ACTIVISION BLIZZARD INC (ATVI) Stock Fundamental Analysis
NASDAQ:ATVI - Nasdaq - US00507V1098 - Common Stock - Currency: USD
ATVI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Entertainment industry. ATVI gets an excellent profitability rating and is at the same time showing great financial health properties. 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
ATVI had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.59%, ATVI belongs to the top of the industry, outperforming 88.31% of the companies in the same industry.
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.
ATVI had an Average Return On Invested Capital over the past 3 years of 10.28%. This is significantly below the industry average of 94.23%.
| 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.
ATVI's Profit Margin has improved in the last couple of years.
ATVI has a Operating Margin of 25.71%. This is amongst the best in the industry. ATVI outperforms 98.70% of its industry peers.
ATVI's Operating Margin has improved in the last couple of years.
ATVI has a better Gross Margin (70.38%) than 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
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.
Compared to 1 year ago, ATVI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.56 indicates that ATVI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.56, ATVI belongs to the best of the industry, outperforming 93.51% of the companies in the same industry.
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.
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 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.
The Current ratio of ATVI (4.66) is better than 88.31% of its industry peers.
A Quick Ratio of 4.66 indicates that ATVI has no problem at all paying 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 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.
Measured over the past years, ATVI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.32% on average per year.
Looking at the last year, ATVI shows a quite strong growth in Revenue. The Revenue has grown by 13.88% in the last year.
Measured over the past years, ATVI shows a small growth in Revenue. The Revenue has been growing by 1.42% on average per year.
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.
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.
ATVI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.99.
A Price/Forward Earnings ratio of 20.95 indicates a rather expensive valuation of ATVI.
Based on the Price/Forward Earnings ratio, ATVI is valued a bit cheaper than 75.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATVI to the average of the S&P500 Index (96.58), we can say ATVI is valued rather cheaply.
| 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.
ATVI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATVI is 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 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
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 3.69. ATVI pays more dividend than 93.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ATVI's dividend is way lower than the S&P500 average.
| 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 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
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 SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change-99.99%
Ins Owners20.1%
Ins Owner Change0%
Market Cap74.29B
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
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%
ROICexcg growth 3Y2.43%
ROICexcg 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%