ACTIVISION BLIZZARD INC (ATVI) Fundamental Analysis & Valuation

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 Forecast Earnings Financials Ownership News

This ATVI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

7

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 correct valuation and a medium growth rate. With these ratings, ATVI could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

7

1. ATVI Profitability Analysis

1.1 Basic Checks

  • ATVI had positive earnings in the past year.
  • In the past year ATVI had a positive cash flow from operations.
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.
  • The Return On Equity of ATVI (10.41%) is better than 87.01% of its industry peers.
  • With an excellent Return On Invested Capital value of 7.64%, ATVI belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ATVI is above the industry average of 7.34%.
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

  • The Profit Margin of ATVI (24.87%) is better than 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.
  • Looking at the Gross Margin, with a value of 70.38%, ATVI belongs to the top of the industry, outperforming 87.01% of the companies in the same industry.
  • 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. ATVI Health Analysis

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.
  • ATVI has more shares outstanding than it did 1 year ago.
  • 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.
  • ATVI has a better Altman-Z score (7.56) than 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 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

  • A Current Ratio of 4.66 indicates that ATVI has no problem at all paying its short term obligations.
  • ATVI's Current ratio of 4.66 is amongst the best of the industry. ATVI outperforms 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.
  • The Quick ratio of ATVI (4.66) is better than 88.31% of its industry peers.
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. ATVI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 50.00% over the past year.
  • The Earnings Per Share has been growing by 8.32% on average over the past years. This is quite good.
  • Looking at the last year, ATVI shows a quite strong growth in Revenue. The Revenue has grown by 13.88% in the last year.
  • 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.
  • The Revenue is expected to grow by 7.11% on average over the next years.
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.
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

5

4. ATVI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.32, ATVI is valued on the expensive side.
  • ATVI's Price/Earnings ratio is rather cheap when compared to the industry. ATVI is cheaper than 84.42% of the companies in the same industry.
  • ATVI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
  • ATVI is valuated rather expensively with a Price/Forward Earnings ratio of 20.95.
  • 75.32% of the companies in the same industry are more expensive than ATVI, based on the Price/Forward Earnings ratio.
  • ATVI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.65, which is the current average of the S&P500 Index.
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 10 20 30 40

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.
  • 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.
  • 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%

More info and screens

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

5

5. ATVI Dividend Analysis

5.1 Amount

  • ATVI has a Yearly Dividend Yield of 1.05%.
  • Compared to an average industry Dividend Yield of 7.42, 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 RankSector 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 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
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

ATVI Fundamentals: All Metrics, Ratios and Statistics

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%.