94.42 USD
-0.05 (-0.05%)
At close: Oct 12, 2023
94.54 USD
+0.12 (+0.13%)
After Hours: 10/12/2023, 8:26:42 PM
ATVI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. ATVI gets an excellent profitability rating and is at the same time showing great financial health properties. ATVI has a correct valuation and a medium growth rate. These ratings could make ATVI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year ATVI was profitable.
- ATVI had a positive operating cash flow in the past year.
1.2 Ratios
- The Return On Assets of ATVI (7.59%) is better than 88.31% of its industry peers.
- ATVI has a better Return On Equity (10.41%) than 87.01% of its industry peers.
- ATVI has a better Return On Invested Capital (7.64%) than 84.42% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ATVI is in line with the industry average of 8.74%.
| Industry Rank | Sector 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%
1.3 Margins
- ATVI's Profit Margin of 24.87% is amongst the best of the industry. ATVI outperforms 98.70% of its industry peers.
- ATVI's Profit Margin has improved in the last couple of years.
- ATVI's Operating Margin of 25.71% is amongst the best of the industry. ATVI outperforms 98.70% of its industry peers.
- ATVI's Operating Margin has improved in the last couple of years.
- ATVI has a Gross Margin of 70.38%. This is amongst the best in the industry. ATVI outperforms 87.01% of its industry peers.
- ATVI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- ATVI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, ATVI has more shares outstanding
- The debt/assets ratio for ATVI has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.56 indicates that ATVI is not in any danger for bankruptcy at the moment.
- ATVI's Altman-Z score of 7.56 is amongst the best of 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 7.56 |
ROIC/WACC0.81
WACC9.47%
2.3 Liquidity
- A Current Ratio of 4.66 indicates that ATVI has no problem at all paying its short term obligations.
- ATVI has a Current ratio of 4.66. This is amongst the best in 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.
- With an excellent Quick ratio value of 4.66, ATVI belongs to the best of the industry, outperforming 88.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 4.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 50.00% over the past year.
- ATVI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.32% yearly.
- The Revenue has grown by 13.88% in the past year. This is quite good.
- The Revenue has been growing slightly by 1.42% on average over the past years.
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
- Based on estimates for the next years, ATVI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.90% on average per year.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- ATVI is valuated rather expensively with a Price/Earnings ratio of 22.32.
- Compared to the rest of the industry, the Price/Earnings ratio of ATVI indicates a rather cheap valuation: ATVI is cheaper than 84.42% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.41, ATVI is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 20.95, ATVI is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ATVI indicates a somewhat cheap valuation: ATVI is cheaper than 75.32% of the companies listed in the same industry.
- ATVI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATVI.
- Based on the Price/Free Cash Flow ratio, ATVI is valued cheaply inside the industry as 80.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.35 | ||
| EV/EBITDA | 23.76 |
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.
- ATVI has a very decent profitability rating, which may justify a higher PE ratio.
- ATVI's earnings are expected to grow with 12.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)2.68
EPS Next 2Y15.13%
EPS Next 3Y12.41%
5. Dividend
5.1 Amount
- ATVI has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 7.59, ATVI pays a better dividend. On top of this ATVI pays more dividend than 93.51% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, ATVI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
- The dividend of ATVI is nicely growing with an annual growth rate of 9.32%!
- 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
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%
ACTIVISION BLIZZARD INC / ATVI 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.
Can you provide the profitability details for ACTIVISION BLIZZARD INC?
ACTIVISION BLIZZARD INC (ATVI) has a profitability rating of 9 / 10.
What is the valuation of ACTIVISION BLIZZARD INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ACTIVISION BLIZZARD INC (ATVI) is 22.32 and the Price/Book (PB) ratio is 3.57.
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%.