ACTIVISION BLIZZARD INC (ATVI) Fundamental Analysis & Valuation

NASDAQ:ATVI • US00507V1098

Current stock price

94.42 USD
-0.05 (-0.05%)
At close:
94.54 USD
+0.12 (+0.13%)
After Hours:

This ATVI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ATVI Profitability Analysis

1.1 Basic Checks

  • In the past year ATVI was profitable.
  • ATVI had a positive operating cash flow in the past year.
ATVI Yearly Net Income VS EBIT VS OCF VS FCFATVI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

1.2 Ratios

  • The Return On Assets of ATVI (7.59%) is better than 88.31% of its industry peers.
  • ATVI's Return On Equity of 10.41% is amongst the best of the industry. ATVI outperforms 87.01% of its industry peers.
  • With an excellent Return On Invested Capital value of 7.64%, ATVI belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ATVI is significantly below the industry average of 159.10%.
Industry RankSector Rank
ROA 7.59%
ROE 10.41%
ROIC 7.64%
ROA(3y)8.6%
ROA(5y)8.74%
ROE(3y)12.6%
ROE(5y)13.15%
ROIC(3y)10.28%
ROIC(5y)10.19%
ATVI Yearly ROA, ROE, ROICATVI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 5 10 15

1.3 Margins

  • ATVI has a better Profit Margin (24.87%) than 98.70% of its industry peers.
  • In the last couple of years the Profit Margin of ATVI has grown nicely.
  • ATVI has a better Operating Margin (25.71%) than 98.70% of its industry peers.
  • In the last couple of years the Operating Margin of ATVI has grown nicely.
  • ATVI has a better Gross Margin (70.38%) than 87.01% of its industry peers.
  • ATVI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 25.71%
PM (TTM) 24.87%
GM 70.38%
OM growth 3Y-6.16%
OM growth 5Y3.49%
PM growth 3Y-4.62%
PM growth 5Y38.88%
GM growth 3Y1.34%
GM growth 5Y1.83%
ATVI Yearly Profit, Operating, Gross MarginsATVI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. ATVI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATVI is still creating some value.
  • The number of shares outstanding for ATVI has been increased compared to 1 year ago.
  • ATVI has a better debt/assets ratio than last year.
ATVI Yearly Shares OutstandingATVI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
ATVI Yearly Total Debt VS Total AssetsATVI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 7.56 indicates that ATVI is not in any danger for bankruptcy at the moment.
  • ATVI has a Altman-Z score of 7.56. This is amongst the best in the industry. ATVI outperforms 93.51% of its industry peers.
  • The Debt to FCF ratio of ATVI is 1.48, which is an excellent value as it means it would take ATVI, only 1.48 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ATVI (1.48) is better than 90.91% of its industry peers.
  • A Debt/Equity ratio of 0.17 indicates that ATVI is not too dependend on debt financing.
  • The Debt to Equity ratio of ATVI (0.17) is better than 64.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.48
Altman-Z 7.56
ROIC/WACC0.81
WACC9.47%
ATVI Yearly LT Debt VS Equity VS FCFATVI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.3 Liquidity

  • ATVI has a Current Ratio of 4.66. This indicates that ATVI is financially healthy and has no problem in meeting its short term obligations.
  • ATVI's Current ratio of 4.66 is amongst the best of the industry. ATVI outperforms 88.31% of its industry peers.
  • A Quick Ratio of 4.66 indicates that ATVI has no problem at all paying its short term obligations.
  • ATVI's Quick ratio of 4.66 is amongst the best of the industry. ATVI outperforms 88.31% of its industry peers.
Industry RankSector Rank
Current Ratio 4.66
Quick Ratio 4.66
ATVI Yearly Current Assets VS Current LiabilitesATVI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ATVI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 50.00% over the past year.
  • Measured over the past years, ATVI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.32% on average per year.
  • Looking at the last year, ATVI shows a quite strong growth in Revenue. The Revenue has grown by 13.88% in the last year.
  • Measured over the past years, ATVI shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
EPS 1Y (TTM)50%
EPS 3Y14.92%
EPS 5Y8.32%
EPS Q2Q%129.79%
Revenue 1Y (TTM)13.88%
Revenue growth 3Y5.08%
Revenue growth 5Y1.42%
Sales Q2Q%34.25%

