ACTIVISION BLIZZARD INC (ATVI) Stock Fundamental Analysis

NASDAQ:ATVI • US00507V1098

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
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Taking everything into account, ATVI scores 7 out of 10 in our fundamental rating. ATVI was compared to 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 is not valued too expensively and it also shows a decent growth rate. This makes ATVI very considerable for quality investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year ATVI was profitable.
  • ATVI had a positive operating cash flow in the past year.
ATVI Yearly Net Income VS EBIT VS OCF VS FCFATVI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

1.2 Ratios

  • ATVI has a better Return On Assets (7.59%) than 88.31% of its industry peers.
  • With an excellent Return On Equity value of 10.41%, ATVI belongs to the best of the industry, outperforming 87.01% of the companies in the same industry.
  • 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 above the industry average of 7.77%.
Industry RankSector 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%
ATVI Yearly ROA, ROE, ROICATVI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 5 10 15

1.3 Margins

  • With an excellent Profit Margin value of 24.87%, ATVI belongs to the best of the industry, outperforming 98.70% of the companies in the same industry.
  • 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 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 RankSector 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%
ATVI Yearly Profit, Operating, Gross MarginsATVI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • Compared to 1 year ago, ATVI has more shares outstanding
  • Compared to 1 year ago, ATVI has an improved debt to assets ratio.
ATVI Yearly Shares OutstandingATVI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
ATVI Yearly Total Debt VS Total AssetsATVI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 7.56 indicates that ATVI is not in any danger for 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.
  • ATVI has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.17, ATVI is doing good in the industry, outperforming 64.94% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 1.48
Altman-Z 7.56
ROIC/WACC0.81
WACC9.47%
ATVI Yearly LT Debt VS Equity VS FCFATVI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

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 Current ratio of 4.66. This is amongst the best in the industry. ATVI outperforms 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.
  • 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 RankSector Rank
Current Ratio 4.66
Quick Ratio 4.66
ATVI Yearly Current Assets VS Current LiabilitesATVI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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.
  • The Earnings Per Share has been growing by 8.32% on average over the past years. This is quite good.
  • 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.
  • 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.
ATVI Yearly Revenue VS EstimatesATVI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B
ATVI Yearly EPS VS EstimatesATVI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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Find the best growth stocksShow best growing peers

6

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.
  • ATVI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 20.95, ATVI is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, ATVI is valued a bit cheaper than 75.32% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, ATVI is valued a bit cheaper.
Industry RankSector Rank
PE 22.32
Fwd PE 20.95
ATVI Price Earnings VS Forward Price EarningsATVI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 RankSector Rank
P/FCF 30.35
EV/EBITDA 23.76
ATVI Per share dataATVI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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.
  • The decent profitability rating of ATVI 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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.05%, ATVI has a reasonable but not impressive dividend return.
  • ATVI's Dividend Yield is rather good when compared to the industry average which is at 7.46. ATVI pays more dividend than 93.51% of the companies 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 RankSector 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
ATVI Yearly Dividends per shareATVI Yearly Dividends per shareYearly Dividends per share 2016 2017 2019 2020 2021 2022 2023 0.2 0.4 0.6 0.8

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%
ATVI Yearly Income VS Free CF VS DividendATVI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

More info and screens

Find the best dividend stocksShow peers with best dividend

ACTIVISION BLIZZARD INC

NASDAQ:ATVI (10/12/2023, 8:26:42 PM)

After market: 94.54 +0.12 (+0.13%)

94.42

-0.05 (-0.05%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)07-19
Earnings (Next)11-06
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%.