Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Take-Two Interactive Software's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Take-Two Interactive Software (FRA:TKE) has a Operating Margin % of 0.60% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Take-Two Interactive Software and its competitors. This is 91% below median its historical median of 6.35. According to the industry distribution chart, Take-Two Interactive Software ranks #342 out of 553 companies in the Interactive Media industry, placing it in the top 61.8%.
Is Take-Two Interactive Software's Operating Margin % too high?
Take-Two Interactive Software's current Operating Margin % of 0.60% is 91% below median its 10-year median of 6.35. The Interactive Media industry median Operating Margin % is 2.99. Take-Two Interactive Software's value of 0.60% is 79.9% below this industry median. Based on the distribution chart, Take-Two Interactive Software ranks #342 out of 553 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Take-Two Interactive Software has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Take-Two Interactive Software's Operating Margin % compare to RBLX and EA?
According to the Interactive Media industry distribution chart, Take-Two Interactive Software ranks #342 out of 553 companies for Operating Margin %. This places Take-Two Interactive Software in the lower half of its industry. The industry median Operating Margin % is 2.99. Take-Two Interactive Software's value of 0.60% is 79.9% below this benchmark. While the company's 10-year median is 6.35 vs. the industry median of 2.99, Take-Two Interactive Software has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.99, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Take-Two Interactive Software's current Operating Margin % of 0.60% is 79.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Take-Two Interactive Software and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Take-Two Interactive Software's current Operating Margin % is 0.60%, which is 91% below median its own 10-year median of 6.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Take-Two Interactive Software stock overvalued right now?
Based on GuruFocus' analysis, Take-Two Interactive Software (FRA:TKE) is currently considered Modestly Overvalued. The stock's GF Value™ is €185.18, compared to a current price of €210.40 — trading 13.6% above its estimated fair value. The current Operating Margin % is 0.60%, which is 91% below median its 10-year median of 6.35 and 79.9% below the Interactive Media industry median of 2.99. Take-Two Interactive Software's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Take-Two Interactive Software (FRA:TKE), the current Operating Margin % is 0.60% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Take-Two Interactive Software (FRA:TKE) Overvalued in 2026?
Based on GuruFocus' analysis, Take-Two Interactive Software stock appears to be overvalued.
The current stock price of €210.40 is trading 13.6% above its estimated GF Value™ of €185.18.
GuruFocus considers Take-Two Interactive Software to be Modestly Overvalued.
Key valuation signals for FRA:TKE:
Operating Margin %: 0.60% (91% below median its 10-year median of 6.35)
GF Value™: €185.18 vs. price of €210.40 (13.6% above fair value)
Industry Position: 79.9% below the Interactive Media median (#342 of 553)
No single metric tells the full story. See the FRA:TKE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Take-Two Interactive Software Business Description
Take-Two is one of the largest global developers and publishers of video games, with labels including Rockstar, 2K, and Zynga. Grand Theft Auto is the firm's biggest franchise, accounting for about 30% of total sales for the past decade. NBA 2K is the industry's dominant basketball video game, with Take-Two releasing a new version annually. Other notable franchises include Red Dead Redemption, Borderlands, and Civilization. Typically, more than three-fourths of the firm's sales are from in-game spending, with the remainder coming from initial game sales. Since acquiring Zynga in 2022, mobile makes up about half of total sales.
74GF Score
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