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ATVI

Activision BlizzardNasdaqGS:ATVI Stock Report

Last Price

US$81.35

Market Cap

US$63.4b

7D

24.4%

1Y

-13.9%

Updated

22 Jan, 2022

Data

Company Financials +
ATVI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
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

NetEase

NasdaqGS:NTES

US$63.1b

Roblox

NYSE:RBLX

US$39.9b

Zynga

NasdaqGS:ZNGA

US$10.2b

Playtika Holding

NasdaqGS:PLTK

US$7.4b

Price History & Performance

Summary of all time highs, changes and price drops for Activision Blizzard
Historical stock prices
Current Share PriceUS$81.35
52 Week HighUS$104.53
52 Week LowUS$56.40
Beta0.70
1 Month Change24.85%
3 Month Change2.62%
1 Year Change-13.85%
3 Year Change70.19%
5 Year Change105.38%
Change since IPO412.12%

Recent News & Updates

Jan 18

Microsoft Takes Out Activision: Everything You Need To Know

Microsoft will acquire Activision Blizzard for $95 per share. This makes for a hefty premium compared to where ATVI traded in recent months, but ATVI traded at higher prices one year ago. This deal makes a lot of sense for MSFT, as it will be accretive while there is also a strategic rationale to get gaming IP.

Jan 04

Activision Blizzard: Growth At A Reasonable Price And An Opportunity To Buy The Dip

For investors looking for exposure to the gaming industry at a reasonable valuation, Activision is a logical choice. All three segments of Activision have operating margins over 40%. Activision was in the news for the wrong reasons in 2021, causing a significant selloff in the second half of the year. I detail some of the options investors have with options. Activision has a rock-solid balance sheet and is set up for continued double-digit dividend growth moving forward.

Dec 23
Activision Blizzard's (NASDAQ:ATVI) Growth Prospects Have Shrunk

Activision Blizzard's (NASDAQ:ATVI) Growth Prospects Have Shrunk

Despite favorable sector developments, Activision Blizzard, Inc. (NASDAQ: ATVI) had a lackluster year as the stock declined by over 30%. Plagued by delays and scandals, the stock does look undervalued at the moment – at least for those who believe in management turnarounds.

Dec 22

Activision Blizzard: A Giant Of The Gaming Industry

An essential internal driver is the King Entertainment division, which appeared only in 2016, and today generates 30% of Activision's revenue and continues to grow. Potentially, with current revenue, a reduction in cash will increase asset turnover from 0.4 to 0.66 and an increase in ROA to 18%. ATVI has a low debt burden; the potential growth of the asset-to-equity ratio to 2 will lead to an increase in ROE by 8 p.p. According to our valuation, the company is trading at a discount to the fair price.

Dec 21
Is Activision Blizzard (NASDAQ:ATVI) Using Too Much Debt?

Is Activision Blizzard (NASDAQ:ATVI) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

ATVIUS EntertainmentUS Market
7D24.4%-10.3%-6.1%
1Y-13.9%-32.5%4.2%

Return vs Industry: ATVI exceeded the US Entertainment industry which returned -32.5% over the past year.

Return vs Market: ATVI underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is ATVI's price volatile compared to industry and market?
ATVI volatility
ATVI Average Weekly Movement9.3%
Entertainment Industry Average Movement10.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: ATVI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ATVI's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a9,500Bobby 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 Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. 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$63.36b
Earnings (TTM)US$2.64b
Revenue (TTM)US$9.05b

24.0x

P/E Ratio

7.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATVI income statement (TTM)
RevenueUS$9.05b
Cost of RevenueUS$2.48b
Gross ProfitUS$6.58b
ExpensesUS$3.93b
EarningsUS$2.64b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)3.39
Gross Margin72.65%
Net Profit Margin29.21%
Debt/Equity Ratio21.3%

How did ATVI perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

14%

Payout Ratio

Valuation

Is Activision Blizzard undervalued compared to its fair value and its price relative to the market?

23.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATVI ($81.35) is trading below our estimate of fair value ($106.5)

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


Price To Earnings Ratio

PE vs Industry: ATVI is good value based on its PE Ratio (24x) compared to the US Entertainment industry average (32x).

PE vs Market: ATVI is poor value based on its PE Ratio (24x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ATVI is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: ATVI is overvalued based on its PB Ratio (3.7x) compared to the US Entertainment industry average (2.2x).


Future Growth

How is Activision Blizzard forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATVI's forecast earnings growth (5.6% per year) is above the savings rate (2%).

Earnings vs Market: ATVI's earnings (5.6% per year) are forecast to grow slower than the US market (12.9% per year).

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

Revenue vs Market: ATVI's revenue (10% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: ATVI's revenue (10% 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 (13.6%).


Past Performance

How has Activision Blizzard performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATVI has high quality earnings.

Growing Profit Margin: ATVI's current net profit margins (29.2%) are higher than last year (28.9%).


Past Earnings Growth Analysis

Earnings Trend: ATVI's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: ATVI's earnings growth over the past year (19.5%) is below its 5-year average (26.5% per year).

Earnings vs Industry: ATVI earnings growth over the past year (19.5%) underperformed the Entertainment industry 19.5%.


Return on Equity

High ROE: ATVI's Return on Equity (15.6%) is considered low.


Financial Health

How is Activision Blizzard's financial position?


Financial Position Analysis

Short Term Liabilities: ATVI's short term assets ($11.2B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: ATVI's short term assets ($11.2B) exceed its long term liabilities ($5.0B).


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 71.9% to 21.3% over the past 5 years.

Debt Coverage: ATVI's debt is well covered by operating cash flow (80.2%).

Interest Coverage: ATVI's interest payments on its debt are well covered by EBIT (31.8x coverage).


Balance Sheet


Dividend

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

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATVI's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: ATVI's dividend (0.58%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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

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

0.9yrs

Average management tenure


CEO

Bobby Kotick (58 yo)

30.92yrs

Tenure

US$154,613,318

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 ($USD154.61M) is above average for companies of similar size in the US market ($USD11.47M).

Compensation vs Earnings: Bobby's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ATVI's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: ATVI's board of directors are considered experienced (8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$63.363b
  • Shares outstanding: 778.89m
  • Website: https://www.activisionblizzard.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:03
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.