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.

Rewards

Earnings are forecast to grow 15.34% per year

Earnings grew by 182.3% over the past year

Risk Analysis

No risks detected for ATVI from our risk checks.


Snowflake Analysis

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

Stable Share Price: ATVI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

ATVI

-0.3%

US Entertainment

-0.09%

US Market


1 Year Return

25.8%

ATVI

23.0%

US Entertainment

23.9%

US Market

Return vs Industry: ATVI exceeded the US Entertainment industry which returned 21.9% over the past year.

Return vs Market: ATVI exceeded the US Market which returned 23.2% over the past year.


Shareholder returns

ATVIIndustryMarket
7 Day-1.8%-0.3%-0.09%
30 Day2.2%2.3%3.1%
90 Day8.8%12.7%10.4%
1 Year26.8%25.8%23.8%23.0%26.6%23.9%
3 Year54.8%51.8%57.9%52.8%50.9%41.2%
5 Year198.8%187.8%103.4%91.1%78.1%58.5%

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 compared to its fair value and its price relative to the market?

28.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATVI ($60.05) is trading above our estimate of fair value ($57.91)

Significantly Below Fair Value: ATVI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ATVI is poor value based on its PE Ratio (28.2x) compared to the Entertainment industry average (25.6x).

PE vs Market: ATVI is poor value based on its PE Ratio (28.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ATVI is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ATVI is overvalued based on its PB Ratio (3.8x) compared to the US Entertainment industry average (2.5x).


Next Steps

Future Growth

How is Activision Blizzard forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATVI's forecast earnings growth (15.3% per year) is above the savings rate (1.7%).

Earnings vs Market: ATVI's earnings (16% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: ATVI's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATVI's revenue (8.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: ATVI's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATVI's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Activision Blizzard performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATVI has high quality earnings.

Growing Profit Margin: ATVI's current net profit margins (23.7%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: ATVI's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: ATVI's earnings growth over the past year (182.3%) exceeds its 5-year average (12.1% per year).

Earnings vs Industry: ATVI earnings growth over the past year (182.3%) exceeded the Entertainment industry 8.8%.


Return on Equity

High ROE: ATVI's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Activision Blizzard's financial position?


Financial Position Analysis

Short Term Liabilities: ATVI's short term assets ($6.0B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: ATVI's short term assets ($6.0B) exceed its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: ATVI's debt to equity ratio (21.9%) is considered satisfactory.

Reducing Debt: ATVI's debt to equity ratio has reduced from 61.8% to 21.9% over the past 5 years.

Debt Coverage: ATVI's debt is well covered by operating cash flow (71.5%).

Interest Coverage: ATVI's interest payments on its debt are well covered by EBIT (140.4x coverage).


Balance Sheet

Inventory Level: ATVI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ATVI's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

0.62%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: ATVI's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ATVI's dividend (0.62%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: ATVI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ATVI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ATVI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATVI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Bobby Kotick (56yo)

28.9yrs

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

Compensation vs Market: Bobby's total compensation ($USD30.84M) is above average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Bobby's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

50yo

Average Age

Experienced Management: ATVI's management team is considered experienced (2 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

58yo

Average Age

Experienced Board: ATVI's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: ATVI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$199,23913 Nov 19
Collister Johnson
EntityIndividual
Role
President
President & COO
Shares3,800
Max PriceUS$52.43
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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bobby Kotick (56yo)

    CEO & Director

    • Tenure: 28.9yrs
    • Compensation: US$30.84m
  • Dennis Durkin (48yo)

    CFO & President of Emerging Businesses

    • Tenure: 1yrs
    • Compensation: US$5.80m
  • Chris Walther (52yo)

    Chief Legal Officer

    • Tenure: 10.2yrs
    • Compensation: US$4.76m
  • Chris Hickey

    Senior Vice President of Investor Relations

    • Stephen Wereb (54yo)

      Deputy CFO

      • Tenure: 9.3yrs
    • Brian Stolz (45yo)

      Special Advisor to CEO

      • Tenure: 0.4yrs
      • Compensation: US$3.53m
    • Jeffrey Brown

      Chief Compliance Officer & Corporate Secretary

      • Coddy Johnson (42yo)

        President & COO

        • Tenure: 2.6yrs
        • Compensation: US$8.17m
      • Kristin Binns

        Senior VP & Chief Communications Officer

        • Tenure: 1.5yrs
      • David Messinger

        Chief Marketing Officer

        • Tenure: 0.4yrs

      Board Members

      • Peter Nolan (60yo)

        Independent Director

        • Tenure: 6.3yrs
        • Compensation: US$347.96k
      • Bobby Kotick (56yo)

        CEO & Director

        • Tenure: 28.9yrs
        • Compensation: US$30.84m
      • Brian Kelly (56yo)

        Chairman of the Board

        • Tenure: 6.3yrs
        • Compensation: US$489.71k
      • Robert Corti (69yo)

        Independent Director

        • Tenure: 16.1yrs
        • Compensation: US$379.71k
      • Barry Meyer (75yo)

        Independent Director

        • Tenure: 6yrs
        • Compensation: US$345.21k
      • Henk Hartong (52yo)

        Independent Director

        • Tenure: 4.5yrs
        • Compensation: US$350.71k
      • Robert Morgado (76yo)

        Lead Independent Director

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

        Independent Director

        • Tenure: 6.3yrs
        • Compensation: US$345.21k
      • Casey Wasserman (44yo)

        Independent Director

        • Tenure: 4.5yrs
        • Compensation: US$345.21k
      • Riccardo Zacconi (52yo)

        Chairman of King Digital Limited

        • Tenure: 0.5yrs
        • 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$46.195b
      • Shares outstanding: 768.26m
      • 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
      AIYXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1983
      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
      AIYETLX (Eurotlx)YesCommon StockITEURJun 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 Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. It develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content. The company also maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games; and develops and publishes interactive entertainment content and services primarily on mobile platforms, such as Android and iOS, as well as distributes its content and services on the PC platform primarily through Facebook. In addition, it engages in creating original film and television content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. The company’s products include various genres, including first-person shooter, action/adventure, role-playing, strategy, and others. It serves retailers and distributors, including mass-market retailers, first party digital storefronts, consumer electronics stores, discount warehouses, and game specialty stores through third-party distribution and licensing arrangements in the United States, Australia, Brazil, Canada, China, France, Germany, Ireland, Italy, Japan, Malta, Mexico, the Netherlands, Romania, Singapore, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. The company was incorporated in 1979 and is headquartered in Santa Monica, California. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/24 00:42
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      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.