94.42 USD
-0.05 (-0.05%)
94.54 USD
+0.12 (+0.13%)
Overall ATVI gets a fundamental rating of 7 out of 10. We evaluated ATVI against 80 industry peers in the Entertainment industry. ATVI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ATVI has a correct valuation and a medium growth rate. These ratings would make ATVI suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year ATVI was profitable.
- In the past year ATVI had a positive cash flow from operations.
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.
- ATVI has a Return On Invested Capital of 7.64%. This is amongst the best in the industry. ATVI outperforms 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 8.70%.
| 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 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'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's Gross Margin of 70.38% is amongst the best of 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATVI is still creating some value.
- ATVI has more shares outstanding than it did 1 year ago.
- ATVI has a better debt/assets ratio than last year.
2.2 Solvency
- ATVI has an Altman-Z score of 7.56. This indicates that ATVI is financially healthy and has little risk of bankruptcy at the moment.
- ATVI has a better Altman-Z score (7.56) than 93.51% of its industry peers.
- ATVI has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
- The Debt to FCF ratio of ATVI (1.48) is better than 90.91% of its industry peers.
- ATVI has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.17, ATVI is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
| 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 better Current ratio (4.66) than 88.31% of its industry peers.
- ATVI has a Quick Ratio of 4.66. This indicates that ATVI is financially healthy and has no problem in meeting its short term obligations.
- ATVI has a better Quick ratio (4.66) than 88.31% of its industry peers.
| 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.
- ATVI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.88%.
- 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.
- Based on estimates for the next years, ATVI will show a small growth in Revenue. The Revenue will grow by 7.11% on average per year.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.32, ATVI is valued on the expensive side.
- ATVI's Price/Earnings ratio is rather cheap when compared to the industry. ATVI is cheaper than 84.42% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, ATVI is valued at the same level.
- A Price/Forward Earnings ratio of 20.95 indicates a rather expensive valuation of ATVI.
- ATVI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATVI is cheaper than 75.32% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, ATVI is valued at the same level.
| 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATVI indicates a rather cheap valuation: ATVI is cheaper than 80.52% of the companies listed in the same industry.
| 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 8.69, ATVI pays a better dividend. On top of this ATVI pays more dividend than 93.51% of the companies listed in the same industry.
- With a Dividend Yield of 1.05, ATVI pays less dividend than the S&P500 average, which is at 1.91.
| 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 paid a dividend for at least 10 years, which is 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%
94.42
-0.05 (-0.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)07-19 2023-07-19/bmo
Earnings (Next)11-06 2023-11-06/amc
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 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%.