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
We assign a fundamental rating of 7 out of 10 to ATVI. ATVI was compared to 80 industry peers in the Entertainment industry. ATVI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ATVI has a decent growth rate and is not valued too expensively. This makes ATVI very considerable 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
- ATVI has a Return On Assets of 7.59%. This is amongst the best in the industry. ATVI outperforms 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's Return On Invested Capital of 7.64% is amongst the best of the industry. ATVI outperforms 84.42% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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 has a Profit Margin of 24.87%. This is amongst the best in the industry. ATVI outperforms 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.
- In the last couple of years the Operating Margin of ATVI has grown nicely.
- With an excellent Gross Margin value of 70.38%, ATVI belongs to the best of the industry, outperforming 87.01% of the companies in the same industry.
- 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.
- ATVI has more shares outstanding than it did 1 year ago.
- 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'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.
- With an excellent Debt to FCF ratio value of 1.48, ATVI belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- 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.
- With an excellent Current ratio value of 4.66, ATVI belongs to the best of the industry, outperforming 88.31% of the companies in the same industry.
- 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 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
- The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
- 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.
- 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.
- Based on the Price/Earnings ratio, ATVI is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, ATVI is valued a bit cheaper.
- The Price/Forward Earnings ratio is 20.95, which indicates a rather expensive current valuation of ATVI.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. 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 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
- The 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%. Purely for dividend investing, there may be better candidates out there.
- 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.
- With a Dividend Yield of 1.05, ATVI pays less dividend than the S&P500 average, which is at 1.82.
| 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
- 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%
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%.