3.2 Future

  • ATVI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.90% yearly.
  • The Revenue is expected to grow by 7.11% on average over the next years.
EPS Next Y26.69%
EPS Next 2Y15.13%
EPS Next 3Y12.41%
EPS Next 5Y8.9%
Revenue Next Year19.41%
Revenue Next 2Y10.08%
Revenue Next 3Y7.86%
Revenue Next 5Y7.11%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ATVI Yearly Revenue VS EstimatesATVI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B
ATVI Yearly EPS VS EstimatesATVI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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Find the best growth stocksShow best growing peers

6

4. ATVI Valuation Analysis

4.1 Price/Earnings Ratio

  • ATVI is valuated rather expensively with a Price/Earnings ratio of 22.32.
  • 84.42% of the companies in the same industry are more expensive than ATVI, based on the Price/Earnings ratio.
  • ATVI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.34.
  • With a Price/Forward Earnings ratio of 20.95, ATVI is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, ATVI is valued a bit cheaper than the industry average as 75.32% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.18, ATVI is valued a bit cheaper.
Industry RankSector Rank
PE 22.32
Fwd PE 20.95
ATVI Price Earnings VS Forward Price EarningsATVI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ATVI's Enterprise Value to EBITDA is on the same level as the industry average.
  • ATVI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATVI is cheaper than 80.52% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.35
EV/EBITDA 23.76
ATVI Per share dataATVI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

  • ATVI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of ATVI may justify a higher PE ratio.
  • A more expensive valuation may be justified as ATVI's earnings are expected to grow with 12.41% in the coming years.
PEG (NY)0.84
PEG (5Y)2.68
EPS Next 2Y15.13%
EPS Next 3Y12.41%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. ATVI Dividend Analysis

5.1 Amount

  • ATVI has a Yearly Dividend Yield of 1.05%.
  • ATVI's Dividend Yield is rather good when compared to the industry average which is at 9.59. ATVI pays more dividend than 93.51% of the companies in the same industry.
  • With a Dividend Yield of 1.05, ATVI pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.05%

5.2 History

  • On average, the dividend of ATVI grows each year by 9.32%, which is quite nice.
  • ATVI has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ATVI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.32%
Div Incr Years1
Div Non Decr Years13
ATVI Yearly Dividends per shareATVI Yearly Dividends per shareYearly Dividends per share 2016 2017 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8

5.3 Sustainability

  • ATVI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP0%
EPS Next 2Y15.13%
EPS Next 3Y12.41%
ATVI Yearly Income VS Free CF VS DividendATVI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

More info and screens

Find the best dividend stocksShow peers with best dividend

ATVI Fundamentals: All Metrics, Ratios and Statistics

ACTIVISION BLIZZARD INC

NASDAQ:ATVI (10/12/2023, 8:26:42 PM)

After market: 94.54 +0.12 (+0.13%)

