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Market Cap

US$70.0b

Last Updated

2021/05/06 02:40 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ATVI's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

ATVI

-4.8%

US Entertainment

-1.6%

US Market


1 Year Return

23.6%

ATVI

60.4%

US Entertainment

52.8%

US Market

Return vs Industry: ATVI underperformed the US Entertainment industry which returned 64.7% over the past year.

Return vs Market: ATVI underperformed the US Market which returned 52.4% over the past year.


Shareholder returns

ATVIIndustryMarket
7 Day-1.3%-4.8%-1.6%
30 Day-8.0%-5.0%1.3%
90 Day-2.8%-9.9%3.5%
1 Year24.2%23.6%60.6%60.4%55.4%52.8%
3 Year28.8%26.3%91.5%88.7%63.5%53.2%
5 Year150.3%142.7%154.2%143.6%125.8%100.7%

Long-Term 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?

30.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATVI ($90.08) is trading above our estimate of fair value ($80.88)

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


Price To Earnings Ratio

PE vs Industry: ATVI is good value based on its PE Ratio (30.1x) compared to the US Entertainment industry average (37.7x).

PE vs Market: ATVI is poor value based on its PE Ratio (30.1x) compared to the US market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: ATVI is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: ATVI is good value based on its PB Ratio (4.6x) compared to the US Entertainment industry average (4.8x).


Future Growth

How is Activision Blizzard forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATVI's forecast earnings growth (8.5% per year) is above the savings rate (2%).

Earnings vs Market: ATVI's earnings (8.5% per year) are forecast to grow slower than the US market (16% per year).

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

Revenue vs Market: ATVI's revenue (5.9% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ATVI's revenue (5.9% 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 (15.3%).


Past Performance

How has Activision Blizzard performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATVI has high quality earnings.

Growing Profit Margin: ATVI's current net profit margins (27%) are higher than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: ATVI's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: ATVI's earnings growth over the past year (48%) exceeds its 5-year average (24.1% per year).

Earnings vs Industry: ATVI earnings growth over the past year (48%) exceeded the Entertainment industry 45.7%.


Return on Equity

High ROE: ATVI's Return on Equity (15.1%) is considered low.


Financial Health

How is Activision Blizzard's financial position?


Financial Position Analysis

Short Term Liabilities: ATVI's short term assets ($10.9B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: ATVI's short term assets ($10.9B) exceed its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: ATVI's debt to equity ratio (21.6%) is considered satisfactory.

Reducing Debt: ATVI's debt to equity ratio has reduced from 69.8% to 21.6% over the past 5 years.

Debt Coverage: ATVI's debt is well covered by operating cash flow (88.9%).

Interest Coverage: ATVI's interest payments on its debt are well covered by EBIT (30.8x coverage).


Balance Sheet


Dividend

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

0.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATVI's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: ATVI's dividend (0.52%) is low compared to the top 25% of dividend payers in the US market (3.42%).


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?

1.2yrs

Average management tenure


CEO

Bobby Kotick (57 yo)

30.25yrs

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 ($USD154.61M) is above average for companies of similar size in the US market ($USD11.13M).

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 ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: ATVI's board of directors are considered experienced (6.6 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 company bio, 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
  • Market Cap: US$69.994b
  • Shares outstanding: 777.02m
  • Website: https://www.activisionblizzard.com

Number of Employees


Location

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

Listings


Biography

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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 02:40
End of Day Share Price2021/05/05 00:00
Earnings2021/03/31
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.