94.42 USD
-0.05 (-0.05%)
94.54 USD
+0.12 (+0.13%)
ATVI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making ATVI a very profitable company, without any liquidiy or solvency issues. ATVI has a decent growth rate and is not valued too expensively. With these ratings, ATVI could be worth investigating further 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
- ATVI's Return On Assets of 7.59% is amongst the best of the industry. ATVI outperforms 88.31% of its industry peers.
- ATVI has a better Return On Equity (10.41%) than 87.01% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.64%, ATVI belongs to the top of the industry, outperforming 84.42% of the companies in the same industry.
- ATVI had an Average Return On Invested Capital over the past 3 years of 10.28%. This 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 has a better Profit Margin (24.87%) than 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.
- In the last couple of years the Operating Margin of ATVI has grown nicely.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATVI 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
- 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.
- Looking at the Altman-Z score, with a value of 7.56, ATVI belongs to the top of the industry, outperforming 93.51% of the companies in the same industry.
- 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.
- 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
- 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 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 Quick ratio of 4.66. This is amongst the best in 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.
- 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
- 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.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 22.32, the valuation of ATVI can be described as rather expensive.
- Based on the Price/Earnings ratio, ATVI is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of ATVI to the average of the S&P500 Index (27.25), we can say ATVI is valued inline with the index average.
- The Price/Forward Earnings ratio is 20.95, which indicates a rather expensive current valuation of ATVI.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ATVI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATVI is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, ATVI is valued cheaper than 80.52% of the companies 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.
- 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%.
- Compared to an average industry Dividend Yield of 7.58, 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 1.82, 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 their dividend for at least 10 years, which is a reliable track record.
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%.