ACTIVISION BLIZZARD INC (ATVI) Stock Fundamental Analysis
USA - NASDAQ:ATVI - US00507V1098 - Common Stock
94.42 USD
-0.05 (-0.05%)
94.54 USD
+0.12 (+0.13%)
We assign a fundamental rating of 7 out of 10 to ATVI. ATVI was compared to 79 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.
Each year in the past 5 years ATVI has been profitable.
In the past 5 years ATVI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.59%, ATVI belongs to the best of the industry, outperforming 88.31% of the companies in the same industry.
ATVI has a better Return On Equity (10.41%) than 87.01% of its industry peers.
The Return On Invested Capital of ATVI (7.64%) is better 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 9.19%.
| 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
The Profit Margin of ATVI (24.87%) is better 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.
In the last couple of years the Gross Margin of ATVI has grown nicely.
| 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
ATVI has a better debt/assets ratio than last year.
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.
ATVI's Debt to FCF ratio of 1.48 is amongst the best of the industry. ATVI outperforms 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
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.
The Current ratio of ATVI (4.66) is better 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's Quick ratio of 4.66 is amongst the best of the industry. ATVI outperforms 88.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 4.66 |
3. Growth
3.1 Past
ATVI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
ATVI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.32% yearly.
Looking at the last year, ATVI shows a quite strong growth in Revenue. The Revenue has grown by 13.88% in the last year.
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.
ATVI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.11% yearly.
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
Based on the Price/Earnings ratio of 22.32, the valuation of ATVI can be described as rather expensive.
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.
When comparing the Price/Earnings ratio of ATVI to the average of the S&P500 Index (25.83), we can say ATVI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.95, the valuation of ATVI can be described as rather expensive.
75.32% of the companies in the same industry are more expensive than ATVI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ATVI to the average of the S&P500 Index (32.68), we can say ATVI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
ATVI's Enterprise Value to EBITDA is on the same level as the industry average.
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 an outstanding profitability rating, which 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%
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.
ATVI's Dividend Yield is rather good when compared to the industry average which is at 38.17. ATVI pays more dividend than 93.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ATVI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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
5.3 Sustainability
The dividend of ATVI is growing, but the earnings are growing slower. 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)
Earnings (Next)
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.
Can you provide the valuation status for ACTIVISION BLIZZARD INC?
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.
Can you provide the PE and PB ratios for ATVI stock?
The Price/Earnings (PE) ratio for ACTIVISION BLIZZARD INC (ATVI) is 22.32 and the Price/Book (PB) ratio is 3.57.
Can you provide the financial health for ATVI stock?
The financial health rating of ACTIVISION BLIZZARD INC (ATVI) is 8 / 10.