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ATVI

Activision Blizzard NasdaqGS:ATVI Stock Report

Last Price

US$78.87

Market Cap

US$61.7b

7D

2.2%

1Y

-16.5%

Updated

05 Jul, 2022

Data

Company Financials +
ATVI fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

ATVI Stock Overview

Activision Blizzard, Inc., together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Activision Blizzard Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Activision Blizzard
Historical stock prices
Current Share PriceUS$78.87
52 Week HighUS$95.27
52 Week LowUS$56.40
Beta0.55
1 Month Change1.26%
3 Month Change-1.55%
1 Year Change-16.45%
3 Year Change70.09%
5 Year Change36.03%
Change since IPO396.51%

Recent News & Updates

Jul 01

Activision Blizzard closes acquisition of Proletariat

Blizzard Entertainment has closed the acquisition of Boston-based studio Proletariat to better serve players in the award-winning massive multiplayer online role-playing game World of Warcraft. Proletariat will join forces with Blizzard Entertainment as they work together to further serve the player community. This acquisition comes as Blizzard Entertainment expands development resources, invests in the growth of key franchises. "Over the next two years we plan to hire hundreds of the best developers to serve the needs of our World of Warcraft players. The extraordinary team at Proletariat will be a key component of our talent acquisition efforts,” said Bobby Kotick, CEO of Activision Blizzard (NASDAQ:ATVI).

Jun 21

Buy Activision Blizzard Because Microsoft Deal Will Likely Close

Activision's stock languishes 22% below Microsoft's bid $95 per share on FTC probe. A look at 2020 Vertical Merger Guidelines indicates that the deal will go through. The 30% upside from the merger arbitrage is attractive given current market volatility.

May 20

Activision Stock Forecast: Will The Price Go Up Or Fall In 2022?

Activision Blizzard is a fundamentally strong company with great brands. But in 2022, it faces tough comparables and will not report great results. There is a good chance that the takeover by Microsoft will close, which would result in a very solid 20%+ gain, although that might take as much as a year.

Shareholder Returns

ATVIUS EntertainmentUS Market
7D2.2%-2.5%-2.2%
1Y-16.5%-52.8%-19.1%

Return vs Industry: ATVI exceeded the US Entertainment industry which returned -52.8% over the past year.

Return vs Market: ATVI exceeded the US Market which returned -19.1% over the past year.

Price Volatility

Is ATVI's price volatile compared to industry and market?
ATVI volatility
ATVI Average Weekly Movement2.1%
Entertainment Industry Average Movement12.4%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: ATVI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ATVI's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a9,800Bobby Kotickhttps://www.activisionblizzard.com

Activision Blizzard, Inc., together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Activision, Blizzard, and King. It develops and distributes content and services on video game consoles, personal computers, and mobile devices, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision and Blizzard products.

Activision Blizzard Fundamentals Summary

How do Activision Blizzard's earnings and revenue compare to its market cap?
ATVI fundamental statistics
Market CapUS$61.67b
Earnings (TTM)US$2.48b
Revenue (TTM)US$8.30b

24.9x

P/E Ratio

7.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATVI income statement (TTM)
RevenueUS$8.30b
Cost of RevenueUS$2.22b
Gross ProfitUS$6.08b
Other ExpensesUS$3.60b
EarningsUS$2.48b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.17
Gross Margin73.26%
Net Profit Margin29.83%
Debt/Equity Ratio20.2%

How did ATVI perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

15%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ATVI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ATVI?

Other financial metrics that can be useful for relative valuation.

ATVI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.5x
Enterprise Value/EBITDA17.3x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does ATVI's PE Ratio compare to its peers?

ATVI PE Ratio vs Peers
The above table shows the PE ratio for ATVI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average32.6x
NTES NetEase
22.9x13.3%US$57.3b
EA Electronic Arts
44.2x19.1%US$34.8b
TTWO Take-Two Interactive Software
47.5x25.5%US$19.9b
PLTK Playtika Holding
16x14.6%US$5.7b
ATVI Activision Blizzard
24.9x15.0%US$61.7b

Price-To-Earnings vs Peers: ATVI is good value based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (32.6x).


Price to Earnings Ratio vs Industry

How does ATVI's PE Ratio compare vs other companies in the US Entertainment Industry?

Price-To-Earnings vs Industry: ATVI is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the US Entertainment industry average (23.7x)


Price to Earnings Ratio vs Fair Ratio

What is ATVI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ATVI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.9x
Fair PE Ratio28.4x

Price-To-Earnings vs Fair Ratio: ATVI is good value based on its Price-To-Earnings Ratio (24.9x) compared to the estimated Fair Price-To-Earnings Ratio (28.4x).


Share Price vs Fair Value

What is the Fair Price of ATVI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATVI ($78.87) is trading below our estimate of fair value ($126.56)

Significantly Below Fair Value: ATVI is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: ATVI is poor value based on its PEG Ratio (1.7x)


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Future Growth

How is Activision Blizzard forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATVI's forecast earnings growth (15% per year) is above the savings rate (1.9%).

Earnings vs Market: ATVI's earnings (15% per year) are forecast to grow faster than the US market (12.8% per year).

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

Revenue vs Market: ATVI's revenue (13% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: ATVI's revenue (13% 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 (13.8%).


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Past Performance

How has Activision Blizzard performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATVI has high quality earnings.

Growing Profit Margin: ATVI's current net profit margins (29.8%) are higher than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: ATVI's earnings have grown significantly by 26.7% per year over the past 5 years.

Accelerating Growth: ATVI's earnings growth over the past year (7.1%) is below its 5-year average (26.7% per year).

Earnings vs Industry: ATVI earnings growth over the past year (7.1%) exceeded the Entertainment industry 0.3%.


Return on Equity

High ROE: ATVI's Return on Equity (13.9%) is considered low.


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Financial Health

How is Activision Blizzard's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ATVI's short term assets ($12.5B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: ATVI's short term assets ($12.5B) exceed its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: ATVI has more cash than its total debt.

Reducing Debt: ATVI's debt to equity ratio has reduced from 46.5% to 20.2% over the past 5 years.

Debt Coverage: ATVI's debt is well covered by operating cash flow (61.3%).

Interest Coverage: ATVI's interest payments on its debt are well covered by EBIT (29.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.60%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ATVI's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: ATVI's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (4.24%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Bobby Kotick (59 yo)

31.42yrs

Tenure

US$826,549

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 ($USD826.55K) is below average for companies of similar size in the US market ($USD13.41M).

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


Leadership Team

Experienced Management: ATVI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: ATVI's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Activision Blizzard, Inc.
  • Ticker: ATVI
  • Exchange: NasdaqGS
  • Founded: NaN
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Implied Market Cap: US$61.667b
  • Shares outstanding: 781.88m
  • Website: https://www.activisionblizzard.com

Number of Employees


Location

  • Activision Blizzard, Inc.
  • 2701 Olympic Boulevard Building B
  • Santa Monica
  • California
  • 90404
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.