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. 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. 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.
1.2 Ratios
- The Return On Assets of ATVI (7.59%) is better than 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 has a Return On Invested Capital of 7.64%. This is amongst the best in 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 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.
- 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.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATVI is still creating some value.
- The number of shares outstanding for ATVI has been increased compared to 1 year ago.
- ATVI has a better debt/assets ratio than last year.
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.
- ATVI's Altman-Z score of 7.56 is amongst the best of the industry. ATVI outperforms 93.51% of its industry peers.
- 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.
- ATVI has a Debt to FCF ratio of 1.48. This is amongst the best in 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.
- 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 has a better Quick ratio (4.66) than 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.
- 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.
- The Revenue has grown by 13.88% in the past year. This is quite good.
- ATVI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.42% yearly.
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
- 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
- A Price/Earnings ratio of 22.32 indicates a rather expensive valuation of ATVI.
- 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 (28.82), we can say ATVI is valued slightly cheaper.
- ATVI is valuated rather expensively with a Price/Forward Earnings ratio of 20.95.
- 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.
- When comparing the Price/Forward Earnings ratio of ATVI to the average of the S&P500 Index (25.95), we can say ATVI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- ATVI's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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 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.
- 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%
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 7.58. 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 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
- 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%.