NasdaqGS:ATVI

Stock Analysis Report

Executive Summary

Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Activision Blizzard's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

NasdaqGS:ATVI

-1.1%

US Entertainment

-0.7%

US Market


1 Year Return

-32.3%

NasdaqGS:ATVI

5.1%

US Entertainment

-0.5%

US Market

ATVI underperformed the Entertainment industry which returned 5.3% over the past year.

ATVI underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

ATVIIndustryMarket
7 Day-0.9%-1.1%-0.7%
30 Day3.4%-1.4%-3.0%
90 Day7.4%-1.1%0.9%
1 Year-31.8%-32.3%5.8%5.1%1.7%-0.5%
3 Year18.6%16.3%63.1%57.7%39.5%30.4%
5 Year110.3%102.5%85.3%73.8%54.1%37.0%

Price Volatility Vs. Market

How volatile is Activision Blizzard's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Activision Blizzard undervalued based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Activision Blizzard's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Activision Blizzard's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Activision Blizzard is good value based on earnings compared to the US Entertainment industry average.

Activision Blizzard is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Activision Blizzard is poor value based on expected growth next year.


Price Based on Value of Assets

Activision Blizzard is overvalued based on assets compared to the US Entertainment industry average.


Next Steps

Future Growth

How is Activision Blizzard expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Activision Blizzard's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

Activision Blizzard's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).

Activision Blizzard's revenue growth is expected to exceed the United States of America market average.

Activision Blizzard's earnings growth is positive but not above the United States of America market average.

Activision Blizzard's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Activision Blizzard is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Activision Blizzard performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Activision Blizzard's year on year earnings growth rate has been positive over the past 5 years.

Activision Blizzard's 1-year earnings growth exceeds its 5-year average (233% vs 10.2%)

Activision Blizzard's earnings growth has exceeded the US Entertainment industry average in the past year (233% vs 31.1%).


Return on Equity

Activision Blizzard has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Activision Blizzard used its assets more efficiently than the US Entertainment industry average last year based on Return on Assets.


Return on Capital Employed

Activision Blizzard has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Activision Blizzard's financial position?


Financial Position Analysis

Activision Blizzard is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Activision Blizzard's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Activision Blizzard's level of debt (22.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (60.3% vs 22.3% today).

Debt is well covered by operating cash flow (69.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 69.8x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

What is Activision Blizzard's current dividend yield, its reliability and sustainability?

0.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Activision Blizzard's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Activision Blizzard's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Activision Blizzard is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Activision Blizzard is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Activision Blizzard's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (7.9x coverage).


Next Steps

Management

What is the CEO of Activision Blizzard's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Bobby Kotick (56yo)

28.5yrs

Tenure

US$30,841,004

Compensation

Mr. Robert A. Kotick, also known as Bobby, has been the Chief Executive Officer at Activision Blizzard, Inc. since February 1991 and served as its President from July 2008 to June 26, 2017. Mr. Kotick is t ...


CEO Compensation Analysis

Bobby's remuneration is higher than average for companies of similar size in United States of America.

Bobby's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.5yrs

Average Tenure

50yo

Average Age

The average tenure for the Activision Blizzard management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.8yrs

Average Tenure

58yo

Average Age

The tenure for the Activision Blizzard board of directors is about average.


Insider Trading

Activision Blizzard individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$438,66015 Aug 19
Stephen Wereb
EntityIndividual
Role
Chief Accounting Officer
Deputy CFO
Shares9,144
Max PriceUS$47.97
BuyUS$4,295,47014 Mar 19
Peter Nolan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$42.95
BuyUS$7,80215 Feb 19
Dennis Durkin
EntityIndividual
Role
Chief Financial Officer
CFO & President of Emerging Businesses
Shares120
Max PriceUS$81.48
SellUS$12,97515 Feb 19
Dennis Durkin
EntityIndividual
Role
Chief Financial Officer
CFO & President of Emerging Businesses
Shares240
Max PriceUS$70.57
SellUS$256,20320 Aug 18
Riccardo Zacconi
EntityIndividual
Role
Unit Chairman
Chairman of King Digital Limited
Shares3,729
Max PriceUS$68.71

Ownership Breakdown


Management Team

  • Bobby Kotick (56yo)

    CEO & Director

    • Tenure: 28.5yrs
    • Compensation: US$30.84m
  • Dennis Durkin (48yo)

    CFO & President of Emerging Businesses

    • Tenure: 0.6yrs
    • Compensation: US$5.80m
  • Chris Walther (52yo)

    Chief Legal Officer

    • Tenure: 9.8yrs
    • Compensation: US$4.76m
  • Chris Hickey

    Senior Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Stephen Wereb (54yo)

    Deputy CFO

    • Tenure: 8.8yrs
  • Brian Stolz (45yo)

    Special Advisor to CEO

    • Tenure: 0.0yrs
    • Compensation: US$3.53m
  • Jeffrey Brown

    Chief Compliance Officer & Corporate Secretary

    • Tenure: 0.0yrs
  • Coddy Johnson (42yo)

    President & COO

    • Tenure: 2.2yrs
    • Compensation: US$8.17m
  • Kristin Binns

    Senior VP & Chief Communications Officer

    • Tenure: 1.1yrs
  • Claudine Naughton

    Chief People Officer

    • Tenure: 0.0yrs

Board Members

  • Peter Nolan (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$347.96k
  • Bobby Kotick (56yo)

    CEO & Director

    • Tenure: 28.5yrs
    • Compensation: US$30.84m
  • Brian Kelly (56yo)

    Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: US$489.71k
  • Robert Corti (69yo)

    Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$379.71k
  • Barry Meyer (75yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$345.21k
  • Henk Hartong (52yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$350.71k
  • Robert Morgado (76yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$448.55k
  • Elaine Wynn (76yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$345.21k
  • Casey Wasserman (44yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$345.21k
  • Riccardo Zacconi (52yo)

    Chairman of King Digital Limited

    • Tenure: 0.1yrs
    • Compensation: US$19.82m

Company Information

Activision Blizzard, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Activision Blizzard, Inc.
  • Ticker: ATVI
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$35.789b
  • Shares outstanding: 767.03m
  • Website: https://www.activisionblizzard.com

Number of Employees


Location

  • Activision Blizzard, Inc.
  • 3100 Ocean Park Boulevard
  • Santa Monica
  • California
  • 90405
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATVINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1983
AIYDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1983
ATVI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1983
AIYSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 1983
ATVIWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1983
0H8XLSE (London Stock Exchange)YesCommon StockGBUSDJun 1983
ATVI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.000001BRBRLMay 2019

Biography

Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:17
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.