94.42

-0.05 (-0.05%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)07-19
Earnings (Next)11-06
Inst Owners0%
Inst Owner Change0%
Ins Owners20.1%
Ins Owner Change0%
Market Cap74.29B
Revenue(TTM)8.71B
Net Income(TTM)2.17B
Analysts68.46
Price Target96.68 (2.39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.05%
Yearly Dividend0.47
Dividend Growth(5Y)9.32%
DP0%
Div Incr Years1
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.86%
Min EPS beat(2)14.06%
Max EPS beat(2)19.67%
EPS beat(4)4
Avg EPS beat(4)22.22%
Min EPS beat(4)14.06%
Max EPS beat(4)33.83%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)11.02%
Min Revenue beat(2)-8.61%
Max Revenue beat(2)30.65%
Revenue beat(4)2
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-27.58%
Max Revenue beat(4)30.65%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.03%
PT rev (3m)4.22%
EPS NQ rev (1m)2.28%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)0%
EPS NY rev (3m)10.04%
Revenue NQ rev (1m)99900%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.91%
Valuation
Industry RankSector Rank
PE 22.32
Fwd PE 20.95
P/S 8.53
P/FCF 30.35
P/OCF 29.17
P/B 3.57
P/tB 7.62
EV/EBITDA 23.76
EPS(TTM)4.23
EY4.48%
EPS(NY)4.51
Fwd EY4.77%
FCF(TTM)3.11
FCFY3.3%
OCF(TTM)3.24
OCFY3.43%
SpS11.07
BVpS26.43
TBVpS12.38
PEG (NY)0.84
PEG (5Y)2.68
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.59%
ROE 10.41%
ROCE 8.88%
ROIC 7.64%
ROICexc 15.98%
ROICexgc 192.53%
OM 25.71%
PM (TTM) 24.87%
GM 70.38%
FCFM 28.12%
ROA(3y)8.6%
ROA(5y)8.74%
ROE(3y)12.6%
ROE(5y)13.15%
ROIC(3y)10.28%
ROIC(5y)10.19%
ROICexc(3y)19.25%
ROICexc(5y)17.42%
ROICexgc(3y)231.4%
ROICexgc(5y)290.82%
ROCE(3y)11.95%
ROCE(5y)11.85%
ROICexgc growth 3Y2.43%
ROICexgc growth 5YN/A
ROICexc growth 3Y-3.08%
ROICexc growth 5Y2.37%
OM growth 3Y-6.16%
OM growth 5Y3.49%
PM growth 3Y-4.62%
PM growth 5Y38.88%
GM growth 3Y1.34%
GM growth 5Y1.83%
F-Score5
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.48
Debt/EBITDA 1.38
Cap/Depr 25.58%
Cap/Sales 1.14%
Interest Coverage 250
Cash Conversion 97.03%
Profit Quality 113.07%
Current Ratio 4.66
Quick Ratio 4.66
Altman-Z 7.56
F-Score5
WACC9.47%
ROIC/WACC0.81
Cap/Depr(3y)21.4%
Cap/Depr(5y)19.66%
Cap/Sales(3y)1.03%
Cap/Sales(5y)1.32%
Profit Quality(3y)108.71%
Profit Quality(5y)106%
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y14.92%
EPS 5Y8.32%
EPS Q2Q%129.79%
EPS Next Y26.69%
EPS Next 2Y15.13%
EPS Next 3Y12.41%
EPS Next 5Y8.9%
Revenue 1Y (TTM)13.88%
Revenue growth 3Y5.08%
Revenue growth 5Y1.42%
Sales Q2Q%34.25%
Revenue Next Year19.41%
Revenue Next 2Y10.08%
Revenue Next 3Y7.86%
Revenue Next 5Y7.11%
EBIT growth 1Y-4.81%
EBIT growth 3Y-1.4%
EBIT growth 5Y4.95%
EBIT Next Year27.57%
EBIT Next 3Y13.63%
EBIT Next 5Y12.47%
FCF growth 1Y-1.53%
FCF growth 3Y7.47%
FCF growth 5Y0.68%
OCF growth 1Y-0.82%
OCF growth 3Y6.63%
OCF growth 5Y0.06%

ACTIVISION BLIZZARD INC / ATVI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ACTIVISION BLIZZARD INC?

ChartMill assigns a fundamental rating of 7 / 10 to ATVI.


What is the valuation status of ACTIVISION BLIZZARD INC (ATVI) stock?

ChartMill assigns a valuation rating of 6 / 10 to ACTIVISION BLIZZARD INC (ATVI). This can be considered as Fairly Valued.


What is the profitability of ATVI stock?

ACTIVISION BLIZZARD INC (ATVI) has a profitability rating of 9 / 10.


What is the financial health of ACTIVISION BLIZZARD INC (ATVI) stock?

The financial health rating of ACTIVISION BLIZZARD INC (ATVI) is 8 / 10.


How sustainable is the dividend of ACTIVISION BLIZZARD INC (ATVI) stock?

The dividend rating of ACTIVISION BLIZZARD INC (ATVI) is 5 / 10 and the dividend payout ratio is 0%.